What is the tax on a vehicle won in a contest?

Question

If I won a vehicle, say worth $30,000 in a contest or sweepstakes, how much tax would I have to pay? Are there other hidden costs?

Answer 1

The tax is unknown.  If you are in the 25% tax bracket, the tax would be $7500.  If you are in the 35% bracket, it would be closer to $10,000.

To pick up the vehicle, you'd have to turn over $6000 in tax to be sent in as withholding.