Oregon Lottery

Oregon won’t tax your winnings from an Oregon Lottery ticket or play that results in winnings of $600 or less. Individual Oregon Lottery winnings of more than $600 per ticket or play are taxed by Oregon and aren’t eligible for the subtraction.

“Oregon Lottery” means all games offered by the Oregon State Lottery commission and purchased in Oregon, including games jointly administered by Oregon and other states (such as Powerball). Oregon Lottery doesn’t include gambling winnings from other sources, such as tribal gaming centers.

Winnings of more than $600 from a single ticket or play are fully taxable and may be reported by the Oregon State Lottery on Form W-2G. Lottery winnings that are more than $1,500 must have 8 percent withheld for Oregon taxes. If state income tax wasn't withheld from your gambling winnings consider making estimated tax payments or increasing your withholding from your wages. To increase your Oregon withholding, complete an additional withholding certificate. Use Form OR-W-4 and file the form with your employer.

Did you claim gambling losses as an itemized deduction? If so, see the instructions for Schedule OR-A for more information about this deduction. If you are an American Indian, see the “American Indian” subtraction.

Example: Margaret purchased two Oregon Lottery tickets and won $1,000 on one ticket and $500 on the other. She also won $300 from a lottery ticket she bought in Idaho, and $150 on a slot machine at an Oregon casino. Margaret included all $1,950 in winning on her federal return. Margaret can subtract $500 of her Oregon Lottery ticket winnings on Schedule OR-ASC.

Nonresidents: Oregon Lottery winnings are taxable to nonresidents. Oregon Lottery winnings included in federal taxable income are eligible for the subtraction when winnings per ticket or play are $600 or less.

Exception for pre-1998 tickets: You may subtract all Oregon Lottery winnings included in your federal income from tickets purchased prior to January 1, 1998. Did you assign your lottery winnings to a private company and receive a lump-sum settlement? If so, your settlement isn’t taxable by Oregon if your winning ticket was purchased before January 1, 1998. Winnings from tickets purchased on or after January 1, 1998 are fully taxable