The State of Michigan will automatically withhold 4.25% of your winnings if you win over $5,000 on a single ticket or game. However, you’re required to report all winnings and pay that 4.25% tax rate.
Further, the Federal tax is 25%, and you’re legally obligated to report net winnings over any fiscal year to the IRS.
TaxAct has a helpful lottery tax calculator in case you want to see what your winnings will be after the government takes their slice.