How much do I pay in taxes if I win the lottery?

Winning the lottery can lead to significant tax implications. Lottery winnings are typically considered taxable income and are subject to federal income tax, which can be as high as 37% as of the 2024 tax year. Additionally, state taxes may apply depending on where you reside and where the lottery ticket was purchased. Lump-sum payments may have higher tax rates compared to annuity payments, which spread the winnings over several years. It's crucial to consult with a tax professional or financial advisor to understand the specific tax obligations that come with winning the lottery and to plan accordingly.