Estimate your after-tax lottery winnings across all 50 US states with our 2025 lottery tax calculator. Features updated federal rates (24% withholding, up to 37% liability) and state taxes (0% to 14.78% with local rates), including Powerball prize estimates, with instant payout calculator results for lump sum or annuity options
Tax breakdowns for Powerball prizes by state.
Compare lump sum vs. annuity take-home amounts.
Includes 50-state rates and local taxes (e.g., NYC, MD).
Quick estimates showing taxes withheld immediately plus liability estimates
Enter the cash value amount. This lump sum will be taxed upfront.
Enter your details to see your after-tax winnings
Ten states don't tax lottery winnings, meaning you'll only pay federal taxes. This can save you up to 14.78% compared to the highest-tax jurisdictions.
| Prize Amount | Highest Tax State | Zero Tax States | Tax Savings |
|---|---|---|---|
$100,000.00 | NYC: $14,780.00 state tax | $0 state tax | $14,780.00 |
$1,000,000.00 | NYC: $147,800.00 state tax | $0 state tax | $147,800.00 |
$100,000,000.00 | NYC: $14,780,000.00 state tax | $0 state tax | $14,780,000.00 |
Some states base lottery taxation on where you purchased the ticket, while others base it on your state of residence at the time of claiming. Consider establishing residency in a zero-tax state before claiming large winnings.
⚠️ Important Legal Notice
Residency changes must be genuine and comply with state and IRS rules to avoid audits or penalties. Many states have strict domicile requirements (such as 183-day rules) and scrutinize "residency shopping." Consult with a qualified tax attorney before attempting any residency planning.
The ten zero-tax states represent a significant tax planning opportunity for lottery winners, potentially saving millions on large jackpots compared to high-tax jurisdictions.
Understanding federal tax changes and bracket adjustments is essential for calculating your lottery tax liability. Here are the key updates for 2025.
Many lottery winners are confused by the difference between immediate tax withholding and their actual tax liability when filing returns. Our enhanced calculator clarifies both.
24% automatic withholding from lottery winnings over $5,000. This money is taken immediately when you claim your prize.
Example:
$100k win = $24,000 withheld immediately
$3k win = $0 withheld (under threshold)
Key Point: Withholding is just a down payment on your taxes, not your final tax bill.
Your actual tax owed based on progressive brackets (10%-37%) and your total income when filing your tax return.
Same Examples:
$100k win = ~$32,000 total liability
$3k win = ~$360 liability (even with $0 withholding)
Key Point: You may owe additional taxes beyond withholding, or get a refund if withholding exceeded liability.
Pro Tip: Even if no taxes are withheld from your small win, set aside 10-15% for taxes to avoid surprises when filing.
| Tax Rate | Single Filers | Married Filing Jointly |
|---|---|---|
37% | $626,350.00+ | $750,000.00+ |
35% | $250,525.00 - $626,350.00 | $500,000.00 - $750,000.00 |
32% | $197,300.00 - $250,525.00 | $394,600.00 - $500,000.00 |
24% | $103,350.00 - $197,300.00 | $206,675.00 - $394,600.00 |
22% | $48,475.00 - $103,350.00 | $96,950.00 - $206,675.00 |
12% | $11,925.00 - $48,475.00 | $23,850.00 - $96,950.00 |
10% | $0.00 - $11,925.00 | $0.00 - $23,850.00 |
Your lottery winnings are taxed at multiple rates. The first $103,350 (single) or $206,675 (married) is taxed at 24%, with amounts above these thresholds facing higher rates. This means large lottery wins will be subject to the top 37% federal tax rate.
Tax brackets have been adjusted upward for inflation by approximately 3.2%. This means slightly less federal tax on the same jackpot amount compared to 2024, though the effect is minimal for large lottery winnings that reach the top tax bracket.
Our enhanced calculator offers two modes to match your needs: Simple mode for quick estimates and Advanced mode for precise tax calculations using progressive brackets and filing status.
Uses conservative tax rate estimates to quickly calculate your likely tax liability. Shows both immediate withholding and estimated final taxes, including liability estimates for wins under withholding thresholds where no taxes are initially taken out.
Example: $10k win shows $0 withholding but ~$1,200 liability estimate for tax planning purposes.
Uses actual 2025 progressive tax brackets (10%-37%) and your selected filing status to calculate precise federal tax liability. Factors in your total income impact and provides exact bracket-by-bracket calculations for maximum accuracy.
Example: $1M win shows exact taxes across multiple brackets: $1,192 (10%) + $4,386 (12%) + $12,073 (22%) + $22,548 (24%) + etc.
| Feature | Simple Mode | Advanced Mode |
|---|---|---|
| Calculation Method | Conservative estimates | Progressive tax brackets |
| Filing Status | Not required | Required for accuracy |
| Small Wins (<$5k) | Shows liability estimate | Precise bracket calculation |
| Best For | Quick planning | Precise tax preparation |
The amount of tax you pay on lottery winnings depends on the prize amount, your state of residence, and your filing status. Here's exactly how much you'll pay at different winning levels.
| Prize Amount | Federal Tax | State Tax Range | After-Tax Winnings | Effective Tax Rate |
|---|---|---|---|---|
$10,000 Modest | $2,400 - $3,700 24% withholding, up to 37% final | $0 - $1,478 0% (FL, TX) to 14.78% (NYC) | $5,322 - $7,600 Depends on your state | 24% - 52% |
$100,000 Significant | $24,000 - $32,000 24% withholding, higher brackets apply | $0 - $14,780 State taxes vary significantly | $53,220 - $76,000 $22,780 difference by state | 24% - 47% |
$1,000,000 Major | $370,000 37% top federal bracket | $0 - $147,800 Massive state variation | $482,200 - $630,000 $147,800 difference by state | 37% - 52% |
On a $1 million lottery win, choosing to live in Florida (0% tax) versus New York City (14.78% combined rate) means keeping $147,800 more of your winnings. For larger jackpots, this difference becomes even more substantial—potentially millions in tax savings.
Automatically deducted from lottery winnings over $5,000. This is just the start— your actual federal tax liability will likely be higher.
Large lottery wins push you into the highest tax bracket (37%). You'll owe additional taxes beyond the 24% withholding when you file your return.
Florida, Texas, Wyoming, and 7 other states don't tax lottery winnings. Moving before claiming can save hundreds of thousands.
New York (10.9%) plus NYC local tax (3.876%) creates the highest combined rate at 14.78%. Some jurisdictions also add county-level taxes.
| Prize Amount | Federal Tax | Best State (0%) | Worst State (NYC) | Total Tax Range |
|---|---|---|---|---|
| $50,000 | $12,000-$16,000 | $12,000-$16,000 | $19,390-$23,390 | 24%-47% |
| $500,000 | $185,000 | $185,000 | $258,900 | 37%-52% |
| $10 Million | $3,700,000 | $3,700,000 | $5,178,000 | 37%-52% |
| $100 Million | $37,000,000 | $37,000,000 | $51,780,000 | 37%-52% |
Note: Federal tax ranges show withholding (24%) to maximum liability (37%). State taxes vary from 0% (FL, TX, etc.) to 14.78% (NYC residents). Estimates assume winnings as primary income; total tax liability depends on your full adjusted gross income (AGI). Use our calculator above for precise estimates.
Many people confuse "lottery payout calculators" with prize amount calculators. Our tool shows you the reality: how much you actually keep after taxes, not just the advertised jackpot amount.
The harsh truth about lottery payouts becomes clear when examining real numbers. A $100 million advertised jackpot shrinks due to the cash value discount and taxation.
Only 24-32% of the headline
Still only 24-32% of the headline
Regardless of jackpot size, you'll receive roughly 40-50% as cash value, then lose up to 37% to federal taxes and up to 14.78% to state taxes. This consistent ratio reflects the annuity discount and progressive tax structure, with the only variable being your state's tax policy.
Note: Cash value percentages vary based on current interest rates and bond market conditions. Always check official lottery estimates for the most current cash value before making decisions.
Our enhanced calculator is both: a comprehensive payout calculator AND advanced tax calculator
We show you exactly how much you'll keep from your lottery winnings, factoring in all taxes, withholding, local jurisdictions, and the difference between advertised prizes and actual cash payouts.
The advertised jackpot is the 30-year annuity value. Cash payout is typically 40-50%, depending on interest rates.
24% is the initial federal withholding; your actual federal tax can reach 37%, plus 0-14.78% state tax, based on your income and residence.
Our tool provides your real after-tax winnings after federal, state, and local taxes, plus cash value adjustments.
Relocating from NYC (14.78% combined tax) to Florida (0% state tax) can save millions on large jackpots.
See exactly how much you'd pay in taxes on recent Powerball and Mega Millions jackpots. These real-world examples show the tax impact of major lottery wins across different states.
The past few years have seen record-breaking jackpots that demonstrate the massive impact of state tax policy on lottery winnings. Consider how location affects these historic wins.
July 2023 • California Winner
Cash value: ~$558M
$51M lost to state taxes
vs. zero-tax states
January 2023 • Maine Winner
Cash value: ~$675M
$60M lost to state taxes
vs. zero-tax states
Whether you win Powerball or Mega Millions, the math remains consistent across all billion-dollar jackpots: you'll receive approximately 40-50% as cash value, then lose37% to federal taxes and up to 14.78% to state taxes.
This means your actual after-tax winnings range from 29% to 38% of the advertised jackpot, depending entirely on your state of residence when you claim the prize.
Understanding the complete taxation process helps explain why billion-dollar jackpots shrink so dramatically. Both Powerball and Mega Millions follow identical tax structures.
The advertised jackpot assumes 30-year annuity payments. Lump sum cash value is typically 40-50% of the headline.
$1B → $400M-$500M cash
50-60% immediate reduction
24% withholding occurs immediately. Final federal liability reaches 37% for large jackpots due to top tax bracket.
$500M × 37% = $185M
Federal tax liability
State taxes vary dramatically by location, from 0% in nine states to 14.78% in high-tax jurisdictions like NYC.
0% to 14.78%
$0 to $73.9M additional
Final Result: $1 Billion → $289M to $378M after-tax winnings (29-38%)
Based on ~$250M cash value (50%), after $92.5M federal taxes (37%). State taxes create a $37M difference between best and worst locations.
| State/Location | Tax Rate | After-Tax Winnings | vs Best States |
|---|---|---|---|
| California, Florida, Texas, Wyoming | 0% | $157.5M | — |
| Indiana | 3.23% | $149.2M | -$8.3M |
| Illinois | 4.95% | $145.1M | -$12.4M |
| Arizona | 5% | $144.9M | -$12.6M |
| Maine | 7% | $140.8M | -$16.7M |
| Oregon | 9.9% | $132.6M | -$24.9M |
| New Jersey | 10.75% | $130.4M | -$27.1M |
| New York State | 10.9% | $130M | -$27.5M |
| California | 0% | $157.5M | — |
| New York City | 14.78% | $120.5M | -$37M |
Simply establishing residency in California or Texas before claiming a $500M jackpot saves up to $37M compared to claiming in New York City. This difference could fund a lifetime of luxury for multiple generations.
Despite their different brands and marketing, Powerball and Mega Millions have identical tax implications. This means our calculator works perfectly for both games and produces the same results for equivalent prize amounts.
The IRS treats all lottery winnings as ordinary income, regardless of the specific game. Both Powerball and Mega Millions face the same 24% withholding rate and final tax rates up to 37%.
State taxes depend on your residency when claiming, not the game type. A $500M Powerball win and $500M Mega Millions win face identical state tax obligations.
The only factor that matters: Prize amount and your location when claiming
Whether you win the Powerball jackpot in California or the Mega Millions jackpot in California, your tax obligation will be identical for the same prize amount.
Compare lottery tax rates and actual payout amounts across all 50 US states. See how much you'd actually keep from a $1M lottery win after all taxes.
| State | Tax Rate | State Tax on $1M | Total Tax (37% Fed + State) | After-Tax Winnings | Calculator |
|---|---|---|---|---|---|
| New York (NYC Residents)Highest Overall | 14.78% | $147,800.00 | 47.5% ($474,820.25) | $525,179.75 | Calculate → |
| Hawaii | 11.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
| New York | 10.90% | $109,000.00 | 43.6% ($436,020.25) | $563,979.75 | Calculate → |
| Minnesota | 9.85% | $98,500.00 | 42.6% ($425,520.25) | $574,479.75 | Calculate → |
| Vermont | 8.75% | $87,500.00 | 41.5% ($414,520.25) | $585,479.75 | Calculate → |
| District Of Columbia | 8.50% | $85,000.00 | 41.2% ($412,020.25) | $587,979.75 | Calculate → |
| Oregon | 8.00% | $80,000.00 | 40.7% ($407,020.25) | $592,979.75 | Calculate → |
| Wisconsin | 7.65% | $76,500.00 | 40.4% ($403,520.25) | $596,479.75 | Calculate → |
| Maine | 7.15% | $71,500.00 | 39.9% ($398,520.25) | $601,479.75 | Calculate → |
| Connecticut | 6.99% | $69,900.00 | 39.7% ($396,920.25) | $603,079.75 | Calculate → |
| South Carolina | 6.30% | $63,000.00 | 39.0% ($390,020.25) | $609,979.75 | Calculate → |
| Rhode Island | 5.99% | $59,900.00 | 38.7% ($386,920.25) | $613,079.75 | Calculate → |
| Montana | 5.90% | $59,000.00 | 38.6% ($386,020.25) | $613,979.75 | Calculate → |
| New Mexico | 5.90% | $59,000.00 | 38.6% ($386,020.25) | $613,979.75 | Calculate → |
| Nebraska | 5.84% | $58,400.00 | 38.5% ($385,420.25) | $614,579.75 | Calculate → |
| Maryland | 5.75% | $57,500.00 | 38.5% ($384,520.25) | $615,479.75 | Calculate → |
| Virginia | 5.72% (2%–5.75% progressive) | $57,242.50 | 38.4% ($384,262.75) | $615,737.25 | Calculate → |
| Idaho | 5.70% | $56,950.00 | 38.4% ($383,970.25) | $616,029.75 | Calculate → |
| Kansas | 5.58% | $55,800.00 | 38.3% ($382,820.25) | $617,179.75 | Calculate → |
| Georgia | 5.39% | $53,900.00 | 38.1% ($380,920.25) | $619,079.75 | Calculate → |
| West Virginia | 5.12% | $51,200.00 | 37.8% ($378,220.25) | $621,779.75 | Calculate → |
| Alabama | 5.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
| Massachusetts | 5.00% (+ 4% over $1,083,150) | $50,000.00 | 37.7% ($377,020.25) | $622,979.75 | Calculate → |
| New Jersey | 8.00% (over $500,000) | $80,000.00 | 40.7% ($407,020.25) | $592,979.75 | Calculate → |
| Illinois | 4.95% | $49,500.00 | 37.7% ($376,520.25) | $623,479.75 | Calculate → |
| Missouri | 4.80% | $48,000.00 | 37.5% ($375,020.25) | $624,979.75 | Calculate → |
| Oklahoma | 4.75% | $47,500.00 | 37.5% ($374,520.25) | $625,479.75 | Calculate → |
| Mississippi | 4.70% | $47,000.00 | 37.4% ($374,020.25) | $625,979.75 | Calculate → |
| Utah | 4.65% | $46,500.00 | 37.4% ($373,520.25) | $626,479.75 | Calculate → |
| North Carolina | 4.50% | $45,000.00 | 37.2% ($372,020.25) | $627,979.75 | Calculate → |
| Colorado | 4.40% | $44,000.00 | 37.1% ($371,020.25) | $628,979.75 | Calculate → |
| Michigan | 4.25% | $42,500.00 | 37.0% ($369,520.25) | $630,479.75 | Calculate → |
| Kentucky | 4.00% | $40,000.00 | 36.7% ($367,020.25) | $632,979.75 | Calculate → |
| Arkansas | 3.90% | $39,000.00 | 36.6% ($366,020.25) | $633,979.75 | Calculate → |
| Iowa | 3.80% | $38,000.00 | 36.5% ($365,020.25) | $634,979.75 | Calculate → |
| Ohio | 3.50% | $35,000.00 | 36.2% ($362,020.25) | $637,979.75 | Calculate → |
| Pennsylvania | 3.07% | $30,700.00 | 35.8% ($357,720.25) | $642,279.75 | Calculate → |
| Indiana | 3.00% | $30,000.00 | 35.7% ($357,020.25) | $642,979.75 | Calculate → |
| Louisiana | 3.00% | $30,000.00 | 35.7% ($357,020.25) | $642,979.75 | Calculate → |
| Arizona | 2.50% | $25,000.00 | 35.2% ($352,020.25) | $647,979.75 | Calculate → |
| North Dakota | 2.50% | $25,000.00 | 35.2% ($352,020.25) | $647,979.75 | Calculate → |
| AlaskaNo Tax | 0.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
| CaliforniaNo Tax | 0.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
| DelawareNo Tax | 0.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
| FloridaNo Tax | 0.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
| NevadaNo Tax | 0.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
| New HampshireNo Tax | 0.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
| South DakotaNo Tax | 0.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
| TennesseeNo Tax | 0.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
| TexasNo Tax | 0.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
| WashingtonNo Tax | 0.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
| WyomingNo Tax | 0.00% | $0.00 | 32.7% ($327,020.25) | $672,979.75 | Calculate → |
Note: Additional local taxes may apply in some states. Examples include: Maryland: ~3.05% average county tax;Yonkers, NY: 1.82575% local tax;NYC: 3.876% local tax (already included above). Check your local jurisdiction for complete tax liability.
Our calculator is based on authoritative sources and official government publications to ensure accuracy and reliability.
Accuracy Commitment: We regularly verify our tax rates against official government publications. All rates are current as of January 2025 and reflect the most recent legislative changes. For the most up-to-date information, we recommend consulting the official sources linked above or consulting with a qualified tax professional for your specific situation.
Our enhanced calculator with Simple/Advanced modes simplifies tax estimation for both lump sum and annuity payments in four easy steps:
Choose your state of residence to calculate applicable federal and state taxes, including local jurisdictions and states with no lottery tax.
Select Simple mode for quick liability estimates or Advanced mode for precise progressive bracket calculations with filing status options.
Select lump sum for immediate payment or annuity for graduated payments over 30 years. Each option has different tax implications.
Input your total winnings and click 'Calculate Your Lottery Taxes'to see both immediate withholding and final after-tax amounts.
Our enhanced calculator handles complex tax scenarios that basic calculators miss, providing professional-grade accuracy for sophisticated tax situations.
Automatically calculates the 30% flat federal tax rate for non-resident aliens, plus applicable state taxes where required.
Example: $100k win = $30k federal + state taxes (no progressive brackets)
Handles complex scenarios where you win in one state but live in another, calculating both source state taxes and home state obligations.
Example: NY resident wins in PA - shows both PA source tax and NY home state liability
Includes city and county taxes for jurisdictions like NYC (3.88%), Yonkers (1.83%), and Maryland counties (up to 3.2%).
Total Rate: NYC residents pay 14.78% combined (10.9% state + 3.88% city)
24% withholding kicks in at $5,000. Shows liability estimates even for smaller wins.
Each state has different withholding thresholds from $600 (MA) to $10,001+ (NJ).
Provides liability estimates for wins under thresholds where no withholding occurs.
Many lottery winners are surprised by tax bills for wins under withholding thresholds. Our enhanced calculator helps you plan by showing estimated liabilities even when no taxes are initially withheld, preventing costly surprises at tax time.
Professional strategies to minimize your tax burden and maximize your after-tax winnings.
Several states allow anonymous claims to protect your privacy and security.
Engage a CPA and tax attorney before claiming to plan optimal strategies.
Establishing residency in a zero-tax state before claiming could save millions.
Strategic charitable giving can significantly reduce your taxable income.
Consider trusts and other structures to manage ongoing tax liability.
Understand how different states tax investment income from your winnings.
Learn from common mistakes to avoid losing thousands (or millions) in unnecessary taxes.
Many winners claim immediately without consulting tax professionals, missing opportunities for residency planning or optimal payout selection.
Solution: Consult with tax professionals BEFORE claiming your prize.
Not considering residency changes before claiming can cost millions. Moving from NYC (14.78%) to FL (0%) saves up to $14.78M on $100M.
Solution: Research state tax rates and consider strategic relocation.
Choosing lump sum vs annuity without analysis can cost hundreds of thousands depending on your situation and investment ability.
Solution: Model both options with professional guidance.
Many assume the 24% withholding is their total tax. Large jackpots push you into the 37% bracket, plus state taxes.
Solution: Calculate total tax liability, not just withholding.
Winners often face penalties for not making quarterly estimated tax payments on the difference between withholding and actual liability.
Solution: Set aside funds for quarterly payments immediately.
Proper tax planning can save lottery winners 20-40% of their potential tax burden through legal strategies and optimization.
Investment: Professional advice pays for itself many times over.
Join Lottery Valley Plus to access advanced AI predictions, unlimited history, and expert analysis to maximize your lottery strategy.
Get answers to the most common questions about lottery taxes in 2025, optimized for voice search.
This calculator provides estimates based on current tax rates and standard scenarios. Your actual tax liability may vary based on your total income, deductions, credits, and other individual circumstances not accounted for in this calculation.
We strongly recommend consulting with qualified tax professionals before making any decisions based on these calculations. This includes:
While we strive for accuracy, tax rates and laws change frequently. This calculator reflects rates as of January 2025. Always verify current rates with official sources or tax professionals, especially for large lottery winnings.
This calculator is for informational purposes only. It does not constitute legal, tax, or financial advice. Lottery Valley and its representatives are not responsible for any decisions made based on these calculations.
For corrections, questions, or professional referrals, please contact us at hello@lotteryvalley.com