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Lottery Tax Calculator

Last reviewed: April 11, 2026

Estimate lottery winnings after federal and state tax by state. Compare lump sum vs annuity, 24% withholding vs final tax, and see your take-home amount for the 2026 tax year.

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Updated for Refreshed for the 2026 tax year with clearer federal withholding examples and improved state comparison sections to help you better use the calculator.

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Lottery tax calculator

Estimate your take-home amount with federal, state, and local tax detail.

Financial summary

Enter values to see your estimate

Results will include take-home amount and full tax breakdown.

Take-Home Answer

How Much Do You Keep After Lottery Taxes?

The biggest drivers are federal brackets, state tax, and whether you take the cash option or annuity. For tax year 2026, the same prize can produce materially different take-home amounts depending on where tax applies.

Quick summary: Most winners focus on the 24% withholding rate, but the real answer is your final federal liability plus any state and local tax. Location and payout structure move the outcome more than most people expect.

Sources: IRS withholding rules + Lottery Valley national state model. Last reviewed: April 11, 2026. Tax year: 2026.

24%

Federal withholding

Prizes over $5,000

37%

Top federal rate

Large jackpots

$147,800.00

$1M state spread

Florida vs New York City

0% to 14.78%

State + local range

Best to worst modeled outcomes

Prize Amount

$10,000.00

Federal withholding: $2,400.00
Estimated federal tax: $1,000.00
State tax spread: $1,478.00
Keep range: $7,522.00 - $9,000.00

Best-case modeled outcome uses Florida (0%). Worst-case modeled outcome uses New York City.

Prize Amount

$100,000.00

Federal withholding: $24,000.00
Estimated federal tax: $16,914.00
State tax spread: $14,780.00
Keep range: $68,306.00 - $83,086.00

Best-case modeled outcome uses Florida (0%). Worst-case modeled outcome uses New York City.

Prize Amount

$1,000,000.00

Federal withholding: $240,000.00
Estimated federal tax: $327,020.25
State tax spread: $147,800.00
Keep range: $525,179.75 - $672,979.75

Best-case modeled outcome uses Florida (0%). Worst-case modeled outcome uses New York City.

Federal Tax Mechanics

Lottery Withholding vs Final Tax Owed

The IRS withholding rate is a prepayment, not your final bill. For tax year 2026, prizes over $5,000 are generally withheld at 24%, but final federal tax still follows progressive brackets up to 37%.

Quick summary: Withholding tells you what is taken out at payout. Final liability tells you what the IRS says you owe after your return is filed. For larger wins, those are usually not the same number.

Sources: IRS Publication 15-T, Publication 505, and bracket math. Last reviewed: April 11, 2026. Tax year: 2026.

At payout

Mandatory withholding

Federal withholding is designed to collect tax immediately, but it does not try to settle your entire marginal tax bill. It is a starting payment.

When you file

Final federal liability

Lottery winnings stack on top of other taxable income and settle through federal brackets. That is why large jackpots often create an extra balance due even after withholding.

Examples use single-filer federal bracket math for directional comparison.

Withholding compared with estimated final tax
Prize Amount	Federal Withholding	Estimated Final Federal Tax	Potential Extra Due	Why It Changes
$10,000.00	$2,400.00	$1,000.00	$0.00	Final tax follows progressive brackets, not just 24% withholding.
$100,000.00	$24,000.00	$16,914.00	$0.00	Final tax follows progressive brackets, not just 24% withholding.
$1,000,000.00	$240,000.00	$327,020.25	$87,020.25	Large jackpots usually reach the 37% federal tier.

State Comparison

Best and Worst States for After-Tax Lottery Winnings

The hub query set shows strong demand for state comparison, so this section surfaces the biggest national differences first. For 2026, the key divide is between 0% states, local-tax states, and no-lottery states that still tax out-of-state wins.

0% lottery-tax states

In-state lotteries and no state tax

States with local overlays

NY and MD in the core model

No-lottery states

Out-of-state winnings still matter

$147,800.00

$1M spread

Florida vs New York City

Based on Lottery Valley's 2026 state calculator data, including zero-tax, local-tax, and no-lottery-state treatment.

Best states for take-home pay

California
0% state tax
No recurring local layer in the core model
Florida
0% state tax
No recurring local layer in the core model
Texas
0% state tax
No recurring local layer in the core model
Washington
0% state tax
No recurring local layer in the core model
Wyoming
0% state tax
No recurring local layer in the core model

Highest-burden states

New York
State + local tax
NYC adds 3.88%; Yonkers adds 1.83%
Hawaii
Out-of-state winnings only
No in-state lottery; compare home-state filing treatment
District of Columbia
Progressive state tax
No recurring local layer in the core model
Minnesota
Progressive state tax
No recurring local layer in the core model
Vermont
Progressive state tax
No recurring local layer in the core model

States where local tax changes the answer

New York
State + local tax
NYC adds 3.88%; Yonkers adds 1.83%
Maryland
State + local tax
County and city rates can add about 2.25% to 3.20%
Ohio
State + local tax
Columbus 2.50% | Cleveland 2.50%

States without lotteries

Hawaii
Out-of-state winnings only
No in-state lottery; compare home-state filing treatment
Alabama
Out-of-state winnings only
No in-state lottery; compare home-state filing treatment
Utah
Out-of-state winnings only
No in-state lottery; compare home-state filing treatment
Alaska
No lottery, no state tax
No in-state lottery; compare home-state filing treatment
Nevada
No lottery, no state tax
No in-state lottery; compare home-state filing treatment

Payout Format

Lump Sum vs Annuity After Taxes

Lump-sum queries already show up in GSC, so the hub needs a dedicated answer. The key difference is timing: a lump sum concentrates income into one tax year, while annuity payments settle tax gradually over time.

Example models a $100 million advertised jackpot in a 0% state and ignores inflation, investment returns, and future law changes.

Worked example comparing payout formats
Payout Option	Taxable Prize	Estimated Federal Tax	State Tax	Estimated Net
Lump sum cash option	$50,000,000.00	$18,457,020.25	$0.00	$31,542,979.75
30-year annuity	$3,333,333.33 / year	$1,190,353.58 / year	$0.00 / year	$2,142,979.75 / year

Game-Specific Queries

Powerball vs Mega Millions Tax Treatment

Powerball and Mega Millions attract separate query demand, but the tax answer is simpler than most searchers expect. Federal and state tax rules do not change based on game brand.

What stays the same

Federal withholding still starts at 24% on prizes over $5,000.
Final federal tax still settles through the same brackets.
State and local tax still depend on where the win is taxed.

What actually changes

Advertised jackpot size and cash option size.
How often the game runs and how quickly jackpots grow.
The magnitude of the tax bill because the prize itself is different.

Prize Scenarios

Lottery Tax Examples by Prize Amount

Examples work better than generic ranges for head-term users, so this section shows the same national comparison logic at multiple prize sizes. These are directional scenarios using 2026 federal math and a best-versus-worst state spread.

Best case uses Florida; worst case uses New York City. Examples are directional and do not include every personal filing factor.

National prize scenarios
Prize Amount	Federal Withholding	Estimated Final Federal Tax	State Spread	Take-Home Range
$1,000.00	$0.00	$100.00	$147.80	$752.20 - $900.00
$100,000.00	$24,000.00	$16,914.00	$14,780.00	$68,306.00 - $83,086.00
$1,000,000.00	$240,000.00	$327,020.25	$147,800.00	$525,179.75 - $672,979.75
$50,000,000.00	$12,000,000.00	$18,457,020.25	$7,390,000.00	$24,152,979.75 - $31,542,979.75

All States

Lottery Tax Rates by State

This is the national comparison layer for the state calculator program. It combines zero-tax states, local-tax states, and no-lottery states into one table so users can scan the landscape before drilling into a state page.

Updated for tax year 2026. Representative resident treatment is shown here. Local-tax overlays and no-lottery-state nuances are detailed on each state page.

Display uses representative resident treatment and notes local or no-lottery nuances where material.

State: New York
Representative Rate: 4.00%-10.90%
Treatment: State + local tax
Local / Special Note: NYC adds 3.88%; Yonkers adds 1.83%
Scope: State residents; local layer varies by city

State: Hawaii
Representative Rate: 1.40%-11.00%
Treatment: Out-of-state winnings only
Local / Special Note: No in-state lottery; compare home-state filing treatment
Scope: Resident taxes on tickets won in another state

State: District of Columbia
Representative Rate: 4.00%-10.75%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Minnesota
Representative Rate: 5.35%-9.85%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Vermont
Representative Rate: 3.35%-8.75%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: New Jersey
Representative Rate: Up to 8.00%
Treatment: Tiered state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Oregon
Representative Rate: 8.00%
Treatment: 8.00%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Wisconsin
Representative Rate: 3.50%-7.65%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Maine
Representative Rate: 5.80%-7.15%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Connecticut
Representative Rate: 2.00%-6.99%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Delaware
Representative Rate: 2.20%-6.60%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Maryland
Representative Rate: 2.00%-6.50%
Treatment: State + local tax
Local / Special Note: County and city rates can add about 2.25% to 3.20%
Scope: Resident state + county/city treatment

State: South Carolina
Representative Rate: 6.30%
Treatment: 6.30%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Rhode Island
Representative Rate: 3.75%-5.99%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Montana
Representative Rate: 4.70%-5.90%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: New Mexico
Representative Rate: 1.50%-5.90%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Virginia
Representative Rate: 2.00%-5.75%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Kansas
Representative Rate: 3.10%-5.70%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Idaho
Representative Rate: 5.30%
Treatment: 5.30%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Nebraska
Representative Rate: 2.46%-5.20%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Georgia
Representative Rate: 5.19%
Treatment: 5.19%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Alabama
Representative Rate: 2.00%-5.00%
Treatment: Out-of-state winnings only
Local / Special Note: No in-state lottery; compare home-state filing treatment
Scope: Resident taxes on tickets won in another state

State: Massachusetts
Representative Rate: 5.00% + 4.00% surtax
Treatment: 5.00% + 4.00% surtax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Illinois
Representative Rate: 4.95%
Treatment: 4.95%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: West Virginia
Representative Rate: 2.22%-4.82%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Oklahoma
Representative Rate: 0.25%-4.75%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Missouri
Representative Rate: 4.70%
Treatment: 4.70%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: North Carolina
Representative Rate: 4.50%
Treatment: 4.50%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Utah
Representative Rate: 4.50%
Treatment: Out-of-state winnings only
Local / Special Note: No in-state lottery; compare home-state filing treatment
Scope: Resident taxes on tickets won in another state

State: Colorado
Representative Rate: 4.40%
Treatment: 4.40%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Mississippi
Representative Rate: 0.00%-4.40%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Michigan
Representative Rate: 4.25%
Treatment: 4.25%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Kentucky
Representative Rate: 4.00%
Treatment: 4.00%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Arkansas
Representative Rate: 2.00%-3.90%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Iowa
Representative Rate: 3.80%
Treatment: 3.80%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Ohio
Representative Rate: 0.00%-3.13%
Treatment: State + local tax
Local / Special Note: Columbus 2.50% | Cleveland 2.50%
Scope: Check local overlays in the state calculator

State: Pennsylvania
Representative Rate: 3.07%
Treatment: 3.07%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Indiana
Representative Rate: 3.00%
Treatment: 3.00%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Louisiana
Representative Rate: 3.00%
Treatment: 3.00%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Arizona
Representative Rate: 2.50%
Treatment: 2.50%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: North Dakota
Representative Rate: 2.50%
Treatment: 2.50%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Alaska
Representative Rate: 0%
Treatment: No lottery, no state tax
Local / Special Note: No in-state lottery; compare home-state filing treatment
Scope: Resident taxes on tickets won in another state

State: California
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Florida
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Nevada
Representative Rate: 0%
Treatment: No lottery, no state tax
Local / Special Note: No in-state lottery; compare home-state filing treatment
Scope: Resident taxes on tickets won in another state

State: New Hampshire
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: South Dakota
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Tennessee
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Texas
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Washington
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Wyoming
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

Lottery tax rates and state treatment by state
State	Representative Rate	Treatment	Local / Special Note	Scope	Calculator
New York	4.00%-10.90%	State + local tax	NYC adds 3.88%; Yonkers adds 1.83%	State residents; local layer varies by city	View state page
Hawaii	1.40%-11.00%	Out-of-state winnings only	No in-state lottery; compare home-state filing treatment	Resident taxes on tickets won in another state	View state page
District of Columbia	4.00%-10.75%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Minnesota	5.35%-9.85%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Vermont	3.35%-8.75%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
New Jersey	Up to 8.00%	Tiered state tax	No recurring local layer in the core model	Resident state treatment	View state page
Oregon	8.00%	8.00%	No recurring local layer in the core model	Resident state treatment	View state page
Wisconsin	3.50%-7.65%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Maine	5.80%-7.15%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Connecticut	2.00%-6.99%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Delaware	2.20%-6.60%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Maryland	2.00%-6.50%	State + local tax	County and city rates can add about 2.25% to 3.20%	Resident state + county/city treatment	View state page
South Carolina	6.30%	6.30%	No recurring local layer in the core model	Resident state treatment	View state page
Rhode Island	3.75%-5.99%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Montana	4.70%-5.90%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
New Mexico	1.50%-5.90%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Virginia	2.00%-5.75%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Kansas	3.10%-5.70%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Idaho	5.30%	5.30%	No recurring local layer in the core model	Resident state treatment	View state page
Nebraska	2.46%-5.20%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Georgia	5.19%	5.19%	No recurring local layer in the core model	Resident state treatment	View state page
Alabama	2.00%-5.00%	Out-of-state winnings only	No in-state lottery; compare home-state filing treatment	Resident taxes on tickets won in another state	View state page
Massachusetts	5.00% + 4.00% surtax	5.00% + 4.00% surtax	No recurring local layer in the core model	Resident state treatment	View state page
Illinois	4.95%	4.95%	No recurring local layer in the core model	Resident state treatment	View state page
West Virginia	2.22%-4.82%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Oklahoma	0.25%-4.75%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Missouri	4.70%	4.70%	No recurring local layer in the core model	Resident state treatment	View state page
North Carolina	4.50%	4.50%	No recurring local layer in the core model	Resident state treatment	View state page
Utah	4.50%	Out-of-state winnings only	No in-state lottery; compare home-state filing treatment	Resident taxes on tickets won in another state	View state page
Colorado	4.40%	4.40%	No recurring local layer in the core model	Resident state treatment	View state page
Mississippi	0.00%-4.40%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Michigan	4.25%	4.25%	No recurring local layer in the core model	Resident state treatment	View state page
Kentucky	4.00%	4.00%	No recurring local layer in the core model	Resident state treatment	View state page
Arkansas	2.00%-3.90%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Iowa	3.80%	3.80%	No recurring local layer in the core model	Resident state treatment	View state page
Ohio	0.00%-3.13%	State + local tax	Columbus 2.50% \| Cleveland 2.50%	Check local overlays in the state calculator	View state page
Pennsylvania	3.07%	3.07%	No recurring local layer in the core model	Resident state treatment	View state page
Indiana	3.00%	3.00%	No recurring local layer in the core model	Resident state treatment	View state page
Louisiana	3.00%	3.00%	No recurring local layer in the core model	Resident state treatment	View state page
Arizona	2.50%	2.50%	No recurring local layer in the core model	Resident state treatment	View state page
North Dakota	2.50%	2.50%	No recurring local layer in the core model	Resident state treatment	View state page
Alaska	0%	No lottery, no state tax	No in-state lottery; compare home-state filing treatment	Resident taxes on tickets won in another state	View state page
California	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
Florida	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
Nevada	0%	No lottery, no state tax	No in-state lottery; compare home-state filing treatment	Resident taxes on tickets won in another state	View state page
New Hampshire	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
South Dakota	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
Tennessee	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
Texas	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
Washington	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
Wyoming	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page

Related Lottery Tools

Check results and explore state lottery calculators

Use the national hub to compare tax outcomes, then move into state pages, live results, and ticket-checking tools.

Multi-state games

Multi-State Games

See Powerball, Mega Millions, and other cross-state lotteries in one place.

Results

Lottery numbers directory

Browse state results, draw history, and lottery details from the full numbers directory.

Calculator support

Lottery ticket checker

Use the ticket checker when the next step is verifying numbers against results.

Lottery Tax Guides

Go deeper on lottery tax questions

Use the support guide cluster for withholding, W-2G, nonresident rules, payout decisions, and state-vs-local tax questions that sit around the calculator.

Federal Tax Mechanics

Lottery Withholding vs Final Tax Liability

Understand why 24% withholding is only the starting point and why many winners still owe more at filing.

Payout Decisions

Lump Sum vs Annuity After Taxes

Compare how lump-sum and annuity lottery payouts change tax timing, federal brackets, and after-tax cash flow.

Reporting and Forms

Form W-2G Explained for Lottery Winners

See what Form W-2G means, when lottery winners receive one, and how it connects to withholding and tax filing.

State Comparison

How State and Local Taxes Change Lottery Take-Home

See why state and local tax can swing take-home winnings dramatically even when two winners claim the same prize.

Residency and Source Rules

Nonresident Lottery Taxes by State

Learn when the state where you won can tax the prize, when your home state can also tax it, and where credits matter.

Group Claims

Lottery Pool Taxes and Form 5754

Understand how taxes work when lottery winnings are split among multiple people and where Form 5754 fits.

FAQs

Lottery Tax FAQs

Short answers about withholding, by-state taxes, lump sum vs annuity, and after-tax lottery winnings for the 2026 tax year.

What's the difference between lottery tax withholding and actual tax owed?

Withholding is automatic 24% federal + state on prizes over $5,000, but actual owed can be higher (up to 37% federal) if brackets max out, requiring payment at filing. Shortfall common on big wins. On $1M, 24% federal leaves $760K pre-state; at 37%, owe extra $130K. Michigan example: +4.25% withheld, net ~$588K initially, more if bracket jumps. Refund if overwithheld. Estimate with our calculator and make estimated payments for large prizes to avoid penalties.

Which states have no tax on lottery winnings?

Ten states have zero state tax on lottery winnings: Alaska, California, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. These states don't impose income tax on prizes from their lotteries or others, so you only face federal taxes of 24-37%. However, if you're a resident of a taxing state, it may still tax you regardless of where you bought the ticket. For a $1M win as a California resident, you'd keep about $630K after federal taxes with no state bite. Confirm your residency at the time of purchase, as moving afterward doesn't erase your home state's claim. Check our calculator for your state's details.

Do you have to pay state taxes on lottery winnings?

Yes, most states tax lottery winnings as income, but 10 states—Alaska, California, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming—do not. Rates vary: flat like Illinois at 4.95%, or progressive with locals like New York up to 10.9% plus 3.88% in NYC. Both your residence state and ticket-purchase state can tax, with credits to offset double-dipping. For a $1M Michigan win (4.25% flat), expect about $588K after federal and state if you're a resident there. Verify both states' rules using our calculator before claiming.

Can you avoid lottery taxes by moving to another state?

No, you generally can't avoid taxes by moving after winning—your residency at the time of ticket purchase determines your home state's taxing rights, and it must be a legal resident before buying. Zero-tax states like Florida or California only benefit pre-existing residents; post-win moves don't retroactively exempt you. The ticket state always taxes its prizes. If you bought in New York as a non-resident, NY taxes at up to 10.9% plus locals, and your home state adds more with credits. For a $1M win, a Florida resident nets ~$630K; a New Yorker far less. Establish residency well before playing and use our tool to check dual impacts.

Do both your home state and the ticket state tax lottery winnings?

Yes, both your state of residence and the state where you bought the ticket can tax winnings, but most offer credits for taxes paid to the other state to avoid full double taxation. Nonresidents pay the ticket state's source tax, and residents pay home tax minus credit. For example, a Texas resident (zero tax) winning $1M in Illinois pays Illinois' 4.95% but nothing extra home. A Maryland resident winning out-of-state faces MD's up to 6.5% + 3.2% local minus credit. Always calculate both. Enter details in our calculator for accurate net after dual taxes.

What taxes apply if you win Powerball or Mega Millions out of state?

Powerball and Mega Millions follow the same rules: federal 24-37%, ticket state's source tax, and your residence state's tax with credits; no difference between games. Multi-state lotteries tax based on purchase state. A $1M Powerball ticket bought in Michigan (4.25%) by a California resident (zero) means MI withholds 4.25%, CA adds zero, netting ~$630K after federal. High-tax like NY purchase adds up to 10.9% + 3.88% NYC if applicable. Multi-state wins don't escape state taxes. Use our calculator specifying game, states, and amount for your scenario.

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Tax calculator disclaimer

Important limits for tax estimates

Lottery Valley publishes estimate-based tax tools for educational use. Before making any financial, legal, or payout decision, review the limits below and verify the current rules with official sources and qualified professionals.

Estimate limitations

These calculations are examples based on standard assumptions. Actual tax outcomes depend on filing status, income, deductions, residency details, and changes in federal or state law.

No tax or legal advice

Lottery Valley publishes educational information and estimate-based tools. Using this page does not create a legal, tax, accounting, or advisory relationship.

Verify current rules

Tax laws and withholding rules change. Verify current requirements with official sources and qualified professionals before acting on a large lottery-winning scenario.

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For meaningful decisions, work with a qualified CPA, tax attorney, or financial professional who can review your specific situation.

Questions or corrections? Contact hello@lotteryvalley.com.

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Sources & Verification

References & Sources

All estimates are based on authoritative government or tax-policy sources for tax year 2026.

Primary Sources for 2026 Tax Rates

Federal Tax Information

IRS Publication 505 (Tax Withholding and Estimated Tax, 2026)
irs.gov/publications/p505
IRS Publication 15-T (Federal Income Tax Withholding Methods, 2026)
irs.gov/forms-pubs/about-publication-15-t
IRS 2026 Inflation Adjustment Release
irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025
Tax Foundation Federal Bracket Summary
taxfoundation.org/data/all/federal/2026-tax-brackets/

State Tax Information

Tax Foundation (2026 State Income Tax Rates and Brackets)
taxfoundation.org/data/all/state/state-income-tax-rates/
Federation of Tax Administrators (State Tax Resources)
taxadmin.org

Lottery Tax Calculator

Last reviewed: April 11, 2026

Estimate lottery winnings after federal and state tax by state. Compare lump sum vs annuity, 24% withholding vs final tax, and see your take-home amount for the 2026 tax year.

Become a Member

Updated for Refreshed for the 2026 tax year with clearer federal withholding examples and improved state comparison sections to help you better use the calculator.

2 official sources reviewed

Review methodology Corrections policy Contact

Lottery tax calculator

Estimate your take-home amount with federal, state, and local tax detail.

Financial summary

Enter values to see your estimate

Results will include take-home amount and full tax breakdown.

Take-Home Answer

How Much Do You Keep After Lottery Taxes?

Sources: IRS withholding rules + Lottery Valley national state model. Last reviewed: April 11, 2026. Tax year: 2026.

24%

Federal withholding

Prizes over $5,000

37%

Top federal rate

Large jackpots

$147,800.00

$1M state spread

Florida vs New York City

0% to 14.78%

State + local range

Best to worst modeled outcomes

Prize Amount

$10,000.00

Federal withholding: $2,400.00
Estimated federal tax: $1,000.00
State tax spread: $1,478.00
Keep range: $7,522.00 - $9,000.00

Best-case modeled outcome uses Florida (0%). Worst-case modeled outcome uses New York City.

Prize Amount

$100,000.00

Federal withholding: $24,000.00
Estimated federal tax: $16,914.00
State tax spread: $14,780.00
Keep range: $68,306.00 - $83,086.00

Best-case modeled outcome uses Florida (0%). Worst-case modeled outcome uses New York City.

Prize Amount

$1,000,000.00

Federal withholding: $240,000.00
Estimated federal tax: $327,020.25
State tax spread: $147,800.00
Keep range: $525,179.75 - $672,979.75

Best-case modeled outcome uses Florida (0%). Worst-case modeled outcome uses New York City.

Federal Tax Mechanics

Lottery Withholding vs Final Tax Owed

The IRS withholding rate is a prepayment, not your final bill. For tax year 2026, prizes over $5,000 are generally withheld at 24%, but final federal tax still follows progressive brackets up to 37%.

Sources: IRS Publication 15-T, Publication 505, and bracket math. Last reviewed: April 11, 2026. Tax year: 2026.

At payout

Mandatory withholding

Federal withholding is designed to collect tax immediately, but it does not try to settle your entire marginal tax bill. It is a starting payment.

When you file

Final federal liability

Lottery winnings stack on top of other taxable income and settle through federal brackets. That is why large jackpots often create an extra balance due even after withholding.

Examples use single-filer federal bracket math for directional comparison.

Withholding compared with estimated final tax
Prize Amount	Federal Withholding	Estimated Final Federal Tax	Potential Extra Due	Why It Changes
$10,000.00	$2,400.00	$1,000.00	$0.00	Final tax follows progressive brackets, not just 24% withholding.
$100,000.00	$24,000.00	$16,914.00	$0.00	Final tax follows progressive brackets, not just 24% withholding.
$1,000,000.00	$240,000.00	$327,020.25	$87,020.25	Large jackpots usually reach the 37% federal tier.

State Comparison

Best and Worst States for After-Tax Lottery Winnings

0% lottery-tax states

In-state lotteries and no state tax

States with local overlays

NY and MD in the core model

No-lottery states

Out-of-state winnings still matter

$147,800.00

$1M spread

Florida vs New York City

Based on Lottery Valley's 2026 state calculator data, including zero-tax, local-tax, and no-lottery-state treatment.

Best states for take-home pay

California
0% state tax
No recurring local layer in the core model
Florida
0% state tax
No recurring local layer in the core model
Texas
0% state tax
No recurring local layer in the core model
Washington
0% state tax
No recurring local layer in the core model
Wyoming
0% state tax
No recurring local layer in the core model

Highest-burden states

New York
State + local tax
NYC adds 3.88%; Yonkers adds 1.83%
Hawaii
Out-of-state winnings only
No in-state lottery; compare home-state filing treatment
District of Columbia
Progressive state tax
No recurring local layer in the core model
Minnesota
Progressive state tax
No recurring local layer in the core model
Vermont
Progressive state tax
No recurring local layer in the core model

States where local tax changes the answer

New York
State + local tax
NYC adds 3.88%; Yonkers adds 1.83%
Maryland
State + local tax
County and city rates can add about 2.25% to 3.20%
Ohio
State + local tax
Columbus 2.50% | Cleveland 2.50%

States without lotteries

Hawaii
Out-of-state winnings only
No in-state lottery; compare home-state filing treatment
Alabama
Out-of-state winnings only
No in-state lottery; compare home-state filing treatment
Utah
Out-of-state winnings only
No in-state lottery; compare home-state filing treatment
Alaska
No lottery, no state tax
No in-state lottery; compare home-state filing treatment
Nevada
No lottery, no state tax
No in-state lottery; compare home-state filing treatment

Payout Format

Lump Sum vs Annuity After Taxes

Example models a $100 million advertised jackpot in a 0% state and ignores inflation, investment returns, and future law changes.

Worked example comparing payout formats
Payout Option	Taxable Prize	Estimated Federal Tax	State Tax	Estimated Net
Lump sum cash option	$50,000,000.00	$18,457,020.25	$0.00	$31,542,979.75
30-year annuity	$3,333,333.33 / year	$1,190,353.58 / year	$0.00 / year	$2,142,979.75 / year

Game-Specific Queries

Powerball vs Mega Millions Tax Treatment

Powerball and Mega Millions attract separate query demand, but the tax answer is simpler than most searchers expect. Federal and state tax rules do not change based on game brand.

What stays the same

Federal withholding still starts at 24% on prizes over $5,000.
Final federal tax still settles through the same brackets.
State and local tax still depend on where the win is taxed.

What actually changes

Advertised jackpot size and cash option size.
How often the game runs and how quickly jackpots grow.
The magnitude of the tax bill because the prize itself is different.

Prize Scenarios

Lottery Tax Examples by Prize Amount

Best case uses Florida; worst case uses New York City. Examples are directional and do not include every personal filing factor.

National prize scenarios
Prize Amount	Federal Withholding	Estimated Final Federal Tax	State Spread	Take-Home Range
$1,000.00	$0.00	$100.00	$147.80	$752.20 - $900.00
$100,000.00	$24,000.00	$16,914.00	$14,780.00	$68,306.00 - $83,086.00
$1,000,000.00	$240,000.00	$327,020.25	$147,800.00	$525,179.75 - $672,979.75
$50,000,000.00	$12,000,000.00	$18,457,020.25	$7,390,000.00	$24,152,979.75 - $31,542,979.75

All States

Lottery Tax Rates by State

Updated for tax year 2026. Representative resident treatment is shown here. Local-tax overlays and no-lottery-state nuances are detailed on each state page.

Display uses representative resident treatment and notes local or no-lottery nuances where material.

State: New York
Representative Rate: 4.00%-10.90%
Treatment: State + local tax
Local / Special Note: NYC adds 3.88%; Yonkers adds 1.83%
Scope: State residents; local layer varies by city

State: Hawaii
Representative Rate: 1.40%-11.00%
Treatment: Out-of-state winnings only
Local / Special Note: No in-state lottery; compare home-state filing treatment
Scope: Resident taxes on tickets won in another state

State: District of Columbia
Representative Rate: 4.00%-10.75%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Minnesota
Representative Rate: 5.35%-9.85%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Vermont
Representative Rate: 3.35%-8.75%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: New Jersey
Representative Rate: Up to 8.00%
Treatment: Tiered state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Oregon
Representative Rate: 8.00%
Treatment: 8.00%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Wisconsin
Representative Rate: 3.50%-7.65%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Maine
Representative Rate: 5.80%-7.15%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Connecticut
Representative Rate: 2.00%-6.99%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Delaware
Representative Rate: 2.20%-6.60%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Maryland
Representative Rate: 2.00%-6.50%
Treatment: State + local tax
Local / Special Note: County and city rates can add about 2.25% to 3.20%
Scope: Resident state + county/city treatment

State: South Carolina
Representative Rate: 6.30%
Treatment: 6.30%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Rhode Island
Representative Rate: 3.75%-5.99%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Montana
Representative Rate: 4.70%-5.90%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: New Mexico
Representative Rate: 1.50%-5.90%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Virginia
Representative Rate: 2.00%-5.75%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Kansas
Representative Rate: 3.10%-5.70%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Idaho
Representative Rate: 5.30%
Treatment: 5.30%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Nebraska
Representative Rate: 2.46%-5.20%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Georgia
Representative Rate: 5.19%
Treatment: 5.19%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Alabama
Representative Rate: 2.00%-5.00%
Treatment: Out-of-state winnings only
Local / Special Note: No in-state lottery; compare home-state filing treatment
Scope: Resident taxes on tickets won in another state

State: Massachusetts
Representative Rate: 5.00% + 4.00% surtax
Treatment: 5.00% + 4.00% surtax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Illinois
Representative Rate: 4.95%
Treatment: 4.95%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: West Virginia
Representative Rate: 2.22%-4.82%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Oklahoma
Representative Rate: 0.25%-4.75%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Missouri
Representative Rate: 4.70%
Treatment: 4.70%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: North Carolina
Representative Rate: 4.50%
Treatment: 4.50%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Utah
Representative Rate: 4.50%
Treatment: Out-of-state winnings only
Local / Special Note: No in-state lottery; compare home-state filing treatment
Scope: Resident taxes on tickets won in another state

State: Colorado
Representative Rate: 4.40%
Treatment: 4.40%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Mississippi
Representative Rate: 0.00%-4.40%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Michigan
Representative Rate: 4.25%
Treatment: 4.25%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Kentucky
Representative Rate: 4.00%
Treatment: 4.00%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Arkansas
Representative Rate: 2.00%-3.90%
Treatment: Progressive state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Iowa
Representative Rate: 3.80%
Treatment: 3.80%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Ohio
Representative Rate: 0.00%-3.13%
Treatment: State + local tax
Local / Special Note: Columbus 2.50% | Cleveland 2.50%
Scope: Check local overlays in the state calculator

State: Pennsylvania
Representative Rate: 3.07%
Treatment: 3.07%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Indiana
Representative Rate: 3.00%
Treatment: 3.00%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Louisiana
Representative Rate: 3.00%
Treatment: 3.00%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Arizona
Representative Rate: 2.50%
Treatment: 2.50%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: North Dakota
Representative Rate: 2.50%
Treatment: 2.50%
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Alaska
Representative Rate: 0%
Treatment: No lottery, no state tax
Local / Special Note: No in-state lottery; compare home-state filing treatment
Scope: Resident taxes on tickets won in another state

State: California
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Florida
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Nevada
Representative Rate: 0%
Treatment: No lottery, no state tax
Local / Special Note: No in-state lottery; compare home-state filing treatment
Scope: Resident taxes on tickets won in another state

State: New Hampshire
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: South Dakota
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Tennessee
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Texas
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Washington
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

State: Wyoming
Representative Rate: 0%
Treatment: 0% state tax
Local / Special Note: No recurring local layer in the core model
Scope: Resident state treatment

Lottery tax rates and state treatment by state
State	Representative Rate	Treatment	Local / Special Note	Scope	Calculator
New York	4.00%-10.90%	State + local tax	NYC adds 3.88%; Yonkers adds 1.83%	State residents; local layer varies by city	View state page
Hawaii	1.40%-11.00%	Out-of-state winnings only	No in-state lottery; compare home-state filing treatment	Resident taxes on tickets won in another state	View state page
District of Columbia	4.00%-10.75%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Minnesota	5.35%-9.85%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Vermont	3.35%-8.75%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
New Jersey	Up to 8.00%	Tiered state tax	No recurring local layer in the core model	Resident state treatment	View state page
Oregon	8.00%	8.00%	No recurring local layer in the core model	Resident state treatment	View state page
Wisconsin	3.50%-7.65%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Maine	5.80%-7.15%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Connecticut	2.00%-6.99%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Delaware	2.20%-6.60%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Maryland	2.00%-6.50%	State + local tax	County and city rates can add about 2.25% to 3.20%	Resident state + county/city treatment	View state page
South Carolina	6.30%	6.30%	No recurring local layer in the core model	Resident state treatment	View state page
Rhode Island	3.75%-5.99%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Montana	4.70%-5.90%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
New Mexico	1.50%-5.90%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Virginia	2.00%-5.75%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Kansas	3.10%-5.70%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Idaho	5.30%	5.30%	No recurring local layer in the core model	Resident state treatment	View state page
Nebraska	2.46%-5.20%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Georgia	5.19%	5.19%	No recurring local layer in the core model	Resident state treatment	View state page
Alabama	2.00%-5.00%	Out-of-state winnings only	No in-state lottery; compare home-state filing treatment	Resident taxes on tickets won in another state	View state page
Massachusetts	5.00% + 4.00% surtax	5.00% + 4.00% surtax	No recurring local layer in the core model	Resident state treatment	View state page
Illinois	4.95%	4.95%	No recurring local layer in the core model	Resident state treatment	View state page
West Virginia	2.22%-4.82%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Oklahoma	0.25%-4.75%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Missouri	4.70%	4.70%	No recurring local layer in the core model	Resident state treatment	View state page
North Carolina	4.50%	4.50%	No recurring local layer in the core model	Resident state treatment	View state page
Utah	4.50%	Out-of-state winnings only	No in-state lottery; compare home-state filing treatment	Resident taxes on tickets won in another state	View state page
Colorado	4.40%	4.40%	No recurring local layer in the core model	Resident state treatment	View state page
Mississippi	0.00%-4.40%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Michigan	4.25%	4.25%	No recurring local layer in the core model	Resident state treatment	View state page
Kentucky	4.00%	4.00%	No recurring local layer in the core model	Resident state treatment	View state page
Arkansas	2.00%-3.90%	Progressive state tax	No recurring local layer in the core model	Resident state treatment	View state page
Iowa	3.80%	3.80%	No recurring local layer in the core model	Resident state treatment	View state page
Ohio	0.00%-3.13%	State + local tax	Columbus 2.50% \| Cleveland 2.50%	Check local overlays in the state calculator	View state page
Pennsylvania	3.07%	3.07%	No recurring local layer in the core model	Resident state treatment	View state page
Indiana	3.00%	3.00%	No recurring local layer in the core model	Resident state treatment	View state page
Louisiana	3.00%	3.00%	No recurring local layer in the core model	Resident state treatment	View state page
Arizona	2.50%	2.50%	No recurring local layer in the core model	Resident state treatment	View state page
North Dakota	2.50%	2.50%	No recurring local layer in the core model	Resident state treatment	View state page
Alaska	0%	No lottery, no state tax	No in-state lottery; compare home-state filing treatment	Resident taxes on tickets won in another state	View state page
California	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
Florida	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
Nevada	0%	No lottery, no state tax	No in-state lottery; compare home-state filing treatment	Resident taxes on tickets won in another state	View state page
New Hampshire	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
South Dakota	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
Tennessee	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
Texas	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
Washington	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page
Wyoming	0%	0% state tax	No recurring local layer in the core model	Resident state treatment	View state page

Related Lottery Tools

Check results and explore state lottery calculators

Use the national hub to compare tax outcomes, then move into state pages, live results, and ticket-checking tools.

Multi-state games

Multi-State Games

See Powerball, Mega Millions, and other cross-state lotteries in one place.

Results

Lottery numbers directory

Browse state results, draw history, and lottery details from the full numbers directory.

Calculator support

Lottery ticket checker

Use the ticket checker when the next step is verifying numbers against results.

Lottery Tax Guides

Go deeper on lottery tax questions

Use the support guide cluster for withholding, W-2G, nonresident rules, payout decisions, and state-vs-local tax questions that sit around the calculator.

Federal Tax Mechanics

Lottery Withholding vs Final Tax Liability

Understand why 24% withholding is only the starting point and why many winners still owe more at filing.

Payout Decisions

Lump Sum vs Annuity After Taxes

Compare how lump-sum and annuity lottery payouts change tax timing, federal brackets, and after-tax cash flow.

Reporting and Forms

Form W-2G Explained for Lottery Winners

See what Form W-2G means, when lottery winners receive one, and how it connects to withholding and tax filing.

State Comparison

How State and Local Taxes Change Lottery Take-Home

See why state and local tax can swing take-home winnings dramatically even when two winners claim the same prize.

Residency and Source Rules

Nonresident Lottery Taxes by State

Learn when the state where you won can tax the prize, when your home state can also tax it, and where credits matter.

Group Claims

Lottery Pool Taxes and Form 5754

Understand how taxes work when lottery winnings are split among multiple people and where Form 5754 fits.

FAQs

Lottery Tax FAQs

Short answers about withholding, by-state taxes, lump sum vs annuity, and after-tax lottery winnings for the 2026 tax year.

What's the difference between lottery tax withholding and actual tax owed?

Which states have no tax on lottery winnings?

Do you have to pay state taxes on lottery winnings?

Can you avoid lottery taxes by moving to another state?

Do both your home state and the ticket state tax lottery winnings?

What taxes apply if you win Powerball or Mega Millions out of state?

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Tax calculator disclaimer

Important limits for tax estimates

Estimate limitations

These calculations are examples based on standard assumptions. Actual tax outcomes depend on filing status, income, deductions, residency details, and changes in federal or state law.

No tax or legal advice

Lottery Valley publishes educational information and estimate-based tools. Using this page does not create a legal, tax, accounting, or advisory relationship.

Verify current rules

Tax laws and withholding rules change. Verify current requirements with official sources and qualified professionals before acting on a large lottery-winning scenario.

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For meaningful decisions, work with a qualified CPA, tax attorney, or financial professional who can review your specific situation.

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Sources & Verification

References & Sources

All estimates are based on authoritative government or tax-policy sources for tax year 2026.

Primary Sources for 2026 Tax Rates

Federal Tax Information

IRS Publication 505 (Tax Withholding and Estimated Tax, 2026)
irs.gov/publications/p505
IRS Publication 15-T (Federal Income Tax Withholding Methods, 2026)
irs.gov/forms-pubs/about-publication-15-t
IRS 2026 Inflation Adjustment Release
irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025
Tax Foundation Federal Bracket Summary
taxfoundation.org/data/all/federal/2026-tax-brackets/

State Tax Information

Tax Foundation (2026 State Income Tax Rates and Brackets)
taxfoundation.org/data/all/state/state-income-tax-rates/
Federation of Tax Administrators (State Tax Resources)
taxadmin.org