In comparison with other states, this fits somewhere in the middle. The state withholding will be between three and five percent, at the same scaled rate as any other income. While there will be no sales tax in Mississippi when the state lottery goes live later this year, winnings will still be subject to tax. Why would you tax evidence of a bet?” said Frierson, who added that a lottery ticket itself is ‘a tax on stupidity’. It's considered a service, not tangible personal property. The bill is currently pending and Revenue Commissioner Herb Frierson says it is a very straightforward issue. ![]() However, the Mississippi Legislature is now expected to pass House Bill 1576 to make it clear that lottery tickets will not be subject to sales taxes. Chokwe Antar Lumumba, the Mayor of Jackson, had also spoken late last year about a special one-percent infrastructure sales tax, estimating that his city would receive around $4 million a year from the lottery. Sales tax in Mississippi is seven percent. ![]() However, there had previously been some reports that it could be a different story in Mississippi. ![]() In other words, you do not have to pay any tax at the time you purchase your tickets. Lottery tickets are exempt from sales taxes in all U.S.
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