Michigan tax on lottery and gambling winnings
Michigan taxes gambling and lottery winnings as income, at rates up to 4.25%. On a $1,000,000 lottery prize to a single filer with no other income the state takes about $42,500, and the winner keeps about $637,500 after federal tax as well.
Michigan income tax brackets for 2026
| Rate | Single: taxable income | Married filing jointly: taxable income |
|---|---|---|
| 4.25% | over $0 | over $0 |
What to know
Michigan taxes its residents on winnings from anywhere. If you won in another state as a non-resident, that state may tax the prize too, and your home state usually gives a credit for it. The federal tax is the same everywhere: see the 2026 federal rules, or compare every state.
Questions
Does Michigan tax lottery winnings?
Yes, as ordinary income at the state's 2026 rates, up to 4.25%.
How much tax is due on a $1 million prize in Michigan?
For a single filer with no other income, about $42,500 in state tax and $320,000 in federal tax, leaving about $637,500. The federal withholding of 24% covers only part of it.
State brackets from the Tax Foundation, federal from the IRS, 2026. Estimates, not tax advice. Methodology.
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