Pennsylvania Lottery
Pennsylvania Lottery Tax Calculator
Pennsylvania Lottery prizes were tax-free in Pennsylvania until 2016; since Act 84 they are taxed at the flat 3.07% rate, which the Lottery withholds whenever federal tax is withheld.
Verified · tax year 2026
Pennsylvania prize — results
Take-home
64.9% kept of $1,000,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $1,000,000 |
|---|---|
| Federal income tax | −$320,000 |
| Tax to Pennsylvania | $0 |
| Pennsylvania tax | −$30,700 |
| Local income tax | $0 |
| You keep | $649,300 |
| Federal withholding (24%) | −$240,000 |
|---|---|
| State withholding | −$30,700 |
| Check you receive | $729,300 |
| Still owed when you file | $80,000 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
Act 84 ended the exemption
From July 21, 1983 through December 31, 2015, Pennsylvania excluded all Pennsylvania Lottery prizes from its gambling-and-lottery class of income. Act 84 of 2016 brought cash prizes paid on or after January 1, 2016 into that class, and required withholding on payments made after July 12, 2016. A $1,000,000 prize now carries $30,700 of Pennsylvania tax at 3.07%, withheld in full at claim ($30,700).
A separate class of income
Pennsylvania sorts income into classes, and gambling and lottery winnings are their own class under 72 PA C.S. §7303(a)(7). Losses in that class offset only gains in that class, never wages. Residents are taxed on winnings from every source except noncash Pennsylvania Lottery prizes; nonresidents are taxed on winnings from wagers placed in Pennsylvania. The 3.07% rate has applied since 2004.
Pennsylvania at a glance
| State income tax on winnings | Up to 3.07% |
|---|---|
| Rate table used | 2004–present |
| Lottery | Pennsylvania Lottery |
| State withholding at claim | 3.07% over $5,000 |
What Pennsylvania winners should know
- Pennsylvania Lottery cash prizes were tax-free in Pennsylvania from 1983 through 2015; Act 84 of 2016 made prizes paid on or after January 1, 2016 taxable.
- Noncash Pennsylvania Lottery prizes remain outside the gambling-and-lottery income class.
- Pennsylvania treats gambling and lottery winnings as their own class of income, so losses in that class cannot offset wages or other classes.
Pennsylvania sources
- Personal Income Tax Rates — Pennsylvania Department of Revenue †
- PA Personal Income Tax Guide — Gambling and Lottery Winnings — Pennsylvania Department of Revenue †
Agency: Pennsylvania Department of Revenue. † read through a browser session (why). How the math works.
Neighboring states
Delaware · Maryland · New Jersey · New York · Ohio · West Virginia