New York Lottery
New York Lottery Tax Calculator
New York taxes a large lottery prize at up to 10.9% — flat on every dollar once income passes $25 million — and New York City residents add as much as 3.876% on top.
Verified · tax year 2026
New York prize — results
Take-home
57.3% kept of $1,000,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $1,000,000 |
|---|---|
| Federal income tax | −$320,000 |
| Tax to New York | $0 |
| New York tax | −$68,500 |
| Local income tax | −$38,635 |
| You keep | $572,865 |
| Federal withholding (24%) | −$240,000 |
|---|---|
| State withholding | not published |
| Check you receive | $760,000 |
| Still owed when you file | $187,135 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
A New York City winner, line by line
Take a $1,000,000 prize claimed by a single New York City resident with no other income. Federal tax is $320,000. New York State tax is $68,500 — not the bracket-table figure, because the state’s recapture worksheets phase out the benefit of the lower brackets once New York AGI passes $107,650. City tax adds $38,635. What remains is $572,865, or 57.3% of the prize.
How the recapture works
The 2026 estimated-tax instructions (IT-2105-I) contain the worksheets. Each worksheet adds a “recapture base” and a share of an “incremental benefit” that phases in over $50,000 of AGI above a bracket’s start. Once fully phased in, a filer pays the rate of his top bracket on all taxable income: 6.85% for single filers between $215,400 and $1,077,550, 9.65% up to $5 million, 10.3% up to $25 million. Above $25 million of New York AGI the instructions simply multiply taxable income by 10.9%.
Yonkers residents pay a surcharge equal to 16.75% of their New York State tax; the calculator includes it when you choose Yonkers.
What the Lottery withholds
New York’s employer guide (NYS-50) requires state withholding on New York State Lottery prizes paid to individuals when the proceeds exceed $5,000, but the pages we could verify do not print the percentage. Rather than guess, the calculator leaves state withholding blank for New York and shows the full state tax as due at filing; your claim paperwork will show the actual amount held back.
New York at a glance
| State income tax on winnings | Up to 10.9% |
|---|---|
| Rate table used | 2026 |
| Lottery | New York Lottery |
| State withholding at claim | Rate not published |
| Local tax | New York City or Yonkers resident |
What New York winners should know
- Once New York AGI tops $25 million, all New York taxable income is taxed at a flat 10.9% — the lower brackets disappear entirely.
- Between $107,650 and $25 million of AGI, New York’s recapture worksheets phase out the benefit of the lower brackets over each $50,000 band, so the effective state rate on a prize climbs toward its top bracket rate.
- New York City residents add 3.078%–3.876% city tax; Yonkers residents add a surcharge equal to 16.75% of their state tax.
New York sources
- IT-2105-I (2026) Instructions for Estimated Income Tax — NYS Department of Taxation and Finance
- NYS-50 Employer’s Guide — Withholding from certain gambling winnings — NYS Department of Taxation and Finance
- NYS-50-T-Y (1/26) Yonkers Withholding Tax Tables and Methods — NYS Department of Taxation and Finance
Agency: NYS Department of Taxation and Finance. † read through a browser session (why). How the math works.
Neighboring states
Connecticut · Massachusetts · New Jersey · Pennsylvania · Vermont