Wisconsin lottery tax in 2026: withheld at the top rate, no losses allowed
Wisconsin withholds lottery prizes at its top rate, 7.65 %, and it does not let gambling losses reduce the state tax.
- Top Wisconsin rate
- 7.65 %
- State withholding
- 7.65 % from $2,000
- Losses deductible in Wisconsin
- no
- Federal withholding
- 24 %
Lump sum after all taxes
$148,131,736
44.6 % of the prize goes to tax: $119,368,264. $84,663,750 is withheld at the claim, the rest is due with the 2026 return.
| Prize this year | $267,500,000 |
| Federal income tax (top rate reached 37 %) | $98,913,361 |
| Wisconsin tax | $20,454,904 |
| Withheld when the prize is paid | $84,663,750 |
| Still to pay with the return | $34,704,514 |
Compiled by Radif Partners · How we calculate · brackets, state rates and lottery rules read on official sites · estimate, not tax advice
A single Wisconsin resident who wins $750,000 on a Wisconsin Lottery ticket in 2026 owes the state about $50,562 and the IRS $244,680, and keeps $454,758. The Department of Revenue requires 7.65 % of state tax to be withheld from any prize of $2,000 or more, which is the top bracket rate itself, so the claim covers nearly all of the Wisconsin tax: $57,375 held against $50,562 due. The federal side is the opposite, with 24 % withheld on a prize taxed mostly at 37 %. Wisconsin is also strict on losses: losing lottery tickets and pari-mutuel bets are not deductible on the Wisconsin return, even for a winner who itemizes federally. Nonresidents owe Wisconsin on Wisconsin Lottery prizes and on Powerball or Mega Millions tickets bought from a Wisconsin retailer.
Your Wisconsin prize after tax
Lump sum after all taxes
$454,758
| Prize this year | $750,000 |
| Federal income tax (top rate reached 37 %) | $244,680 |
| Wisconsin tax | $50,562 |
| Withheld when the prize is paid | $237,375 |
A withholding rate that matches the tax
Publication 600 of the Wisconsin Department of Revenue sets the state withholding on a lottery prize at 7.65 % for individuals, starting at $2,000 (Wisconsin Publication 600, Taxation of Gambling Income). That figure is not arbitrary: it is the top rate of the 2026 schedule, which applies above $332,720 of taxable income for a single filer and $443,630 for a married couple filing jointly (Wisconsin 2026 Form 1-ES instructions). A large prize spends most of its dollars in that bracket, so the claim and the final bill end close together. On the $750,000 example the difference is -$6,813.
The lower rates, 3.5 %, 4.4 % and 5.3 %, matter mostly for salaries. Wisconsin's sliding-scale standard deduction, $13,960 for a single filer and $25,840 for a couple, shrinks as income rises and reaches zero well below the income of a big winner. The estimates on this page keep the full deduction, so the true Wisconsin tax of a large winner is higher by about $1,068 for a single filer. The personal exemption of $700 per person survives at any income.
Prize buyers are caught too. Someone who sells future annuity payments to a company receives the price from that company, and Publication 600 requires the purchaser of an assigned prize to withhold 7.65 % as well.
Losing tickets do not count in Wisconsin
Federally, a gambler who itemizes can deduct losses up to winnings, at 90 % of their amount from 2026. Wisconsin gives nothing comparable. Publication 600 says there is no deduction on the Wisconsin return for lottery or pari-mutuel losses, and they may not be used for the itemized deduction credit either. A casual gambler may net wins and losses within a single session, as the federal session method allows, but a session that ends in a loss is not deductible. Only a professional gambler reporting on Schedule C can offset losses against winnings.
Wisconsin tax on a year of wins and losses
Tax on the 2026 gambling result
$3,198
| Losses deductible in 2026 (90 %, up to winnings) | $21,600 |
| Losses that no longer count | $2,400 |
| Itemizing beats the standard deduction | yes |
| Federal tax on the gambling | $1,608 |
Take a Wisconsin resident with $70,000 of salary who won $30,000 over the year at a tribal casino and lost $24,000 along the way. Federally, itemizing lets $21,600 of losses count and the federal tax on the gambling is $1,608. Wisconsin taxes the full $30,000: $1,590, although the gambler came out only $6,000 ahead. The 90 % rule for gambling losses explains the federal half.
Kenosha, Hudson and the Illinois line
Wisconsin taxes nonresidents on Wisconsin Lottery prizes and on multistate tickets bought from a Wisconsin retailer, and they file Form 1NPR once their Wisconsin gross income passes the filing threshold of Publication 122 (Wisconsin Publication 122, nonresidents). Illinois residents who shop in Kenosha and Minnesotans who cross the St. Croix into Hudson are the usual cases. Their home states then credit the Wisconsin tax.
| Winner and ticket | Wisconsin | Home state after credit | Federal | Kept |
|---|---|---|---|---|
| Wisconsin single, Wisconsin ticket | $50,562 | $0 | $244,680 | $454,758 |
| Wisconsin couple, Wisconsin ticket | $48,529 | $0 | $215,861 | $485,611 |
| Illinois single, Wisconsin ticket | $48,538 | $134 | $244,680 | $456,648 |
| Minnesota single, Wisconsin ticket | $48,538 | $21,488 | $244,680 | $435,293 |
| Wisconsin single, Illinois ticket | $13,571 | $36,991 | $244,680 | $454,758 |
The Illinois buyer pays Wisconsin more than Illinois would have taken, since Illinois taxes at a flat 4.95 %; Illinois credits the Wisconsin tax and the excess is simply lost. The Minnesota buyer is in the opposite position: Minnesota's top rate is higher, so after its credit Minnesota still collects $21,488. For a Wisconsinite holding an Illinois ticket, Schedule OS gives the credit for net tax paid to another state, capped at the Wisconsin tax on the income taxed by both (Schedule OS instructions); that cap does not apply to income taxable by both Wisconsin and Minnesota, Iowa, Illinois or Michigan. The credit for taxes paid to another state has the general mechanics.
The October 21, 2026 Powerball for a Milwaukee couple
On the cash value of that drawing, $267.5 million, a married couple in Milwaukee with $95,000 of wages owes Wisconsin $20,454,904 and the IRS $98,913,361. The Wisconsin Lottery holds $20,463,750 for the state at the claim, almost the whole state bill, while the federal balance due in April is $34,713,361. No city or county tax is added in these Wisconsin figures. Powerball after taxes sets the same drawing against other states.
These are estimates on the published 2026 rules, not tax advice. A lottery ticket is a paid entertainment, and the National Problem Gambling Helpline, 1-800-MY-RESET, offers free and confidential help (NCPG).