Does Ohio tax lottery winnings?
Yes. Ohio taxes lottery prizes as ordinary income, at a flat 2.75% in 2026. Ohio withholds 2.75% for state tax when the prize is paid. For a large prize, that covers most of the state tax you will owe.
2026 state tax uses $332 plus 2.75% above $26,050; no state tax at or below that threshold. Personal exemptions, credits and municipal taxes are not modeled.
Source: Ohio Revised Code (“two and three-quarters per cent for calendar year 2026 and thereafter”), checked October 5, 2026.
The fixed $332 matters as well as the 2.75% rate
Before personal exemptions and credits, the 2026 statutory calculation on $1 million is $332 + ($1,000,000 − $26,050) × 2.75% = $27,115.625, rounded to $27,116. Tax is zero at or below the $26,050 threshold in this simplified model. If other income already exceeds that threshold, the $332 is present in both baseline and prize-year tax and cancels out of the incremental estimate. Municipal taxes and personal exemptions are not modeled.
For comparison, a $10,000 cash prize on top of $60,000 of other income adds $1,550 in federal tax and $275 in modeled Ohio tax, leaving $8,175 from the prize. The estimate subtracts tax on the existing income so that only the prize’s additional tax is charged.
Illustrative 2026 calculation, not a reported payout. Rule source. Model assumptions and corrections.
Ohio Powerball payout after taxes
A single winner living in Ohio who takes the cash option on the $674 Million Powerball jackpot keeps about $171,100,134, after about $104,993,000 in federal tax and $7,806,866 in Ohio tax. Recalculated daily.
| Game | Ohio tax (lump sum) | Lump sum take-home | Annuity take-home (30 payments) |
|---|---|---|---|
| Powerball$674 Million jackpot · $283.9 Million cash | $7,806,866 | $171,100,134 | $407,596,522 |
| Mega Millions$443 Million jackpot · $186.5 Million cash | $5,128,366 | $112,416,634 | $268,419,024 |
How much is $1 million after taxes in Ohio?
About $652,884. A single filer with no other income pays about $320,000 in federal tax and $27,116 in Ohio tax on a $1,000,000 prize. When you claim, $267,500 is withheld, and the rest of the tax is due when you file.
| Prize (cash) | Federal tax | Ohio tax | Take-home |
|---|---|---|---|
| $1,000,000 | $320,000 | $27,116 | $652,884 |
| $2,000,000 | $690,000 | $54,616 | $1,255,384 |
| $10,000,000 | $3,650,000 | $274,616 | $6,075,384 |
| $100,000,000 | $36,950,000 | $2,749,616 | $60,300,384 |
| $1,000,000,000 | $369,950,000 | $27,499,616 | $602,550,384 |
Lump sum, single filer with no other income, 2026 federal and Ohio rates. A $2,000,000 prize is the Powerball or Mega Millions match-5 prize with the multiplier. Smaller prizes and other states: lottery winnings after taxes by amount.
Claiming in Ohio: 180 days to claim, then 60 days to take the cash
- Ohio draw-game tickets must be cashed within 180 days of the drawing date (Ohio Lottery).
- An Ohio Powerball jackpot winner can choose the cash option for 60 calendar days from presenting the winning ticket to the Ohio Lottery Commission; without a choice, the prize is paid in 30 annual installments (Ohio Adm.Code 3770:1-9-958).
Can you stay anonymous in Ohio?
Only in some cases. A trust may claim; beneficial owners' names, addresses and identifiers are confidential without consent. Individual claims are public (source). The guide to what to do if you win the lottery compares the rules in every state.
Ohio compared with neighboring states
$674 Million Powerball jackpot, lump sum, by state of residence. No neighboring state does better: an Ohio resident keeps $5,876,276 more than a winner living in West Virginia.
| State of residence | State & local tax | Lump sum take-home |
|---|---|---|
| Ohio | $7,806,866 | $171,100,134 |
| Indiana | $8,375,050 | $170,531,950 |
| Pennsylvania | $8,715,730 | $170,191,270 |
| Kentucky | $9,936,500 | $168,970,500 |
| Michigan | $12,065,750 | $166,841,250 |
| West Virginia | $13,683,142 | $165,223,858 |
Hypothetical residence-tax comparison only. Tax imposed by the ticket-selling state and credits for tax paid elsewhere are excluded; this is especially important for residents of states without lottery sales. Taxes on lottery winnings explains what happens when you buy in another state.
Estimates for a single filer with no other income unless noted. Formulas and sources: methodology. Every state's rates: lottery tax by state.