Massachusetts State Lottery
Massachusetts Lottery Tax Calculator
Massachusetts taxes a lottery prize at 5%, plus a 4% surtax on 2026 income above $1,107,750 — yet the Lottery withholds only 5%, starting at $600.
Verified · tax year 2026
Massachusetts prize — results
Take-home
58.7% kept of $2,000,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $2,000,000 |
|---|---|
| Federal income tax | −$690,000 |
| Tax to Massachusetts | $0 |
| Massachusetts tax | −$135,690 |
| Local income tax | $0 |
| You keep | $1,174,310 |
| Federal withholding (24%) | −$480,000 |
|---|---|
| State withholding | −$100,000 |
| Check you receive | $1,420,000 |
| Still owed when you file | $245,690 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
The millionaire surtax and a big prize
Massachusetts’ 4% surtax, indexed each year, applies to 2026 income above $1,107,750. A $2,000,000 prize to a single filer with no other income produces $135,690 of Massachusetts tax — 5% on everything and 9% on the part above the threshold. Chapter 62B § 2 requires the Lottery to withhold 5% ($100,000 here), so close to $35,690 of state tax is still due.
Why Massachusetts annuities look better than elsewhere
The surtax threshold applies per year. A $50 million Mega Millions jackpot taken as cash puts all $23 million in one year, mostly above the threshold; the annuity’s first payment is only about $752,572, which stays below it. Across 30 years this calculator puts the after-tax annuity at $29,762,268 against $12,514,310 for the lump sum — before considering what the cash could earn.
Massachusetts also withholds on lottery prizes of $600 or more, even where federal rules would not.
Massachusetts at a glance
| State income tax on winnings | Up to 9% |
|---|---|
| Rate table used | 2026 |
| Lottery | Massachusetts State Lottery |
| State withholding at claim | 5% at $600+ |
What Massachusetts winners should know
- The 4% surtax applies to 2026 income above $1,107,750, so most of a big Massachusetts jackpot is taxed at 9% — but the Lottery withholds only 5%.
- Massachusetts withholds on lottery prizes from $600, even where federal rules would not require withholding.
- Taking the annuity can keep more of each year’s payment under the surtax threshold, which a lump sum cannot do.
Massachusetts sources
- Massachusetts Tax Rates — Massachusetts Department of Revenue †
- M.G.L. c. 62B § 2 — Massachusetts Legislature
- Withholding Tax Guide — Massachusetts Department of Revenue †
Agency: Massachusetts Department of Revenue. † read through a browser session (why). How the math works.
Neighboring states
Connecticut · New Hampshire · New York · Rhode Island · Vermont