Hawaii · no state lottery
Hawaii Lottery Tax Calculator
Hawaii has neither a lottery nor casinos, but it taxes residents’ winnings from mainland lotteries and Las Vegas at rates that reach 11% — one of the highest top rates in the country.
Verified · tax year 2026
Hawaii prize — results
Take-home
58% kept of $1,000,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $1,000,000 |
|---|---|
| Federal income tax | −$320,000 |
| Tax to California | $0 |
| Hawaii tax | −$100,216 |
| Local income tax | $0 |
| You keep | $579,784 |
| Federal withholding (24%) | −$240,000 |
|---|---|
| State withholding | $0 |
| Check you receive | $760,000 |
| Still owed when you file | $180,216 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
The mainland ticket problem
A Hawaii resident who buys Powerball in California during a trip gets one break: California does not tax California Lottery prizes, even for nonresidents. Hawaii still does. A $1,000,000 prize on a California ticket, single filer with no other income, costs $320,000 in federal tax and $100,216 under Hawaii’s brackets, leaving $579,784. California withholds nothing for Hawaii, so the full Hawaii tax is due with the return.
Win the same amount on a ticket from a state that does tax nonresidents, and Hawaii’s credit for taxes paid to that state keeps you from paying twice on the overlap.
Brackets that are still widening
Act 46 of 2024 rewrote HRS § 235-51 in stages. For 2025 and 2026 a single filer reaches 11% above $325,000 of taxable income ($650,000 joint). From 2027 those thresholds rise to $400,000 and $800,000, and they widen again after 2028. A large prize taken as an annuity therefore has later payments taxed under wider brackets than a 2026 lump sum.
Hawaii at a glance
| State income tax on winnings | Up to 11% |
|---|---|
| Rate table used | 2026 (HRS § 235-51, schedule for years after 2024) |
| Lottery | None — tickets are bought in other states |
| State withholding at claim | No state lottery |
| Scheduled change | For tax years after 2026 HRS § 235-51 widens every bracket again (the 11% rate starts at $400,000 single, $800,000 joint); a further widening follows for years after 2028. |
What Hawaii winners should know
- Hawaii has no lottery and no legal casino, so Hawaii residents typically win with tickets bought on trips to the mainland — and Hawaii taxes those prizes at up to 11%.
- Hawaii’s 11% top rate starts at $325,000 for single filers in 2026, so most of a seven-figure prize is taxed at 11%.
Hawaii sources
- HRS § 235-51 — Tax imposed on individuals; rates — Hawaii State Legislature †
- Mega Millions — Where to Play — Mega Millions consortium
Agency: Hawaii Department of Taxation. † read through a browser session (why). How the math works.