Enter the official cash value
If you take a one-time payment, enter the actual cash option before tax. The advertised annuity jackpot is not the taxable cash amount you receive.
RUN YOUR 2026 ESTIMATE
How much tax could come out of your lottery winnings?
Enter the amount that will actually be taxable to you in 2026. For a cash jackpot, use the official cash option. For an annuity, use the payment you will receive this year — not the full advertised jackpot.
Your tax inputs
Cash option or one annual annuity payment. Do not enter a 30-year advertised jackpot unless you receive all of it this year.
Salary, business income and other ordinary income before the 2026 standard deduction.
This quick model assumes you live in the same state where the prize is sourced. Cross-state claims need a separate review.
The tax engine uses the payment received this year. It does not convert an advertised jackpot into a made-up cash percentage.
FEDERAL LOTTERY TAX IN 2026
Why 24% withholding is not the same as your final federal tax
Lottery winnings are taxable gambling income. For qualifying lottery proceeds over $5,000, the payer generally withholds 24%, but your final income-tax bill is calculated under the normal federal brackets.
24%Regular federal withholding rate on qualifying lottery proceeds.
37%Top 2026 federal marginal rate.
$16,1002026 standard deduction for Single and Married Filing Separately.
$32,2002026 standard deduction for Married Filing Jointly.
The calculator estimates the extra federal tax caused by the prize. It calculates 2026 federal income tax once without the lottery payment and once with it, then shows the difference. It does not simply multiply the whole prize by 37%.
ALL 50 STATES + D.C.
2026 state tax treatment used by this calculator
The table separates flat or zero-tax states from states where a top rate is only a planning shortcut. Local taxes, deductions, exemptions, credits, nonresident sourcing and special lottery rules can change the final return.
Search the state table
Rates are current planning inputs checked for tax year 2026.
| State / D.C. | 2026 tax summary | What to know | Deeper guide |
|---|---|---|---|
| Alabama | Up to 5% | No in-state lottery. This is a resident state-income-tax planning rate for an out-of-state prize. | General state rules only |
| Alaska | No individual income tax | No state lottery and no individual state income tax. | General state rules only |
| Arizona | 2.5% flat | Flat 2026 individual income-tax rate. | Detailed state guide → |
| Arkansas | Up to 3.9% | 2026 top individual income-tax rate; detailed liability can differ. | Detailed state guide → |
| California | $0 on California Lottery prizes | California does not tax California Lottery winnings, including Powerball and Mega Millions tickets sold by the California Lottery. Out-of-state lottery winnings can be different. | Detailed state guide → |
| Colorado | 4.4% flat | Flat 2026 state income-tax rate; local rules are not modeled here. | Detailed state guide → |
| Connecticut | Up to 6.99% | Graduated state tax; this quick calculator uses the top 2026 rate as a planning estimate. | Detailed state guide → |
| Delaware | Up to 6.6% | Graduated state tax; detailed liability depends on taxable income and deductions. | Detailed state guide → |
| District of Columbia | Up to 10.75% | Graduated D.C. income tax; this page uses the top rate as a planning estimate. | Detailed state guide → |
| Florida | No individual income tax | Florida has no individual state income tax. | Detailed state guide → |
| Georgia | 4.99% flat | Georgia's 2026 individual income-tax rate is 4.99%. | Detailed state guide → |
| Hawaii | Up to 11% | No in-state lottery. Hawaii residents can still have state tax on out-of-state gambling income; this uses the top 2026 rate for planning. | General state rules only |
| Idaho | 5.3% flat | 2026 state rate used as a planning estimate. | Detailed state guide → |
| Illinois | 4.95% flat | Flat Illinois individual income-tax rate. | Detailed state guide → |
| Indiana | 2.95% + possible county tax | State rate shown; county income tax is not included in this quick estimate. | Detailed state guide → |
| Iowa | 3.8% flat | 2026 state rate used here; local or other adjustments are not modeled. | Detailed state guide → |
| Kansas | Up to 5.58% | Graduated state tax; the top rate is used only as a planning estimate. | Detailed state guide → |
| Kentucky | 3.5% flat | 2026 Kentucky state rate; some local taxes can exist and are not modeled here. | Detailed state guide → |
| Louisiana | 3% flat | 2026 Louisiana individual income-tax rate used here. | Detailed state guide → |
| Maine | Up to 7.15% + 2% high-income surcharge | For 2026, Maine adds a 2% surcharge on taxable income above the applicable high-income threshold. The quick estimate uses 9.15% as a high-income planning rate. | Detailed state guide → |
| Maryland | Up to 6.5% + county tax | Maryland county income tax can materially raise the total. County tax is not included in this quick estimate. | Detailed state guide → |
| Massachusetts | 5% + 4% high-income surtax | The 4% surtax applies above the annual high-income threshold. This page uses 9% as a large-prize planning rate. | Detailed state guide → |
| Michigan | 4.25% + possible city tax | State rate shown; some Michigan cities impose local income tax, which is not modeled here. | Detailed state guide → |
| Minnesota | Up to 9.85% | Graduated 2026 state tax; top rate used for a large-prize planning estimate. | Detailed state guide → |
| Mississippi | 4% above threshold | 2026 Mississippi individual income-tax rate above the state threshold. | Detailed state guide → |
| Missouri | Up to 4.7% | Graduated state tax; local tax can apply in some places and is not modeled. | Detailed state guide → |
| Montana | Up to 5.65% | 2026 top state individual income-tax rate. | Detailed state guide → |
| Nebraska | Up to 4.55% | 2026 top state individual income-tax rate. | Detailed state guide → |
| Nevada | No individual income tax | No state lottery and no individual state income tax. | General state rules only |
| New Hampshire | No individual income tax | New Hampshire has no broad individual state income tax. | Detailed state guide → |
| New Jersey | Up to 10.75% | Graduated state tax; top rate used as a large-prize planning estimate. | Detailed state guide → |
| New Mexico | Up to 5.9% | Graduated state tax; top rate used as a planning estimate. | Detailed state guide → |
| New York | Up to 10.9% + NYC/Yonkers if applicable | New York City or Yonkers tax can add to the state amount. Local tax is not included in this quick estimate. | Detailed state guide → |
| North Carolina | 3.99% flat | 2026 North Carolina flat individual income-tax rate. | Detailed state guide → |
| North Dakota | Up to 2.5% | Graduated state tax; top rate used as a planning estimate. | Detailed state guide → |
| Ohio | 2.75% above threshold + possible local tax | State rate shown; municipal and school-district taxes can matter and are not modeled here. | Detailed state guide → |
| Oklahoma | Up to 4.5% | 2026 top individual income-tax rate. | Detailed state guide → |
| Oregon | Up to 9.9% | Graduated state tax; some local taxes may also apply. | Detailed state guide → |
| Pennsylvania | 3.07% + possible local tax | State rate shown; local earned-income rules can vary and are not modeled here. | Detailed state guide → |
| Rhode Island | Up to 5.99% | Graduated state tax; top rate used as a planning estimate. | Detailed state guide → |
| South Carolina | 1.99% / 5.21% structure for 2026 | South Carolina changed its individual income-tax structure for tax year 2026. The quick large-prize estimate uses 5.21%. | Detailed state guide → |
| South Dakota | No individual income tax | No individual state income tax. | Detailed state guide → |
| Tennessee | No individual income tax | No individual state income tax. | Detailed state guide → |
| Texas | No individual income tax | No individual state income tax. | Detailed state guide → |
| Utah | 4.5% flat | No in-state lottery. This is a resident state-income-tax planning rate for an out-of-state prize. | General state rules only |
| Vermont | Up to 8.75% | Graduated state tax; top rate used as a planning estimate. | Detailed state guide → |
| Virginia | Up to 5.75% | Virginia reaches its top rate at a relatively low taxable-income level; this is still a planning estimate. | Detailed state guide → |
| Washington | No state tax on ordinary lottery winnings | Washington's capital-gains tax is separate; this quick lottery-income estimate uses $0 state tax. | Detailed state guide → |
| West Virginia | Up to 4.58% | West Virginia's 2026 rate cut is retroactive to January 1, 2026; top rate used here is 4.58%. | Detailed state guide → |
| Wisconsin | Up to 7.65% | Graduated state tax; top rate used as a planning estimate. | Detailed state guide → |
| Wyoming | No individual income tax | No individual state income tax. | Detailed state guide → |
CASH OPTION VS. ANNUITY
Do not estimate a cash jackpot by automatically using 60%
The cash value of a jackpot is not a fixed percentage. It changes with the advertised jackpot, bond yields and the game’s actual cash-option calculation. Use the official cash value published for that draw.
Enter the payment received in 2026
Federal withholding can apply to annuity payments too. Future payments are taxed under the tax rules in effect when those payments are received, so this page does not pretend today’s rules will remain unchanged for decades.
WHEN HOME STATE ≠ TICKET STATE
Cross-state lottery tax can involve more than one state
If you live in one state and win a ticket bought in another, source-state rules, resident-state tax and credits for tax paid to another state can all matter. The quick calculator above deliberately does not guess at that interaction.
Use the detailed state calculator for a large or cross-state prize. This page is built for a first-pass estimate. A jackpot-sized claim can justify state-specific tax advice before you choose a payout or make estimated-tax payments.
GO DEEPER
More U.S. lottery tax tools
U.S. LOTTERY TAX FAQ
Questions lottery winners ask about federal and state tax
Are lottery winnings taxable by the IRS?
Yes. The IRS treats lottery winnings as taxable gambling income. Cash prizes and the fair market value of noncash prizes are included in income.
Is the 24% federal withholding the final tax rate?
No. For qualifying lottery proceeds over $5,000, regular federal gambling withholding is generally 24%, but your final federal income-tax liability is calculated under the normal tax brackets. A large prize can push part of your income into the 37% bracket.
Why does this calculator ask for filing status and other income?
Because federal income tax is progressive. The tax caused by a lottery prize depends on the income you already have, your filing status and the 2026 standard deduction. This calculator estimates the extra federal tax by comparing your federal tax before and after the prize.
Should I enter the advertised jackpot or the cash option?
Enter the amount that is actually taxable to you in 2026. If you choose a cash option, use the official cash value rather than assuming a fixed percentage of the advertised jackpot. If you choose an annuity, enter the payment you expect to receive this year.
Does every state tax lottery winnings?
No. Some states have no individual income tax. California also exempts California Lottery winnings, including Powerball and Mega Millions tickets sold by the California Lottery. Other states tax lottery or gambling income under their normal income-tax rules.
What if I live in one state and bought the winning ticket in another?
Cross-state lottery taxation can involve source-state tax, resident-state tax and credits for tax paid to another state. This quick calculator assumes a same-state situation. Use the detailed state guide or a qualified tax professional for a cross-state claim.
Does this calculator include city or county taxes?
No. Local tax can matter in places such as New York City, Yonkers, Maryland counties, some Indiana counties and some Ohio municipalities. The result panel flags states where local tax may be relevant.
Can I deduct gambling losses against lottery winnings?
For federal tax, casual gamblers may deduct gambling losses only if they itemize, and only up to the amount of gambling winnings, subject to IRS recordkeeping rules. This calculator does not model gambling-loss deductions.
What if I am not a U.S. tax resident?
This calculator is built for U.S. resident taxpayers. The IRS generally applies 30% withholding to U.S.-source gambling winnings paid to nonresident aliens unless a treaty or another rule changes the result.
What form will I receive after a large lottery win?
Lottery winnings that meet the reporting rules are generally reported on Form W-2G. If a single winning ticket belongs to more than one person, Form 5754 can be used by the person receiving the prize to provide the payer with each winner's information and share.
PRIMARY SOURCES & 2026 CHECKS
Where the tax rules on this page come from
Federal rules are sourced to the IRS. State rates are cross-checked against current state guidance and the current 2026 state-rate dataset; unusual state rules are routed to the detailed state guides.
IRS Publication 505 (2026)24% regular withholding on qualifying lottery winnings and estimated-tax guidance. IRS — 2026 tax bracketsFederal brackets and standard deductions used in the calculator. IRS Topic 419Lottery and other gambling winnings are taxable income; federal loss and reporting rules. IRS Publication 515General 30% U.S. gambling-winnings withholding rule for nonresident aliens, subject to treaty exceptions. California Franchise Tax BoardCalifornia Lottery winnings, including Powerball and Mega Millions sold by the California Lottery, are not taxed by California. Georgia Department of Revenue2026 flat individual income-tax rate of 4.99%. South Carolina Department of RevenueNew 2026 1.99% / 5.21% individual income-tax structure. West Virginia Tax Division2026 rate cut and 4.58% top rate, retroactive to January 1, 2026. Maine Revenue Services2026 rate schedule and 2% high-income surcharge.
This is a planning calculator, not a tax return
The federal model uses 2026 ordinary-income brackets and standard deductions and estimates the incremental federal tax caused by the prize. State results use a current flat, zero, special-exemption or top-rate planning input and do not reproduce every state deduction, exemption, credit, local tax or cross-state rule. It also does not model AMT, trusts, entities, charitable planning, itemized deductions or gambling-loss deductions.
Research checked: 22 September 2026 · U.S. resident taxpayer model · U.S. dollars