Q:

What percent do you pay in taxes if you win the lottery?

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Quick Answer

If a person wins more than $413,201 as a single person or $464,850 as a couple in the lottery, the federal tax rate is 39.6 percent. State taxes may also come into play, but these vary based on the state of residence.

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What percent do you pay in taxes if you win the lottery?
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Full Answer

The amount of tax paid on lottery winnings also depends on whether the winner takes the winnings in a lump sum or in monthly payments. In February 2015, the Powerball jackpot sat at $500 million. If a single person were to win this jackpot and chose a lump sum payment, he would not receive $500 million. Instead, he would have to pay $134 million in federal taxes plus whatever state taxes apply.

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