Our up-to-date calculator gives you instant federal and state tax estimates for lottery prizes. See exactly how much you'll keep from your winnings with personalized results based on your location and payout choice.
Our calculator provides instant estimates of your after-tax lottery winnings based on 2025 federal and state tax rates. Enter your details below to see how much you'll actually keep after taxes are withheld.
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Did you know that lottery winners keep only about 60-70% of their jackpot after taxes? Our calculator helps you understand exactly what you'll take home.
When you win the lottery, federal and state taxes can significantly reduce your payout. Our lottery tax calculator provides an instant estimate of your after-tax winnings by factoring in the mandatory 24% federal tax withholding (applied to winnings over $5,000) and your state's specific tax rate.
To get an accurate calculation of your take-home amount, simply enter your:
The calculator will instantly show you your estimated after-tax winnings, federal tax amount, state tax amount, and for annuity selections, your annual payment amount over 30 years.
While the calculator provides an accurate estimate based on current tax rates, your final tax liability may be higher than the initial 24% withholding. Consult with a tax professional for personalized advice.
Tax rates and rules for lottery winnings vary significantly by state. Select your state below to see specific information:
Our calculator simplifies tax estimation in three easy steps:
Choose your state to apply the correct tax rate. State lottery taxes range from 0% in tax-free states like Florida and Texas to over 8% in states like New York.
Select lump sum for a one-time payment (typically 60-65% of the advertised jackpot amount before taxes) or annuity for payments spread over 30 years (the full advertised amount, but paid gradually).
Input your total lottery prize and click "Calculate After-Tax Winnings" to see your estimated take-home amount after federal and state tax deductions.
Lottery winnings are considered gambling income by the IRS and are subject to both federal and state taxes. Here's what you need to know about lottery taxation in 2025:
The IRS requires an automatic 24% federal tax withholding on lottery prizes exceeding $5,000. However, lottery winnings are considered ordinary income, so your actual tax burden depends on your total annual income and could reach up to 37% for the highest earners.
| 2025 Federal Tax Bracket | Single Filer Income Range | Tax Rate |
|---|---|---|
| Lowest Bracket | Up to $11,925 | 10% |
| Low-Middle Bracket | $11,926 - $48,475 | 12% |
| Middle Bracket | $48,476 - $103,350 | 22% |
| High Bracket | $197,301 - $250,525 | 32% |
| Highest Bracket | Over $626,350 | 37% |
Source: IRS Tax Inflation Adjustments for Tax Year 2025
State tax rates on lottery winnings vary significantly. Nine states don't tax lottery prizes at all, while others charge rates of up to 8.82%.
| State | Lottery Tax Rate | Key Notes |
|---|---|---|
| California | 0% | No state tax on lottery winnings |
| Florida | 0% | No state tax on lottery winnings |
| New York | 8.82% | Highest state tax rate + additional NYC tax if resident |
| Texas | 0% | No state tax on lottery winnings |
| Oregon | 8% | High state tax rate on gambling winnings |
Note: The table above shows selected states. Our calculator includes current tax rates for all 50 states.
Beyond federal and state income taxes, large lottery winners may face:
The payout option you choose significantly impacts your tax burden. Here's how lump sum and annuity options compare from a tax perspective:
For a $100 million jackpot winner in a high-tax state like New York:
Note: This simplified example doesn't account for investment growth, inflation, or changing tax laws.
While lottery winnings are always taxable, there are legal strategies that may help reduce your overall tax burden.
Donating a portion of your winnings to qualified charitable organizations can provide tax deductions that offset your taxable income. The IRS allows deductions of up to 60% of your adjusted gross income.
Selecting annuity payments spreads your winnings across multiple tax years, potentially keeping you in lower tax brackets and reducing your overall tax liability.
If you've incurred documented gambling losses, you can deduct these losses (up to the amount of your winnings) on Schedule A as itemized deductions. Keep detailed records of all gambling activities.
If you haven't claimed your ticket yet and lottery rules allow, establishing residency in a state with no income tax before claiming could save significant money. Consult with a legal and tax professional first.
For lottery winnings of significant size, it's highly recommended to work with:
Pro Tip: Assemble your professional team before claiming your prize. Many lottery winners make tax mistakes in the first days after winning that can't be corrected later.
The following examples illustrate how taxes impact lottery winnings across different scenarios.
| Category | Lump Sum Amount | Annuity Amount (per year) |
|---|---|---|
| Gross Winnings | $600,000 (60% of advertised) | $33,333 (over 30 years) |
| Federal Tax (24%) | -$144,000 | -$8,000 per year |
| State Tax (0%) | $0 | $0 |
| Net Payout | $456,000 | $25,333 per year |
| Category | Lump Sum Amount | Annuity Amount (per year) |
|---|---|---|
| Gross Winnings | $600,000 (60% of advertised) | $33,333 (over 30 years) |
| Federal Tax (24%) | -$144,000 | -$8,000 per year |
| State Tax (8.82%) | -$52,920 | -$2,940 per year |
| Net Payout | $403,080 | $22,393 per year |
For major jackpots like Powerball or Mega Millions, the tax implications become even more significant:
Note: Examples are simplified and don't include potential additional withholding based on total income or local taxes.
Where you live can make a difference of millions of dollars in how much of your lottery winnings you get to keep. Our calculator helps you see exactly how much state taxes impact your specific situation.
The content provided by Lottery Valley is for informational purposes only and is not intended to serve as tax, legal, or accounting advice. We recommend consulting a qualified tax professional, attorney, or accountant for personalized guidance regarding your federal and state tax obligations.
Tax laws and regulations change frequently. This calculator uses the most current information available for 2025 tax year projections, but actual rates and rules may change. If you find any inaccuracies or have corrections to share, please contact us at hello@lotteryvalley.com
Last updated: June 14, 2025
