10/28/2026
🎰 DID YOU KNOW? 💰
💵 Lottery and scratch-off winnings over $600 are counted as ordinary income for federal tax purposes and are taxed at the same rates as wages!
📊 These rates range from 10%–37% in 2026, based on your tax bracket.
🏦 The lottery withholds 24% for federal tax when your winnings minus the ticket cost are more than $5,000—but that’s only a prepayment!
💸 Hit the jackpot? You could owe roughly 10 to 13 percentage points more when you file your taxes! On the other hand, if you win a smaller prize, you may get some of that withholding back.
🧾 For North Carolina, there is no special lottery tax rate, no lottery exemption, and no minimum amount below which winnings become tax-free!
💵 If you win $601 on a scratch-off, the NC Lottery is required by state law to withhold NC income tax before handing you the check.
📊 The withholding rate equals the current individual income tax rate: 3.99% in 2026.
🚨 Important Reminder! This information can vary depending on the state where you purchased the ticket—not the state where you live!
📌 Don't forget to plan for taxes on your winnings! Still confused? We can help. Contact us today to schedule a consultation!
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