Oregon Lottery Tax Information for 2025
Oregon Lottery winnings are subject to state income tax under specific conditions. The Oregon Department of Revenue (DOR) provides guidelines on how these winnings are taxed, including thresholds for withholding and reporting requirements.
Taxable Lottery Winnings
- Winnings from a single ticket or play exceeding $600 are fully taxable in Oregon.
- Winnings of $1,500 or more require 8% Oregon state tax to be withheld at the time of payout.
- Winnings between $600 and $1,500 are also taxable, but no withholding is required unless specified by the lottery operator.
- Winnings of $600 or less per ticket or play are not taxed by Oregon and are eligible for subtraction from Oregon taxable income.
Reporting and Filing Requirements
- Winners must report lottery winnings on their Oregon income tax return (Form OR-40).
- For nonresidents and part-year residents, Oregon lottery winnings over $600 are subject to Oregon tax.
- Winners should use Publication OR-17 for guidance on filing Oregon personal income taxes.
- If state tax was not withheld, consider making estimated tax payments or increasing withholding via Form OR-W-4.
Special Considerations
- Nonresidents may claim a subtraction for winnings of $600 or less per ticket or play, provided they are included in federal taxable income.
- Lottery winnings are considered Oregon-sourced income for nonresidents and part-year residents.
- For farm liquidation long-term capital gains, use Worksheet FCG in Publication OR-FCG to compute Oregon tax, then report the result on Form OR-40, line 20.
Source:
Publication OR-17
Publication OR-FCG
Form OR-40
Form OR-40-NP Instructions
Disclaimer: Always verify with the official Federal or State Department of Revenue Forms and Instructions for the most accurate and up-to-date tax information.