How much would you keep?
Estimate your lottery prize after federal and state taxes.
Lottery Tax Calculator
Estimate your lottery take-home payout after federal, state, and supported local taxes. Compare withholding with estimated final tax, then model cash or annuity payments for the 2026 tax year.
Maintained byJacob Dymond
Last reviewed
Tax year
Direct Answer
How Much Tax Do You Pay on Lottery Winnings?
Lottery winnings are taxable federal income. A payer can withhold 24% from qualifying lottery proceeds when the prize is paid, but that withholding is not necessarily your final federal tax liability.
Your final federal tax depends on progressive tax brackets, filing status, other income, deductions, credits, and the rest of your tax return. State tax and supported local tax can reduce the payout further, depending on where the ticket was bought and where you live.
The calculator estimates these layers from the prize, payout choice, filing status, other income, ticket state, residence details, and any supported local jurisdiction you enter.
Federal Tax Mechanics
Lottery Withholding vs. Your Final Tax Bill
Federal withholding is money sent to the IRS when a qualifying prize is paid. Your final federal tax liability is calculated later on your full return, so the two amounts can differ.
Why 24% withholding is not your final tax rate
The payer generally withholds 24% from qualifying lottery proceeds. That payment is credited on your return. The final calculation uses progressive federal brackets and your total taxable income, filing status, deductions, and credits. A smaller prize can be overwithheld, while a large prize can leave more tax due.
A $10,000 lottery tax example
For this lower-income example, 24% withholding is greater than the estimated final federal tax, so the model shows a potential refund.
- Withheld at payout
- $2,400.00
- Estimated final federal tax
- $0.00
- Estimated filing difference
- $2,400.00 potential refund
A $1 million lottery tax example
Progressive brackets push the estimated final federal tax above the amount withheld, so the model shows a potential balance due.
- Withheld at payout
- $240,000.00
- Estimated final federal tax
- $320,000.25
- Estimated filing difference
- $80,000.25 potentially due
Both examples use a gross cash prize, a single filer, the 2026standard deduction, and no other income, credits, or itemized deductions. State and local taxes are excluded. Your full return can produce a different result.
Take-Home Estimates
How Much Do You Keep After Lottery Taxes?
The amount you keep depends on the cash prize, progressive federal tax, filing status, other income, and the state and supported local taxes that apply. These 2026 examples show how that range changes as the prize grows.
Swipe horizontally to compare all columns.
The $1,000 row shows that a prize can be taxable without standard federal withholding. The $10,000 and $1 million rows show why withholding and final federal liability can move in opposite directions. Larger prizes show how progressive tax and location scale.
Best case uses Florida; worst case uses New York City. Each row is a gross lump-sum cash prize for a single filer using the 2026 standard deduction, no other income, and no itemized deductions or credits.
State Comparison
Lottery Taxes by State
State tax treatment can change a lottery payout substantially. This national comparison uses 2026 assumptions to show the range, then routes exact rates, residency rules, local details, and sources to each jurisdiction calculator.
States with no state tax on lottery winnings
The current model includes 8 jurisdictions with an in-state lottery and no modeled state tax on the prize. A 0% result can reflect no individual income tax or a lottery-specific exemption, so the reason still matters.
Where local lottery taxes can matter
Supported local overlays currently appear for New York, Maryland, Ohio. Local coverage is not universal, and the applicable city or county rule is explained on the relevant state calculator.
Find your state lottery tax calculator
Compare modeled state tax, payout-time withholding, and a $1 million cash-prize estimate across all 52 jurisdictions. Open a calculator for resident and nonresident rules, supported local tax, and the sources used for that jurisdiction.
Read the nonresident lottery tax guide
Showing 52 of 52 jurisdictions
Swipe horizontally to compare all columns.
Current Game Examples
Powerball and Mega Millions Winnings After Taxes
Powerball and Mega Millions use the same federal income-tax framework. The current jackpot, cash value, payout choice, and applicable state and local rules create the difference in take-home amounts.
Powerball winnings after taxes
Use the published cash value for a one-time payout estimate. The advertised jackpot is the annuity total before tax, not the cash prize.
Advertised jackpot
$516M
Published cash value
$212.6M
Florida cash estimate
$133,987,999.75
NYC cash estimate
$102,781,005.70
The cash examples assume a single filer, the 2026 standard deduction, no other income, and current modeled state rules. The game name does not create a separate federal tax rate.
Mega Millions winnings after taxes
Use the published cash value for a one-time payout estimate. The advertised jackpot is the annuity total before tax, not the cash prize.
Advertised jackpot
$364M
Published cash value
$147.3M
Florida cash estimate
$92,848,999.75
NYC cash estimate
$71,293,345.70
The cash examples assume a single filer, the 2026 standard deduction, no other income, and current modeled state rules. The game name does not create a separate federal tax rate.
Current jackpot and cash values come from Lottery Valley's live prize data. Payment structures are checked against official game sources in Sources and Methodology. Examples exclude itemized deductions, credits, and individual claim circumstances.
Payout Format
Lump Sum vs. Annuity After Taxes
The key tax difference is timing: a lump sum concentrates the cash option in one tax year, while a jackpot annuity is generally paid as one immediate payment plus 29 increasing annual payments and taxed as received.
Cash option
Enter the published cash value to estimate a one-time lottery cash payout after taxes. Do not use the larger advertised annuity value as the lump-sum prize unless that is the actual cash offer.
Annuity
An annuity calculator estimates payments received and taxed over time. Future tax rates, other income, inflation, and investment returns can change the eventual comparison.
Swipe horizontally to compare all columns.
Example models a $100 million advertised jackpot in a 0% state and uses the official 5% graduated-payment structure. It assumes a single filer, the 2026 standard deduction, no other income, and unchanged tax rules for illustration; actual future tax outcomes cannot be known.
Calculation Method
How the Lottery Tax Calculator Works
The calculator starts with the payable prize, estimates tax withheld at payout, then calculates an estimated final federal, state, and supported local tax result.
- 1. Start with the payable prize
- For a cash estimate, use the published cash option. For an annuity estimate, use the advertised jackpot or other annuity prize value.
- 2. Estimate federal withholding
- Regular federal lottery withholding is generally 24% when proceeds after the wager exceed $5,000, but withholding is only a prepayment.
- 3. Estimate final federal tax
- The calculator applies 2026 federal brackets, the selected filing status and its standard deduction, plus any other annual income entered.
- 4. Apply state and local rules
- Sanity-managed state data supplies state rates, withholding rules, exemptions, and supported local tax areas.
- 5. Reconcile the filing balance
- Take-home uses estimated final tax. The filing balance shows the difference between payout-time withholding and that estimated liability.
Lottery Tax FAQs
Answers to remaining questions about withholding thresholds, local coverage, multistate taxes, and estimate limits for the 2026 tax year.
What prize amount triggers federal lottery withholding?
Regular federal withholding generally applies at 24% when lottery proceeds after the wager exceed $5,000. The IRS rule uses lottery proceeds after the wager. This calculator applies the threshold to the prize amount entered and does not separately subtract ticket cost. Separate reporting or backup-withholding rules can also apply.
Does the calculator include local lottery taxes?
Yes, where a supported local jurisdiction is available in the calculator, including New York City, Yonkers, and listed Maryland counties and cities. Local coverage is not universal. Select an available local area and review its state calculator for the modeled rules and sources.
Do you pay lottery taxes where you bought the ticket or where you live?
Potentially both. The ticket state may impose source-state tax or withholding, while your residence state may tax the income and may allow a credit for tax paid elsewhere. Local and nonresident rules can also apply. Use the relevant state calculator and nonresident guidance before relying on a multistate estimate.
How accurate is this lottery tax calculator?
It is a planning estimate based on 2026 federal brackets, your selected filing status and standard deduction, other income entered, and current modeled state rules. It does not model itemized deductions, credits, alternative minimum tax, every treaty or nonresident rule, or future tax-law changes.
Sources and Methodology
Sources and Methodology
Federal assumptions use current IRS guidance. Game-payment descriptions use official Powerball and Mega Millions sources. State inputs come from the published state calculator records, and each state page contains the rules and source details used for that jurisdiction.
Sources and methodology checked September 3, 2026. Federal The national page summarizes the state process rather than presenting a complete jurisdiction-by-jurisdiction source ledger.
- Last reviewed
- September 3, 2026
- Tax year
- 2026
- Reference groups
- Federal + game + state
| Source | Category | What it supports | Verified |
|---|---|---|---|
| IRS Instructions for Forms W-2G and 5754 | IRS / federal | Federal reporting and withholding instructions for gambling and lottery winnings. | September 3, 2026 |
| IRS Publication 525 - Taxable and Nontaxable Income | IRS / federal | Federal income-tax treatment for taxable income categories, including gambling winnings. The latest IRS publication page is checked during federal source review. | September 3, 2026 |
| IRS tax inflation adjustments for tax year 2026 | IRS / federal | Federal tax bracket and inflation-adjustment source used for final tax examples. | September 3, 2026 |
| Powerball jackpot payment options | Official game rules | Powerball cash-option and annuity descriptions, including the immediate payment plus 29 increasing annual payments. | September 3, 2026 |
| Mega Millions cash value and annuity | Official game rules | Mega Millions cash-option and annuity descriptions, including the immediate payment plus 29 increasing annual payments. | September 3, 2026 |
| State tax authority and lottery source review | State tax data | State tax rates, withholding thresholds, local overlays, no-tax states, and state-page calculator assumptions. | September 3, 2026 |
| Tax Foundation state income tax rates | State rate reference | Cross-checking state income tax rate ranges used in national comparison examples. | September 3, 2026 |
| Federation of Tax Administrators | State agency directory | Finding and validating state tax authority sources when reviewing state-specific calculator data. | September 3, 2026 |
Calculation assumptions and limits
- Federal inputs
- Federal examples use 2026 brackets, the selected filing status and standard deduction, and other income entered. The IRS withholding rule uses lottery proceeds after the wager. This calculator applies the threshold to the prize amount entered and does not separately subtract ticket cost.
- State and local tax
- State rows are built from the same state calculator data that powers the state-specific pages. Local overlays are summarized on the hub and expanded on state pages.
- Game payout inputs
- Current jackpot and cash values come from Lottery Valley's live prize data. Powerball and Mega Millions annuity examples use the official immediate-payment and 29 increasing annual-payment structure.
- Estimate limits
- The model does not cover itemized deductions, credits, alternative minimum tax, every multistate or international filing rule, or future tax-law changes.
Not tax advice: Lottery Valley publishes educational tools and summaries. For major wins or filing decisions, work with a qualified CPA, tax attorney, or financial professional.
Corrections: Use our corrections policy or contact page to report a source change or page issue.
Responsible play
Play responsibly
Lottery draws are chance-based. Predictions, generators, and strategy content do not guarantee winnings — and age or access rules depend on local law and the official operator.
If gambling stops feeling fun, free confidential support is available in every market we cover. Start with the country directory beside this section.
Lottery Valley is an independent publisher, not a lottery operator.
Tax calculator disclaimer
Tax estimates are educational examples only
Calculations use standard assumptions. Actual tax depends on filing status, income, deductions, residency, and current law — and using this tool does not create a legal, tax, or advisory relationship. Verify current rules with official sources and a qualified CPA, tax attorney, or financial professional before acting on a large lottery-winning scenario. Questions or corrections: hello@lotteryvalley.com.