Does Oregon tax lottery winnings?
Yes. Oregon taxes lottery prizes as ordinary income, at rates up to 9.9% in 2026. Oregon withholds 8% for state tax on prizes of $1,500 or more when the prize is paid. Withholding is a prepayment: most of a large prize is taxed at the top rate of 9.9%, so expect to pay the difference when you file.
Source: Oregon Lottery (“withholds an 8% state tax”), checked October 1, 2026.
State withholding is not your final Oregon tax
For a $1 million cash prize, state withholding is $80,000 and the bracket-only state estimate is $97,244. The difference is $17,244 before state deductions or credits. The $582,756 total take-home also excludes Portland-area local taxes. These omissions matter: the result is a state-and-federal estimate, not a complete local tax return.
For comparison, a $10,000 cash prize on top of $60,000 of other income adds $1,550 in federal tax and $875 in modeled Oregon tax, leaving $7,575 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.
Oregon lottery payout after taxes
A single winner living in Oregon who takes the cash option on the $674 Million Powerball jackpot keeps about $150,802,656, after about $104,993,000 in federal tax and $28,104,344 in Oregon tax. Recalculated daily.
| Game | Oregon tax (lump sum) | Lump sum take-home | Annuity take-home (30 payments) |
|---|---|---|---|
| Powerball$674 Million jackpot · $283.9 Million cash | $28,104,344 | $150,802,656 | $359,446,685 |
| Mega Millions$443 Million jackpot · $186.5 Million cash | $18,461,744 | $99,083,256 | $236,785,687 |
How much is $1 million after taxes in Oregon?
About $582,756. A single filer with no other income pays about $320,000 in federal tax and $97,244 in Oregon tax on a $1,000,000 prize. When you claim, $320,000 is withheld, and the rest of the tax is due when you file.
| Prize (cash) | Federal tax | Oregon tax | Take-home |
|---|---|---|---|
| $1,000,000 | $320,000 | $97,244 | $582,756 |
| $2,000,000 | $690,000 | $196,244 | $1,113,756 |
| $10,000,000 | $3,650,000 | $988,244 | $5,361,756 |
| $100,000,000 | $36,950,000 | $9,898,244 | $53,151,756 |
| $1,000,000,000 | $369,950,000 | $98,998,244 | $531,051,756 |
Lump sum, single filer with no other income, 2026 federal and Oregon 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 Oregon: validate first, then 60 days to choose
- An Oregon jackpot winner can validate the ticket first and then has 60 days from that date to choose the lump sum or the 30-year annuity (Oregon Lottery).
- Prizes of $50,000 and above are claimed by appointment at the Salem or Wilsonville Prize Payment Center (Oregon Lottery).
Can you stay anonymous in Oregon?
Yes. Name and address disclosure requires written authorization under the 2025 anonymity law (source). The guide to what to do if you win the lottery compares the rules in every state.
Billion-dollar jackpots won in Oregon
One of the largest lottery jackpots was sold in Oregon. Take-home is for a single Oregon resident at 2026 rates.
| Drawing | Jackpot | Lump sum take-home today |
|---|---|---|
| Powerball, April 6, 2024 | $1.33 Billion | $329,802,756 |
Oregon compared with neighboring states
$674 Million Powerball jackpot, lump sum, by state of residence. Every neighbor does better: a winner living in Washington keeps $28,104,344 more than an Oregon resident. Nevada does not sell lottery tickets, so residents buy them in a neighboring state.
| State of residence | State & local tax | Lump sum take-home |
|---|---|---|
| Washington | $0 | $178,907,000 |
| NevadaNo lottery sales | $0 | $178,907,000 |
| California | $0 | $178,907,000 |
| Idaho | $15,046,445 | $163,860,555 |
| Oregon | $28,104,344 | $150,802,656 |
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.