Colorado Lottery Tax Calculator
See what you'd actually keep from a Colorado lottery prize after federal and state taxes — Colorado withholds up to 4.4%, plus federal tax.
Colorado lottery take-home by jackpot size
Estimated net take-home after federal + 4.4% Colorado 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 Colorado's top lottery-withholding rate. Actual tax depends on your total income, filing status, deductions and residency. Not tax advice.
How Colorado 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, Colorado 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.
See the latest Colorado lottery results and games →
Colorado lottery tax FAQ
Does Colorado tax lottery winnings?
Yes. Colorado 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 Colorado lottery prize?
On a $1,000,000 Colorado 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 Colorado?
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 Colorado'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.