2026 tax year · all 50 states + DC
Lottery Tax Calculator
The lottery withholds 24% for the IRS, but a jackpot is taxed at up to 37% federally plus 0% to 10.9% by your state. Enter your prize and state to see what you actually keep — lump sum or annuity.
Jackpot — results
Lump sum · take-home
52.4% kept of $45,000,000
Annuity · 30 payments
Year 1 $847,556 → year 30 $3,298,202
| Cash received | $45,000,000 |
|---|---|
| Federal income tax | −$16,617,180 |
| Tax to New Jersey | $0 |
| New Jersey tax | −$4,809,201 |
| Local income tax | $0 |
| You keep | $23,573,619 |
| Federal withholding (24%) | −$10,800,000 |
|---|---|
| State withholding | −$3,600,000 |
| Check you receive | $30,600,000 |
| Still owed when you file | $7,026,382 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
Lottery taxes in your state
Each state page uses that state’s own rate table, its lottery’s withholding rule and its quirks — New Jersey’s $10,000 exemption, New York’s $25 million flat rate, Maryland’s county tax, California’s exemption for its own lottery. The figure beside each name is the highest state rate a single filer can reach in 2026.
- Alabama5%
- Alaskano tax
- Arizona2.5%
- Arkansas3.7%
- Californiaexempt*
- Colorado4.4%
- Connecticut6.99%
- Delaware6.6%
- District of Columbia10.75%
- Floridano tax
- Georgia4.99%
- Hawaii11%
- Idaho5.3%
- Illinois4.95%
- Indiana2.95%
- Iowa3.8%
- Kansas5.58%
- Kentucky3.5%
- Louisiana3%
- Maine9.15%
- Maryland6.5%
- Massachusetts9%
- Michigan4.25%
- Minnesota9.85%
- Mississippi4%
- Missouri4.7%
- Montana5.65%
- Nebraska≤4.55%
- Nevadano tax
- New Hampshireno tax
- New Jersey10.75%
- New Mexico5.9%
- New York10.9%
- North Carolina3.99%
- North Dakota≤2.5%
- Ohio2.75%
- Oklahoma4.5%
- Oregon9.9%
- Pennsylvania3.07%
- Rhode Island≤5.99%
- South Carolina6%
- South Dakotano tax
- Tennesseeno tax
- Texasno tax
- Utah4.45%
- Vermont≤8.75%
- Virginia5.75%
- Washingtonno tax
- West Virginia4.58%
- Wisconsin7.65%
- Wyomingno tax
* California does not tax California Lottery prizes; other winnings are taxed at up to 13.3%. ≤ marks states where only the top rate is verified for 2026.
Quick answers
How much tax do you pay on a $1 million lottery prize?
In a state with no income tax, a single winner with no other income owes about $320,000 in federal tax and keeps $680,000. The lottery withholds only 24% ($240,000) at the window, so roughly $80,000 is still due at filing. State tax comes on top in most states.
Lump sum or annuity?
For a $100 million Powerball jackpot with a $45 million cash value, a Texan keeps $28,400,000 from the cash or $64,499,993 over 30 growing payments. The annuity pays more in total but over 29 years; the cash can be invested now. Our lump sum vs annuity guide works through the break-even.
Which states don’t tax lottery winnings?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming have no tax on individual income, and California exempts prizes from its own lottery. Every other state and DC taxes lottery winnings as ordinary income — though New Jersey exempts its own lottery prizes of $10,000 or less.
Do I pay tax where I bought the ticket or where I live?
Often both: the selling state may withhold and tax the prize as income earned there, and your home state taxes all your income but usually credits the other state’s tax. The out-of-state winner guide explains the credit and which states don’t tax nonresidents.
When does a W-2G arrive, and when is tax withheld?
For 2026 the IRS reporting threshold for lottery and most gambling winnings is $2,000 (it was $600, or $1,200 for slots, before). Federal 24% withholding starts when winnings minus the wager exceed $5,000. Casino and sports-betting rules, including the new 90% limit on deducting losses, are on the gambling winnings calculator.