Do NYL withholds NYC income tax of 3.876% from NYC residents for prizes over $5,000


I know Federal and State tax(8.82) are withheld on the spot

I want to know do they withhold the 3.876% NYC tax also for NYC residents from prizes of over $5,000 as I live in NYC 

Stat$talker's avatar - animated sphere.gif
In response to NY10

Well, I would think that NYC's tax rate might be a little higher than tHAt..!!

not sure , but.. I remember driving to NYC awhile ago,.. drove thru the Lincoln Tunnel.. and Dhamn near hit the ceiling of my vehicle when I got to the toll booth attendant...she told me the fee was $13.Eek

...I said ,, "Lady..!!, I didn't spend the night in there, .I merely DROVE thru there..!! Shocked and it only took about 15 min..!!

No No Hell, where I'm from ?.. our highest toll charge is $.50 cents..!!

So., if it is THAT low of a Income tax rate, it's because NYC makes its $$ off of suckers like me.. unsuspecting travelers.! LOL

So, the State Lottery is a "Johnny come lately", and there is no more depth to NYker's pockets.Thud


In response to Stat$talker

Well you have to understand it’s just a city tax...It’s one of very few cities to have it’s own income tax..So 3.876 % is huge...It’s on top of whatever Fed bracket rate your in and the NY state 8.82 %...But for lottery winnings Fed 24%,State 8.82 % But I want to know do they take the city tax also on the spot...

about NYC,there’s also sales tax and property tax too...On top of State sales tax...But city sales tax is limited to few things though like hotels,taxi ride etc..Also city takes hundreds of millions in tickets to drivers,cyclists,bikers,subway fare evaders,home owners garbage,home owners bad sidewalk/front etc 

You can get a small packed cake for .50 or a box or str play in pick 3 or pick 4 for 50 cent in nyc 🤪

grwurston's avatar - Lottery-012.jpg
In response to NY10

Are lottery prizes taxable?
Lottery winnings of $600.01 and over are subject to Federal Withholding tax.  For winnings of $600.01, up to and including $5,000, you will be issued a W-2G form to report your winnings on your federal income tax form.  For winnings of $5,000.01 and over, your state's Department of Revenue removes the 24 percent federal withholding before you receive your winnings check (or, if it is an annuity, from each winnings check).  You then receive a W-2G form with each check to submit with your 1040 form to show that the 24 percent federal withholding already has been paid.  In addition to federal tax, your state will make additional withholdings for taxes, and most states will deduct other money that you may owe to the state, such as back taxes, child support, loan payments, etc.  In addition, like the federal tax withholding, the state tax withholding at the time of prize payout may not be the total state tax owed at the end of the year.  You must consult your state division of taxation for more information about the total state tax requirements for lottery winners.

The state tax withholdings are as follows:

Arizona  5% state withholding (Arizona residents), 6% state withholding (non-Arizona residents)
Arkansas  7% state withholding
California  No state tax on lottery prizes
Colorado  4% state withholding
Connecticut  6.99% state withholding
Delaware  No state tax on lottery prizes
Florida  No state tax on lottery prizes
Georgia  6% state withholding
Idaho  6.925% state withholding
Illinois  4.95% state withholding
Indiana  3.23% state withholding
Iowa  5% state withholding
Kansas  5% state withholding
Kentucky  5% state withholding
Louisiana  5% state withholding
Maine  5% state withholding
Maryland  8.95% state withholding (Maryland residents), 8% state withholding (non-Maryland residents)
Massachusetts  5% state withholding
Michigan  4.25% state withholding
Minnesota  7.25% state withholding
Mississippi  5% state withholding
Missouri  4% state withholding
Montana  6.9% state withholding
Nebraska  5% state withholding
New Hampshire  No state tax on lottery prizes
New Jersey  8% state withholding
New Mexico  6% state withholding
New York  8.82% state withholding, plus: 3.876% (NYC residents), 1.323% (Yonkers residents)
North Carolina  5.499% state withholding
North Dakota  2.9% state withholding
Ohio  4% state withholding
Oklahoma  4% state withholding
Oregon  8% state withholding
Pennsylvania  3.07% state withholding
Rhode Island  5.99% state withholding
South Carolina  7% state withholding
South Dakota  No state tax on lottery prizes
Tennessee  No state tax on lottery prizes
Texas  No state tax on lottery prizes
U.S. Virgin Islands  † Unknown State Tax Rate
Vermont  6% state withholding
Virginia  4% state withholding
Washington  No state tax on lottery prizes
Washington, D.C.  8.5% state withholding
West Virginia  6.5% state withholding
Wisconsin  7.65% state withholding
Wyoming  No state tax on lottery prizes

In response to Stat$talker

Probably when someone is farting or sleeping they are paying tax in New York City...

New York City”s yearly budget is less than only these states 

NY,CA and TX

Stat$talker's avatar - animated sphere.gif
In response to NY10

Another thing..!!

If equal treatment under the Law is true to the letter.. then everyone should pay the same rate of taxes FOR each tax bracket.!

Instead of 1 flat rate on ALL your Net earnings.. My 1st 15% tax bracket money is no different than someone who's Net earnings were at just the 15% tax bracket!

Even if I've earned $100,000...

Again, most folks don't "think outside the box"..!!


SaraAnnRapp's avatar - Lottery-059.jpg

"Render unto Caesar that which is Caesar's!" Hit With Stick

Stat$talker's avatar - animated sphere.gif
In response to SaraAnnRapp

Caesar has been dead for a loong time..!,  but I "C" your point..

I realize that we are living in the Biblical last the 2nd Beast, which rose up out of the land, with 2 Lamb-like horns(Church & State), but speaks like a dragon..!!

...But I still think, everyone should pay taxes equally as their Net earnings passes thru EACH tax bracket..!!..not 1 high flat rate on their ENTIRE Net earnings..


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