LotteryLab

Arkansas Lottery Tax Calculator

See what you'd actually keep from a Arkansas lottery prize after federal and state taxes — Arkansas withholds up to 4.4%, plus federal tax.

Arkansas lottery take-home by jackpot size

Estimated net take-home after federal + 4.4% Arkansas state tax.

Advertised jackpot Lump-sum take-home Annuity total (30 yrs) Effective tax
$1,000,000 $627,812 $842,960 37%
$10,000,000 $5,901,812 $6,948,758 41%
$100,000,000 $58,641,812 $59,854,368 41%
$500,000,000 $293,041,812 $294,254,368 41%

Estimates use single-filer federal brackets and Arkansas's top lottery-withholding rate. Actual tax depends on your total income, filing status, deductions and residency. Not tax advice.

How Arkansas lottery winnings are taxed

Lottery prizes are taxable income. Every winner pays federal tax — the IRS withholds 24% up front, and the true rate climbs to 37% on large prizes. On top of that, Arkansas taxes lottery winnings at up to 4.4%. Taking the prize as a lump sum is taxed all in one year (pushing more into the top bracket); a 30-year annuity spreads the income out.

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Arkansas lottery tax FAQ

Does Arkansas tax lottery winnings?

Yes. Arkansas taxes lottery winnings at up to 4.4%, on top of federal tax (progressive, up to 37%).

How much tax do you pay on a $1 million Arkansas lottery prize?

On a $1,000,000 Arkansas prize taken as a lump sum, you'd owe roughly $372,188 in combined federal and state tax (about 37%), leaving about $627,812 take-home.

Is it better to take a lump sum or annuity in Arkansas?

A lump sum gives you the discounted cash value now; a 30-year annuity pays the full advertised jackpot in equal yearly installments. Either way Arkansas's 4.4% state rate and federal tax apply; the annuity can keep more of each year's payment in lower brackets. Use the calculator above to compare.