Will you get taxed on lotto winnings in Colorado?

Yes, lottery winnings are considered taxable income in Colorado and taxed at the applicable federal and state income tax rates.

For federal income tax purposes, lottery winnings are taxed as ordinary income, and the amount withheld for taxes depends on the amount won and the winner's filing status and income tax bracket.

In addition, Colorado requires state income taxes to be withheld from lottery winnings. The state withholding rate is 5%, and it applies to all lottery winnings over $5,000.