Tennessee Lottery
Tennessee Lottery Tax Calculator
Tennessee ended its last income tax — the Hall tax on interest and dividends — for tax periods starting in 2021, so prizes won by Tennesseans are taxed only federally.
Verified · tax year 2026
Tennessee prize — results
Lump sum · take-home
63.1% kept of $90,000,000
Annuity · 30 payments
Year 1 $1,946,481 → year 30 $7,856,172
| Cash received | $90,000,000 |
|---|---|
| Federal income tax | −$33,250,000 |
| Tax to Tennessee | $0 |
| Tennessee tax | $0 |
| Local income tax | $0 |
| You keep | $56,750,000 |
| Federal withholding (24%) | −$21,600,000 |
|---|---|
| State withholding | $0 |
| Check you receive | $68,400,000 |
| Still owed when you file | $11,650,000 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
Hall tax gone, prizes untouched
Lottery winnings were never within the Hall tax, which reached only interest and dividends before its repeal for tax periods beginning on or after January 1, 2021. A Tennessean with a $200 million Powerball jackpot keeps $56,750,000 of the $90 million cash after the IRS’s $33,250,000, or $127,499,993 across the annuity.
The Kentucky shopper
Tennessee shares a border with eight states, and its retailers sell to all of them without withholding any state tax. That shifts the bill home: a Kentuckian who wins $1,000,000 on a Tennessee ticket owes Kentucky’s 3.5% — $35,000 — when filing. Georgians owe 4.99%, North Carolinians 3.99% and Virginians up to 5.75% in 2026, while Alabamians, who cannot buy tickets at home, owe up to 5%.
Tennessee at a glance
| State income tax on winnings | None |
|---|---|
| Lottery | Tennessee Lottery |
| State withholding at claim | None |
What Tennessee winners should know
- Tennessee’s Hall tax on interest and dividends was repealed for tax periods beginning on or after January 1, 2021, so Tennessee now taxes no personal income — prizes included.
Tennessee sources
- Hall Income Tax — Tennessee Department of Revenue
Agency: Tennessee Department of Revenue. † read through a browser session (why). How the math works.
Neighboring states
Alabama · Arkansas · Georgia · Kentucky · Mississippi · Missouri · North Carolina · Virginia