How much tax do you pay on lottery winnings in Utah?

Utah does not operate a lottery, but if you buy a ticket in another state you still owe Utah income tax of up to 4.5% on the winnings when you file.

Is it better to take the lump sum or annuity in Utah?

The state rate of 4.5% applies to both, so Utah's tax treatment does not favour one over the other. The decision comes down to whether you want control of the capital or the structural protection of a payment stream.

How much is withheld immediately?

The lottery withholds 24% federally at claim time, plus state withholding in Utah. That is less than you actually owe. The top federal bracket is 37%, and the difference is due when you file.

Utah lottery taxes

Q: Can lottery winners stay anonymous in Utah?

Not applicable, no state lottery. Utah operates no lottery and sells no Powerball or Mega Millions tickets. Winnings from a ticket bought in Idaho, Wyoming, Nevada or Arizona are still taxable Utah income.

Utah does not run a lottery, but a ticket bought across the state line is still taxable Utah income.

State rate

4.5%

Anonymity

Not applicable, no state lottery

Local tax

None

Utah operates no lottery and sells no Powerball or Mega Millions tickets. Winnings from a ticket bought in Idaho, Wyoming, Nevada or Arizona are still taxable Utah income.

Run your own numbers

Switch games, compare the annuity, change your filing status, then plan what to do with what is left.

1. Choose a jackpot

Powerball

$760 million

Cash value $326 million

Next draw Saturday, October 31

Mega Millions

$463 million

Cash value $194.9 million

Next draw Friday, October 30

2. Where did you buy the ticket?

State

Filing status

Payout

3. What you actually take home

Your estimated take-home

$190,760,000

41.48% of the prize goes to tax

You keep$190,760,00058.52%

Federal tax$120,570,00036.98%

Utah tax$14,670,0004.5%

Cash value (lump sum)	$326,000,000
Federal tax withheld24% taken automatically at claim time	−$78,240,000
Additional federal tax due at filingThe gap between 24% withholding and your real bracket	−$42,330,000
Utah state tax4.5% top marginal rate	−$14,670,000
Total tax	−$135,240,000
You keep	$190,760,000

The lottery withholds $78,240,000 up front, but your actual federal bill is $120,570,000. Set aside roughly $42,330,000 for April. This shortfall is the most common surprise for jackpot winners.

4. Plan what to do with it

The hard part is not the windfall, it is what is left in year ten. Sketch out your spending and see what the remainder can pay you every year, indefinitely.

What would you buy first?

Tap an idea to add it at a typical price, or dream up your own. Every amount stays editable once it is in your plan.

The fun part

The people you love

Something else

Amount (USD)

Your plan

Nothing yet. Start spending and watch what is left keep paying you.

After-tax winnings: $190,760,000
Planned spending: −$0
Left to invest: $190,760,000

Paid to you every year, for life

$7,630,400

That is $635,867 a month, or about 87 times the typical American household's income, without touching the principal.

Assumes the remaining $190,760,000 is invested and you draw 4.0% a year, the standard planning rule for money meant to last indefinitely.

Share your plan

Anyone with the link sees your breakdown and can build their own.

Save image

Utah lottery tax questions

Compare with other states

See every state ranked

Rates reflect each state's top marginal income tax rate as applied to lottery winnings, current as of 2026-01-01. The amount withheld at claim time frequently differs. This is an estimate for planning, not tax advice.