CryptoDrawz

New York lottery tax calculator

New York taxes lottery winnings at the state level on top of federal tax, and New York City and Yonkers residents pay extra. The calculator starts with New York's 8.82% withholding rate and lets you add local tax.

Cash option

$47,000,000

before tax

Take-home, lump sum

$25,494,520

after about 45.8% tax

Total tax, lump sum

$21,505,480

Federal $17,360,080 + state $4,145,400

Lump sum breakdown

Advertised jackpot$100,000,000
Cash option$47,000,000
Federal tax withheld up front (24%)-$11,280,000
Federal tax you actually owe (estimate)-$17,360,080
More federal tax due when you file$6,080,080
State and local tax-$4,145,400
Take-home$25,494,520

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

$55,077,592

from $100,000,000 gross

Worth today at 4%

$28,740,612

annuity take-home in today's money

On these numbers the annuity is worth more in today's money ($28,740,612 versus $25,494,520). Change the discount rate and see how it flips.

See every annuity payment
YearGrossFederal taxState taxTake-home
1$1,505,144$526,983$132,754$845,407
2$1,580,401$554,829$139,391$886,181
3$1,659,421$584,066$146,361$928,994
4$1,742,392$614,765$153,679$973,948
5$1,829,511$646,999$161,363$1,021,149
6$1,920,987$680,845$169,431$1,070,710
7$2,017,036$716,384$177,903$1,122,750
8$2,117,888$753,699$186,798$1,177,392
9$2,223,782$792,880$196,138$1,234,765
10$2,334,972$834,020$205,944$1,295,007
11$2,451,720$877,217$216,242$1,358,262
12$2,574,306$922,574$227,054$1,424,679
13$2,703,021$970,198$238,406$1,494,417
14$2,838,173$1,020,204$250,327$1,567,642
15$2,980,081$1,072,710$262,843$1,644,528
16$3,129,085$1,127,842$275,985$1,725,258
17$3,285,540$1,185,730$289,785$1,810,025
18$3,449,816$1,246,512$304,274$1,899,030
19$3,622,307$1,310,334$319,488$1,992,486
20$3,803,423$1,377,347$335,462$2,090,614
21$3,993,594$1,447,710$352,235$2,193,649
22$4,193,274$1,521,591$369,847$2,301,835
23$4,402,937$1,599,167$388,339$2,415,431
24$4,623,084$1,680,621$407,756$2,534,707
25$4,854,238$1,766,148$428,144$2,659,946
26$5,096,950$1,855,952$449,551$2,791,447
27$5,351,798$1,950,245$472,029$2,929,524
28$5,619,388$2,049,254$495,630$3,074,504
29$5,900,357$2,153,212$520,411$3,226,733
30$6,195,375$2,262,369$546,432$3,386,574

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.

Lottery winnings in New York

New York State withholds 8.82% from large lottery prizes, and your final state tax is calculated on your return at New York's income tax rates, which rise with income. Residents of New York City and Yonkers also pay local income tax on winnings, which adds a few percent.

The default rate in the calculator is the 8.82% withholding rate, as an approximation. If you live in New York City, add about 3.9% to the rate. Your actual bill depends on your total income and deductions, so treat the result as an estimate.

What the calculator does

  1. 1Takes the advertised jackpot and applies the cash option percentage to get the lump sum.
  2. 2Adds the lump sum to the other income you enter and applies the 2026 federal brackets and standard deduction.
  3. 3Subtracts the 24% already withheld to show how much more you will owe.
  4. 4Applies your state rate to the winnings.
  5. 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

Does New York tax lottery winnings?

Yes. New York State taxes lottery winnings as income, and New York City and Yonkers add local tax for residents.

How much does New York withhold from lottery prizes?

The state withholds 8.82% on large prizes. The final tax depends on your whole return.

Does New York City tax lottery winnings?

Yes, New York City residents pay city income tax on winnings. Add the city rate to the state rate in the calculator.

Does the federal tax change in New York?

No. Federal rules are the same everywhere: 24% withholding, and up to 37% on the top slice of a big win.

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