Does California Tax Lottery Winnings?

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Yes, California does tax lottery winnings. Lottery winnings are considered taxable income by the state, and winners must report them on their state tax returns. The tax rate depends on the winner\“s overall income bracket.

In California, lottery winnings are subject to state income tax, but they are exempt from state withholding tax. This means that while taxes are not automatically deducted from the prize, winners are responsible for paying the appropriate amount when filing their taxes.