USA lottery tax

Foreigners' rights in American lotteries

In the United States, absolutely any income is taxed. The amount of tax is individual for each person and depends on many factors. Mortgage interest, as well as charity, and real estate tax is deducted from the general tax.

Hello! Shushanika with you, author of the blog “ All about the USA ».

Today I will talk about income tax. A lot of people ask about this. There are a lot of assumptions on this question.. Sometimes faithful, sometimes not quite. Some think, that taxes in the USA are huge, some think, what no. The truth is, that it all depends. What does it depend on, I'll tell you in today's video.

What is income tax? This is a tax, which is paid from any income. Be it a salary, interest on a deposit or on some deposits, or some freelance earnings. In the United States, taxes must be paid on absolutely any income. There are state taxes. There is a federal tax. Federal tax is paid by absolutely everyone. How much is paid by state, depends on each state. Each state has its own laws on this matter.. there is 7 states, in which there is no income tax at all. There people only pay federal tax, do not pay state tax. These are the states: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. There is also 2 state, in which there is income tax, but there is no tax on salary income. There income tax is paid only if it is income from bank deposits, from stock markets, etc.. It is paid for, but not for salary. These 2 state: Tennessee, New Hampshire.

No need to go blindly to live in that state, in which there is no income tax, just because, what can you think, that living there is cheaper and more profitable, because you do not pay income tax, which means you have more salary. The states also need to exist for something. They have taxes, with the help of which the state budget is created. In such states, in which there is no income tax, very high other taxes. for example, Texas and New Hampshire have the highest property taxes in the country. In any case, the state will take its from you. The absence of income tax does not always mean, that living in some place is cheaper. But, this can be a factor for many people.

Let's go back to that, how much taxes are paid in the USA. As I said, there is no definite number, which will answer this question. It all depends on so many things. First of all, it depends on income. I'll show you with the example of California. Unfortunately, impossible to show on the example of all 50 states. Each state has its own laws and numbers.

California has so called "tax brackets". They are in every state. Each state has different numbers. It all depends on, how much do you earn. «Single tax brackets», this is for those, who is not married / not married. The numbers are written here. For those, who earned less 7 124 dollars, paid 1%. They, who earned from 7 124 to 16 890 dollars, pay 2% etc. Everything depends on income. Likewise there is for those, who is married / married. They are a little better. If two people pay taxes, then the tax is less.

Thereby, you will understand, why americans, when they talk about salaries, talk about "dirty" salaries, that is about salaries, from which tax has not yet been deducted. They say: "I get 100 000 dollars a year ". Though, in fact, he gets less, because tax is deducted from it. If there is 2 human, to whom the company pays the same salary (let's say, 100 000 dollars a year), it's not a fact yet, that they get the same money on hand. Because one may not be married, and the other is married. They pay different taxes and receive different amounts of money..

There are still other things, on which depends, how much tax will you pay.

Continuation !

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Hire an immigration attorney for advice on moving to the USA. We also recommend that you consider immigration to Canada, as it is a great alternative to America.

Taxes on popular lottery games

Below are the popular lottery games and their tax percentage.


When buying tickets in the states: Oregon, New York and New Jersey, the following local tax will be withheld from the amount won:

  • Oregon withholding tax is 30% for winning amounts over 600 dollars and 38% for prizes, exceeding 1500 dollars.
  • In New Jersey, the IRS collects all prize money, included in the range 600 – 9999,99 dollars, the size of 30%. If the winning amount is 10000 dollars and above, then tax deductions will additionally include about 10,8 %.
  • Lottery, bought in New York, implies a tax of 30% for amounts from 600 dollars to 4999,99, and additionally will be withheld 8,82%, if the winning amount is or exceeds 5000 dollars.

Mega Millions

When buying tickets in the states: Oregon, New York and New Jersey, the following local tax will be withheld from the amount won:

  • The Oregon Lottery collects 30% for prizes over 600 dollars, and 8% are charged additionally, if the winning amount exceeds 1500 dollars.
  • In New Jersey, the taxation process includes 30% from winning amounts from 600 to 9999,99 dollars, and 40,8% - from the amounts, equal or exceeding 10000 dollars.
  • In New York, the tax on lottery winnings in the amount of 600 to 4999,99 dollars will also be 30%, in case of monetary reward, exceeding 5000 dollars - 38,82%.


This lottery, includes categories of tax collections of two types:

  1. One type of government payment is based on no tax on winning amounts up to 4999,50 dollars.
  2. The second category implies deductions in the amount of 44,17% (for non-residents) from all prize funds more than 4999,50 dollars. The levy consists of such taxes: staff, municipal, federal.


Game, which prizes are taxed in two categories:

  1. Prize amounts, which are less than or equal 4999,50 dollars, not subject to taxes.
  2. Any winnings over 4999,50 dollars are subject to a tax levy of 44,17% for non-residents of the United States of America, state tax, federal and municipal taxes.

Take 5

Lottery game, winning amounts which are taxed in one of three categories:

  1. In one of the categories of winnings, did not reach 599,99 dollars, not subject to tax deductions.
  2. All prize amounts for the second category, dollar range 600 – 4999,99 are subject to payment of tax in the amount 30% (for non-residents).
  3. The third category implies taxation for non-residents in the amount of 38,82% from all winning amounts, exceeding 5000 dollars.

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