Lottery Tax Calculator — What You’d Actually Take Home
Enter a prize amount and your state. We’ll show federal and state withholding, the worst-case tax bill, and the lump sum vs. annuity math — honestly, with no spin.
Estimates use the mandatory 24% federal withholding on prizes over $5,000, the 37% top federal bracket as the “could owe up to” bound, and each state lottery’s published withholding rate (last reviewed 2026-01-15). Lump sum assumes a cash value of ~43% of the advertised jackpot. This is an estimate, not tax advice — for a serious win, hire a CPA before you claim.
How lottery taxes actually work
Lottery winnings are ordinary taxable income. Three layers matter:
- Federal withholding: the lottery automatically keeps 24% of any prize over $5,000 for the IRS.
- Federal true-up at filing: a big prize puts you in the 37% bracket, so you’ll likely owe the difference between 24% withheld and your real rate.
- State tax: ranges from 0% (e.g., Florida, Texas, California for CA Lottery prizes) to over 10% (New York). A few states exempt their own lottery’s prizes.
Lump sum vs. annuity: the advertised jackpot is the 30-year annuity total. The cash option is about 43% of that, taxed at once. The annuity spreads taxes over 30 years and removes the “spend it all” risk; the lump sum gives you control and investment upside. People with good advisors choose both ways — the right answer depends on you.
Lottery tax withholding by state
| State | State withholding |
|---|---|
| Alabama | 5% |
| Alaska | No state tax |
| Arizona | 2.5% |
| Arkansas | 3.9% |
| California | No state tax California does not tax California Lottery winnings. |
| Colorado | 4.4% |
| Connecticut | 6.99% |
| Delaware | 6.6% |
| Florida | No state tax |
| Georgia | 5.39% |
| Hawaii | 8.25% |
| Idaho | 5.7% |
| Illinois | 4.95% |
| Indiana | 3% |
| Iowa | 3.8% |
| Kansas | 5% |
| Kentucky | 4% |
| Louisiana | 3% |
| Maine | 7.15% |
| Maryland | 8.75% |
| Massachusetts | 5% |
| Michigan | 4.25% |
| Minnesota | 7.25% |
| Mississippi | 5% |
| Missouri | 4% |
| Montana | 5.9% |
| Nebraska | 5% |
| Nevada | No state tax |
| New Hampshire | No state tax No state income tax on lottery winnings. |
| New Jersey | 8% |
| New Mexico | 5.9% |
| New York | 10.9% New York City and Yonkers residents owe additional local withholding (NYC +3.876%). |
| North Carolina | 4.25% |
| North Dakota | 2.9% |
| Ohio | 3.5% |
| Oklahoma | 4.75% |
| Oregon | 8% |
| Pennsylvania | 3.07% Pennsylvania Lottery winnings are exempt from PA tax for PA-resident winners of PA Lottery games purchased in-state; out-of-state lottery winnings are taxable. |
| Rhode Island | 5.99% |
| South Carolina | 6.4% |
| South Dakota | No state tax |
| Tennessee | No state tax No state income tax on lottery winnings. |
| Texas | No state tax |
| Utah | 4.55% |
| Vermont | 7.6% |
| Virginia | 4% |
| Washington | No state tax |
| Washington, D.C. | 10.75% |
| West Virginia | 4.82% |
| Wisconsin | 7.65% |
| Wyoming | No state tax |
On top of any state withholding, the IRS requires 24% federal withholding on prizes over $5,000 — and the top federal bracket is higher at filing time. Rates last reviewed 2026-01-15.
Questions, answered straight
How much tax is taken out of lottery winnings?
The IRS requires 24% federal withholding on prizes over $5,000, and large prizes are ultimately taxed at up to 37%. State withholding ranges from 0% to about 10.9% depending on where you live.
Which states don’t tax lottery winnings?
States with no tax on lottery winnings include Florida, Texas, Washington, Wyoming, South Dakota, Tennessee, New Hampshire, Nevada, and Alaska. California exempts California Lottery prizes.
Always verify your results through official lottery channels before claiming any prize. WonYet is not affiliated with Powerball, Mega Millions, or any lottery organization. · All lottery names and marks are trademarks of their respective owners.