1. Ohio Lottery Tax Overview

Ohio imposes a 4% state tax on lottery winnings, in addition to federal taxes. The federal tax rate depends on your tax bracket and the amount won, with 24% typically withheld for prizes over $5,000.

2. How the Calculator Works

The calculator uses the following formula:

Where:

• Winnings — The gross lottery prize amount
• 0.04 — Ohio's 4% state tax rate
• Federal Rate — Your applicable federal tax rate (default 24%)

3. Understanding Lottery Taxes

Details: Ohio lottery winnings are subject to both state and federal taxes. The state automatically withholds 4%, while federal withholding is typically 24% for prizes over $5,000. You may owe additional taxes when filing your return depending on your total income.

4. Using the Calculator

Tips: Enter your gross winnings amount and your expected federal tax rate. The default federal rate is 24%, but you may adjust this based on your tax situation.

5. Frequently Asked Questions (FAQ)

Q1: What's the minimum amount subject to tax in Ohio?
A: All lottery winnings are subject to the 4% state tax. Federal withholding begins at $600.

Q2: Can I deduct lottery losses?
A: You may deduct gambling losses up to the amount of winnings if you itemize deductions on your federal return.

Q3: Are there any local taxes on lottery winnings?
A: Ohio doesn't impose local taxes on lottery winnings beyond the 4% state tax.

Q4: How is the federal tax rate determined?
A: The rate depends on your total income. While 24% is typically withheld, your actual rate may be higher or lower.

Q5: What about multi-state lottery games?
A: The same 4% Ohio tax applies to Powerball, Mega Millions, and other multi-state games when won by Ohio residents.