Do you have to pay taxes on a sweepstakes win? Yes, in the United States, any winnings from a sweepstakes are considered taxable income by the IRS. This means that winners must report the full value of their prizes on their tax returns, and they may owe federal and state taxes depending on their total income. Do you have to pay taxes on a sweepstakes win? It's essential for winners to keep accurate records and consult a tax professional to understand their specific tax obligations related to their winnings.