Lottery Calculator
Use the Michigan Lottery tax calculator to find out how much money you will receive if you win a prize. You will be able to see how much is withheld in federal and state taxes. It's a quick and easy way to discover the value of your final payout, as the tax analysis is carried out for you at the touch of a button.
To calculate your payout, enter the prize amount in the box below. If it's a jackpot prize, indicate whether you would prefer the payment method to be an annuity or a cash lump sum.
Cash or Annuity
If you are a jackpot winner, tax is due whether you want to take the money as an annuity or a lump sum. The advertised jackpot of a lottery is always the annuitized value and shows how much you would receive before taxes if the money is invested over 29 years. The cash value is how much there is in the jackpot fund on the day of the drawing.
Michigan Lottery Taxes
If you win a lottery prize of up to $600, there are no tax deductions in Michigan. For prizes between $600.01 and $5,000, you do not owe any tax but winnings must be reported. You'll have to fill out a claim form and will be issued a W-2G form to complete your tax returns. Lottery Clubs must submit a separate form if they win to determine their tax requirements.
Prizes above $5,000 are subject to both federal tax and state tax. The federal withholding starts at 24 percent, but if you win a big jackpot it is likely that you will move into the top federal tax bracket of 37 percent. State tax is currently withheld at a rate of 4.25 percent in Michigan.
The precise amount due on a prize will also be determined by your individual circumstances. Non-U.S. residents, for example, are subject to a 30 percent federal tax withholding if they win a Michigan Lottery prize.
If you are a resident of a different U.S. state, your prize is still subject to the rate of tax that is applied in Michigan if that is where you bought your ticket.