Louisiana Lottery
Louisiana Lottery Tax Calculator
Louisiana moved to a single 3% income tax in 2025, and the Louisiana Lottery withholds that 3% from prizes of $5,000 or more — starting a dollar below the federal withholding line.
Verified · tax year 2026
Louisiana prize — results
Take-home
97% kept of $5,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $5,000 |
|---|---|
| Federal income tax | $0 |
| Tax to Louisiana | $0 |
| Louisiana tax | −$150 |
| Local income tax | $0 |
| You keep | $4,850 |
| Federal withholding (24%) | $0 |
|---|---|
| State withholding | −$150 |
| Check you receive | $4,850 |
| Still owed when you file | $0 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
The $5,000 edge case
Louisiana Lottery claim rules say the state withholds 3% from prizes of $5,000 or more, while the federal 24% applies only to prizes over $5,000. A prize of exactly $5,000 therefore pays $4,850: $150 for Louisiana and nothing for the IRS at the window, though roughly $0 of federal tax is owed later by a filer with no other income.
From three brackets to one rate
Through 2024 Louisiana taxed income at 1.85%, 3.5% and 4.25%. For tax years 2025 and after the Department of Revenue lists 3% at every income level for every filing status, so withholding and final tax line up on a big prize. Groups that win a jackpot are asked to form a legal entity with its own tax ID before claiming, so each member gets a separate W-2G showing his or her share.
Louisiana at a glance
| State income tax on winnings | Up to 3% |
|---|---|
| Rate table used | 2025 and after |
| Lottery | Louisiana Lottery |
| State withholding at claim | 3% at $5,000+ |
What Louisiana winners should know
- Louisiana replaced its 1.85%–4.25% brackets with one 3% rate starting in 2025.
- The Louisiana Lottery starts state withholding at exactly $5,000, one dollar below the federal trigger.
- Groups claiming a jackpot are asked to form a legal entity with its own tax ID so each member gets a separate W-2G.
Louisiana sources
- Individual Income Tax — Louisiana Department of Revenue
- Claiming a Prize — Louisiana Lottery †
Agency: Louisiana Department of Revenue. † read through a browser session (why). How the math works.
Neighboring states
Arkansas · Mississippi · Texas