What does NY state do with lottery money?
As the lottery is a government body and the prizes are public funds, the New York Constitution requires that all net proceeds from games go towards the support of schools.
Where do NYS lottery profits go?
Lottery revenue is distributed to local school districts by the same statutory formula used to distribute other state aid to education.
How much money does NY state make on lottery?
New York Lottery revenues totaled $9.741 billion, while net proceeds earned for the Lottery Aid to Education reached $3.377 billion for fiscal year 2020. New York Lottery revenues, net in fiscal year 2020 were less than the net revenues of 2019 by $550 million, or 5.3%.
What does the lottery do for the economy?
But lotteries for the most part have a regressive impact. Studies have found that the burden falls disproportionately on people with lower incomes, who typically spend a greater portion of their income on lotteries than those with higher incomes.
How much tax is taken from lottery winnings in NY?
New York Lottery Taxes
Any prize exceeding $5,000 is subject to automatic withholding of federal and state taxes (along with local taxes for New York City or Yonkers residents). Federal withholding is 24%. The lottery will withhold state tax using the highest tax rates in effect, which is currently 8.82%.
How much tax is deducted from a lottery win?
Before you see a dollar of lottery winnings, the IRS will take 25%. Up to an additional 13% could be withheld in state and local taxes, depending on where you live. Still, you’ll probably owe more when taxes are due, since the top federal tax rate is 37%.