Delaware Lottery
Delaware Lottery Tax Calculator
Delaware Lottery prizes are subject to Delaware income tax, but the Lottery withholds only the 24% federal tax — so a Delaware winner’s state bill, up to 6.6%, is still owed after the check clears.
Verified · tax year 2026
Delaware prize — results
Take-home
61.5% kept of $1,000,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $1,000,000 |
|---|---|
| Federal income tax | −$320,000 |
| Tax to Delaware | $0 |
| Delaware tax | −$64,984 |
| Local income tax | $0 |
| You keep | $615,016 |
| Federal withholding (24%) | −$240,000 |
|---|---|
| State withholding | $0 |
| Check you receive | $760,000 |
| Still owed when you file | $144,984 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
No withholding is not the same as no tax
The Delaware Lottery’s own FAQ says every winning Delaware ticket is subject to Delaware income tax, yet the only amount it withholds is the federal 24% on prizes over $5,000. A $1,000,000 winner therefore walks away with a check for $760,000 and two bills to come: about $80,000 more for the IRS and $64,984 for Delaware, for a final take-home of $615,016.
Estimated tax payments in the quarter of the win are the usual way to avoid an underpayment penalty on that Delaware balance.
One table, starting at $2,000
Under 30 Del. C. § 1102 Delaware taxes nothing on the first $2,000 of taxable income, then 2.2%, 3.9%, 4.8%, 5.2% and 5.55%, with 6.6% above $60,000. The same table applies whether you file alone or jointly. For any meaningful prize, nearly all of it is taxed at 6.6%.
Delaware lets every lottery winner remain anonymous, and prizes must be claimed within one year of the drawing (or of the announced end of an instant game).
Delaware at a glance
| State income tax on winnings | Up to 6.6% |
|---|---|
| Rate table used | 2026 (30 Del. C. § 1102(a)(14)) |
| Lottery | Delaware Lottery |
| State withholding at claim | None |
What Delaware winners should know
- The Delaware Lottery withholds no state tax, yet every Delaware Lottery prize is subject to Delaware income tax — a resident’s 6.6% on a big prize is due with the return or through estimated payments.
- Delaware law lets every Delaware Lottery winner remain anonymous.
- Delaware applies one bracket table to every filing status; the 6.6% top rate begins at $60,000.
Delaware sources
- 30 Del. C. § 1102 — Imposition and rate of tax — Delaware Code Online
- FAQs — Delaware Lottery †
Agency: Delaware Division of Revenue. † read through a browser session (why). How the math works.