Ohio lottery winnings are taxable Ohio income, and for 2026 the Ohio Lottery withholds 2.75% state tax from every prize it must report to the IRS (Ohio Revised Code 5747.062).
Federal rules for 2026 put prizes of $2,000 or more (after the wager) on Form W-2G, and 24% federal tax is withheld once winnings minus the wager exceed $5,000. A $1 Ohio Pick 4 Straight win of $5,000 is therefore reported on a W-2G and has $137.50 (2.75%) of Ohio tax withheld, yet stays below the federal withholding line at $4,999 after the wager.
A $500 Pick 3 Straight win falls under the W-2G threshold, so nothing is withheld, but it still counts as taxable income. A $50,000 Pick 5 Straight win has both federal (24%) and Ohio (2.75%) tax withheld. To estimate the take-home amount of any Ohio prize, use the lottery tax calculator.