For example, wins between $10,001 and $500,000 have a 5% tax rate applied to them. If your jackpot is higher than $10,000, there’s more tax. For starters, there’s the standard 3% New Jersey income tax on lottery winnings up to $10,000. In addition to federal taxes, there is a state tax on top of that and the size of your lottery win will determine what that rate is. The lottery in New Jersey is interesting. 2 – In New Jersey, The State Lottery Has Its Own Tax Rate The source of the winnings will also send a copy of that same W-2G to the IRS. Winners will also receive a W-2G form in the mail that help you calculate your annual income tax paperwork. That’s because New Jersey online casinos and racetracks are legally obligated to report the large jackpots to the IRS. High rollers who frequent the casinos in New Jersey or play the ponies and win big won’t be able to keep their good fortune a secret. 5 – Not Reporting Gambling Winning In New Jersey Will Earn You Finesġ – In New Jersey, You Can’t Hide Big Wins.4 – Paying Taxes On Gambling Income Is Straightforward.

3 – Casino and Sports Betting Wins Are Treated Differently Than Lottery Wins.2 – In New Jersey, The State Lottery Has Its Own Tax Rate.1 – In New Jersey, You Can’t Hide Big Wins.

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