Alaska · no state lottery
Alaska Lottery Tax Calculator
An Alaskan who wins owes only federal tax on the prize: Alaska’s income tax law does not apply to individuals, and the state has no lottery of its own.
Verified · tax year 2026
Alaska prize — results
Lump sum · take-home
63% kept of $115,000,000
Annuity · 30 payments
Year 1 $2,420,601 → year 30 $9,807,715
| Cash received | $115,000,000 |
|---|---|
| Federal income tax | −$42,500,000 |
| Tax to Washington | $0 |
| Alaska tax | $0 |
| Local income tax | $0 |
| You keep | $72,500,000 |
| Federal withholding (24%) | −$27,600,000 |
|---|---|
| State withholding | $0 |
| Check you receive | $87,400,000 |
| Still owed when you file | $14,900,000 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
The only tax is the federal one — if you choose where to play
Alaska Statutes § 43.20.012 says the state income tax chapter does not reach individuals, so nothing about a prize ever lands on an Alaska return. The catch is the ticket: with no Alaska lottery, an Alaskan plays while traveling, and the state that sold the ticket may treat the prize as income earned there.
Washington is the natural choice for many Alaskans flying south, and Washington has no income tax for 2026. A $250 million Mega Millions jackpot taken as a $115 million cash payment on a Washington ticket leaves $72,500,000 after the IRS share of $42,500,000. Taken as the 30-payment annuity instead, the after-tax total is $158,999,993, starting at $2,420,601 in year one.
When an Alaskan wins somewhere that does tax nonresidents
Buy the same ticket in Oregon or Idaho and those states withhold their own tax from a nonresident (Oregon takes 8% on prizes of $1,500 or more; Idaho takes 5.3% above $5,000). Alaska has no income tax to credit that payment against, so the out-of-state tax becomes a permanent cost rather than a timing difference. Pick a different “Ticket bought in” state in the calculator to see the gap.
Alaska at a glance
| State income tax on winnings | None |
|---|---|
| Lottery | None — tickets are bought in other states |
| State withholding at claim | No state lottery |
What Alaska winners should know
- Alaska Statutes § 43.20.012 says the state income tax chapter does not apply to individuals, so an Alaskan who wins owes only federal tax on the prize.
- There is no Alaska lottery; an Alaskan holding a winning ticket from another state is a nonresident there, and that state may tax the prize and withhold at its nonresident rate.
Alaska sources
- Alaska Statutes AS 43.20.012 — Alaska Legislature †
- Mega Millions — Where to Play — Mega Millions consortium
Agency: Alaska Department of Revenue, Tax Division. † read through a browser session (why). How the math works.