Lottery taxes by state
Federal tax applies to every lottery prize in the US. State tax is the part that varies. Some states take nothing, others take a large share. Here is a plain overview and a calculator you can set to your own state's rate.
Cash option
$47,000,000
before tax
Take-home, lump sum
$29,639,920
after about 36.9% tax
Total tax, lump sum
$17,360,080
Federal $17,360,080 + state $0
Lump sum breakdown
Your top federal rate on this win: 37%. The lottery withholds only 24%, so a large jackpot usually means a large bill on top.
Annuity: 30 payments over 29 years
First payment
$1,505,144
rises 5% a year
Total take-home
$63,897,592
from $100,000,000 gross
Worth today at 4%
$33,331,724
annuity take-home in today's money
On these numbers the annuity is worth more in today's money ($33,331,724 versus $29,639,920). Change the discount rate and see how it flips.
See every annuity payment
| Year | Gross | Federal tax | State tax | Take-home |
|---|---|---|---|---|
| 1 | $1,505,144 | $526,983 | $0 | $978,160 |
| 2 | $1,580,401 | $554,829 | $0 | $1,025,572 |
| 3 | $1,659,421 | $584,066 | $0 | $1,075,355 |
| 4 | $1,742,392 | $614,765 | $0 | $1,127,627 |
| 5 | $1,829,511 | $646,999 | $0 | $1,182,512 |
| 6 | $1,920,987 | $680,845 | $0 | $1,240,142 |
| 7 | $2,017,036 | $716,384 | $0 | $1,300,653 |
| 8 | $2,117,888 | $753,699 | $0 | $1,364,189 |
| 9 | $2,223,782 | $792,880 | $0 | $1,430,903 |
| 10 | $2,334,972 | $834,020 | $0 | $1,500,952 |
| 11 | $2,451,720 | $877,217 | $0 | $1,574,503 |
| 12 | $2,574,306 | $922,574 | $0 | $1,651,733 |
| 13 | $2,703,021 | $970,198 | $0 | $1,732,823 |
| 14 | $2,838,173 | $1,020,204 | $0 | $1,817,968 |
| 15 | $2,980,081 | $1,072,710 | $0 | $1,907,371 |
| 16 | $3,129,085 | $1,127,842 | $0 | $2,001,243 |
| 17 | $3,285,540 | $1,185,730 | $0 | $2,099,810 |
| 18 | $3,449,816 | $1,246,512 | $0 | $2,203,304 |
| 19 | $3,622,307 | $1,310,334 | $0 | $2,311,973 |
| 20 | $3,803,423 | $1,377,347 | $0 | $2,426,076 |
| 21 | $3,993,594 | $1,447,710 | $0 | $2,545,884 |
| 22 | $4,193,274 | $1,521,591 | $0 | $2,671,682 |
| 23 | $4,402,937 | $1,599,167 | $0 | $2,803,770 |
| 24 | $4,623,084 | $1,680,621 | $0 | $2,942,463 |
| 25 | $4,854,238 | $1,766,148 | $0 | $3,088,090 |
| 26 | $5,096,950 | $1,855,952 | $0 | $3,240,998 |
| 27 | $5,351,798 | $1,950,245 | $0 | $3,401,552 |
| 28 | $5,619,388 | $2,049,254 | $0 | $3,570,134 |
| 29 | $5,900,357 | $2,153,212 | $0 | $3,747,145 |
| 30 | $6,195,375 | $2,262,369 | $0 | $3,933,006 |
An estimate for educational use, using 2026 US federal brackets and the standard deduction, with the win taxed as ordinary income on top of the income you enter. It ignores deductions, credits, the alternative minimum tax, local taxes you do not enter and trusts. Pools, gifts and estate tax change the picture. Talk to a tax professional before you claim a large prize.
States that do not tax lottery winnings
| State | State tax on lottery winnings |
|---|---|
| Alaska | None |
| California | None on California Lottery prizes |
| Florida | None |
| Nevada | None |
| New Hampshire | None |
| South Dakota | None |
| Tennessee | None |
| Texas | None |
| Washington | None |
| Wyoming | None |
Every other state with an income tax taxes lottery winnings in some way. Rates change, so look up your state's revenue department for the current number and enter it in the calculator.
Federal tax applies everywhere
The federal government withholds 24% from lottery prizes over $5,000 and taxes the full amount as ordinary income. The top federal rate is 37%. This is the same in every state, so the main difference between states is the state share on top.
Why where you live matters
- The state where you bought the ticket may tax the prize even if you live somewhere else.
- Some states and cities add their own income tax on winnings.
- Some states allow winners to stay anonymous and some do not, which affects privacy.
- Claim deadlines differ by state and game.
What the calculator does
- 1Takes the advertised jackpot and applies the cash option percentage to get the lump sum.
- 2Adds the lump sum to the other income you enter and applies the 2026 federal brackets and standard deduction.
- 3Subtracts the 24% already withheld to show how much more you will owe.
- 4Applies your state rate to the winnings.
- 5For the annuity, spreads the jackpot over 30 payments that each grow by 5%, taxes every year separately and discounts the result to today's money.
This is an estimate. It leaves out deductions, credits, the alternative minimum tax and local taxes. Always confirm with a tax professional before claiming a large prize.
Lump sum or annuity: how to think about it
- The lump sum is a fixed amount now, usually about half the advertised jackpot, and is taxed in one year at the top brackets.
- The annuity pays the full advertised amount over 29 years, rises 5% a year and is taxed year by year, often at lower rates in the early years.
- The right answer depends on how much you can earn on invested money, your discipline, your health and family, and your tax situation.
- Winners who take the annuity cannot spend it all at once, which protects some people from themselves. Winners who take the lump sum can invest it, but also lose it.
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Frequently asked questions
Which states have no lottery tax?
Alaska, California, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax lottery winnings at the state level.
Does the state where I bought the ticket matter?
Yes. The state that runs the lottery may tax or withhold on the prize, and your home state may tax it as well. Ask a tax professional about credits for tax paid to another state.
Is lottery income taxed at a flat rate?
Federal tax is progressive, so the top part of a large win is taxed at 37%. States vary: some flat, some progressive.
Where do I find my state rate?
On your state revenue department's website. Enter it in the state rate box.