California Lottery
California Lottery Tax Calculator
California does not tax a California Lottery prize at all — not the jackpot, not a scratcher — so a Californian who wins a Powerball or Mega Millions prize here owes federal tax only.
Verified · tax year 2026
California prize — results
Lump sum · take-home
63.1% kept of $45,000,000
Annuity · 30 payments
Year 1 $998,240 → year 30 $3,953,086
| Cash received | $45,000,000 |
|---|---|
| Federal income tax | −$16,600,000 |
| Tax to California | $0 |
| California tax | $0 |
| Local income tax | $0 |
| You keep | $28,400,000 |
| Federal withholding (24%) | −$10,800,000 |
|---|---|
| State withholding | $0 |
| Check you receive | $34,200,000 |
| Still owed when you file | $5,800,000 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
The exemption, in the Lottery Act itself
Government Code § 8880.68, part of the 1984 initiative that created the California Lottery, bars any state or local tax on a prize the Lottery awards. The Lottery therefore withholds nothing for California. Take a $100 million Powerball jackpot with a $45 million cash value: a single winner with no other income keeps $28,400,000 of the cash after $16,600,000 in federal tax, or $64,499,993 spread over 30 payments.
Where California tax does apply
The exemption follows the ticket, not the winner. A Californian who wins on a ticket bought in Arizona or Oregon, at a casino, in a card room or at the track reports those winnings at regular California rates — 1% to 12.3%, plus the 1% Behavioral Health Services Tax on taxable income above $1,000,000. A $1,000,000 prize on an Arizona ticket, for instance, costs a single Californian about $103,837 in combined Arizona and California tax, versus nothing on a California ticket.
California’s 2026 inflation-adjusted brackets have not been published yet, so casino and out-of-state figures here use the 2025 schedules and are flagged as such.
Smaller prizes are pari-mutuel
Outside the jackpot, California pays Powerball and Mega Millions prizes pari-mutuel: the pool is shared among winners, so a California Match 5 can be worth more or less than the fixed $1 million printed on other states’ charts. Enter the amount on your claim slip in “Single prize” mode.
California at a glance
| State income tax on winnings | None on California Lottery prizes; 1%–12.3% (+1% over $1M) on other winnings |
|---|---|
| Rate table used | 2025 schedules (2026 indexed schedules not yet published) |
| Lottery | California Lottery |
| State withholding at claim | None |
What California winners should know
- Government Code § 8880.68 bars state and local tax on any prize awarded by the California Lottery, so a California Powerball or Mega Millions win owes federal tax only.
- The exemption covers California Lottery prizes only: a Californian’s winnings from another state’s lottery, a casino or a card room are taxed at the regular rates, plus 1% on taxable income above $1,000,000.
- California pays lower-tier Powerball prizes pari-mutuel, so a California Match-5 can differ from the fixed amount printed on other states’ prize charts.
California sources
- 2025 California Tax Rate Schedules — Franchise Tax Board
- 2025 California Resident Income Tax Return Form 540 booklet, line 62 — Franchise Tax Board
- Government Code § 8880.68 — California Legislative Information
- Powerball prize chart — Multi-State Lottery Association (powerball.com)
Agency: Franchise Tax Board. † read through a browser session (why). How the math works.