You typically only pay taxes on lottery winnings once, when you receive the winnings. However, the amount of tax you pay on your winnings may be spread out over several years depending on how you choose to receive your winnings. For example, if you choose to receive your lottery winnings as an annuity, you will receive a portion of the winnings each year over a period of time, and you will pay taxes on each installment of the winnings as you receive them