Lottery Tax Calculator
Estimate federal and state taxes on lottery winnings — and see what you'd actually take home. Pick any of the 50 states or DC below, or use the calculator right now with 2026 rates.
Estimated Results
Estimated- Advertised Jackpot
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- Cash Value
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- Estimated Federal Tax
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- Estimated State Tax
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- Estimated Total Tax
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- Estimated Take-Home Amount
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Tax Details
Withholding is not your final tax — it is an advance payment credited against the estimated final liability below.
- Federal Withholding Held back when you are paid; credited against your final tax bill.
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- State Withholding Held back when you are paid; credited against your final tax bill.
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- Estimated Final Tax Liability Your estimated total tax bill — withholding counts toward this, it is not extra.
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- Effective Tax Rate Estimated total tax divided by the taxable amount.
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Estimates based on the amounts you entered and the selected tax year, filing status, and state. Federal tax is estimated using progressive brackets after the standard deduction; state tax uses a planning-rate estimate. Your actual tax bill will differ.
How lottery taxes work
Lottery winnings are ordinary income. The moment you claim a prize, two tax systems want a share: the federal government, which taxes winnings everywhere in the country, and your state, whose rules range from "no tax at all" to double-digit rates. What you actually receive is the prize minus both — minus what's already been withheld.
The advertised jackpot is almost never what you can take home. First, it's the annuity value — 30 payments over 29 years — not cash in hand. Second, taxes apply to whichever payout you choose. The calculator above walks through all of it: jackpot, cash value, federal tax, state tax, withholding, and take-home.
Federal vs. state taxes
Federal tax is the constant: winnings are taxed at progressive rates from 10% to 37% (2026), after the standard deduction for your filing status. On a jackpot-sized win, nearly all of it lands in the top brackets.
State tax is the variable. Nine states levy no individual income tax at all. California exempts lottery winnings specifically. Everywhere else, winnings are generally taxed as ordinary income — we estimate using each state's planning rate, shown on its page with the source and verification date.
Cash option vs. annuity
The cash option is a single lump sum — smaller than the advertised jackpot, taxed once, in one year. The annuity pays the full advertised amount as 30 yearly checks, each taxed in the year you receive it, which can keep you in lower brackets.
Neither is automatically better: the annuity's tax spreading competes with the time value of having the cash now. Toggle between them in the calculator to compare the after-tax outcome side by side.
State lottery tax calculators
Every state page has its own calculator (pre-set to that state), worked examples, and the sources behind the figures. Start typing to filter.
- Alabama State planning rate 5.00%
- Alaska No state income tax
- Arizona State planning rate 2.50%
- Arkansas State planning rate 3.90%
- California Lottery winnings exempt from state tax
- Colorado State planning rate 4.40%
- Connecticut State planning rate 6.99%
- Delaware State planning rate 6.60%
- District of Columbia State planning rate 10.75%
- Florida No state income tax
- Georgia State planning rate 5.19%
- Hawaii State planning rate 11.00%
- Idaho State planning rate 5.30%
- Illinois State planning rate 4.95%
- Indiana State planning rate 2.95%
- Iowa State planning rate 3.80%
- Kansas State planning rate 5.58%
- Kentucky State planning rate 3.50%
- Louisiana State planning rate 3.00%
- Maine State planning rate 7.15%
- Maryland State planning rate 6.50%
- Massachusetts State planning rate 9.00%
- Michigan State planning rate 4.25%
- Minnesota State planning rate 9.85%
- Mississippi State planning rate 4.00%
- Missouri State planning rate 4.70%
- Montana State planning rate 5.65%
- Nebraska State planning rate 4.55%
- Nevada No state income tax
- New Hampshire No state income tax
- New Jersey State planning rate 10.75%
- New Mexico State planning rate 5.90%
- New York State planning rate 10.90%
- North Carolina State planning rate 3.99%
- North Dakota State planning rate 2.50%
- Ohio State planning rate 2.75%
- Oklahoma State planning rate 4.50%
- Oregon State planning rate 9.90%
- Pennsylvania State planning rate 3.07%
- Rhode Island State planning rate 5.99%
- South Carolina State planning rate 6.00%
- South Dakota No state income tax
- Tennessee No state income tax
- Texas No state income tax
- Utah State planning rate 4.50%
- Vermont State planning rate 8.75%
- Virginia State planning rate 5.75%
- Washington No state income tax
- West Virginia State tax treatment under review
- Wisconsin State planning rate 7.65%
- Wyoming No state income tax
How We Calculate
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Start with the selected lottery amount. Enter the advertised jackpot and the cash option (or choose the annuity to estimate one annual payment).
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Determine the cash or taxable amount. For a lump sum, the cash option is the taxable amount. For an annuity, each annual payment is taxed in the year it is received.
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Apply applicable federal tax rules. Lottery winnings are taxed as ordinary income. The calculator subtracts the standard deduction for your filing status, then applies that year's progressive federal tax brackets.
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Apply applicable state rules. The calculator applies the state's configured planning rate. States that do not tax lottery winnings show $0 state tax. Local and city taxes are not included.
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Calculate estimated total tax. Estimated federal and state taxes are added together for the total estimated tax liability.
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Calculate estimated take-home amount. Estimated total tax is subtracted from the taxable amount. This is an estimate of final liability — withholding shown separately is what may be held back when you are paid, and it is credited against this liability.
Results are estimates for informational purposes only — not tax, legal, or financial advice. Your actual tax bill depends on your full tax return, the lottery's rules, and the laws in effect when you claim the prize.
Lottery tax FAQs
How does the lottery tax calculator work?
Enter the advertised jackpot, the cash option, your tax year, filing status, and state. The calculator estimates your federal tax using that year's progressive brackets and standard deduction, estimates state tax using the state's planning rate, and shows your take-home for a lump sum or a 30-year annuity.
What's the difference between federal and state lottery taxes?
Federal tax applies to lottery winnings everywhere in the US — winnings are ordinary income, taxed at 10% to 37% for 2026. State tax depends on where the winnings are taxed: nine states have no individual income tax, California exempts lottery winnings, and the rest tax winnings as ordinary income at their own rates.
Should I take the cash option or the annuity?
The annuity pays the full advertised jackpot as 30 annual payments, each taxed in the year you receive it — which can mean lower tax brackets each year. The lump sum is a smaller amount taxed all at once, but you get the money now. The calculator estimates both so you can compare.
Which states don't tax lottery winnings?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no broad individual income tax, so there's no state tax on winnings. California exempts California Lottery winnings from state tax. Federal tax still applies in every state.
Is the 24% withholding my final tax bill?
No. Federal law requires 24% withholding on lottery winnings over $5,000, but that's a prepayment credited against your final tax liability. On a large jackpot your actual federal rate is usually higher, and you settle the difference when you file.
Are these tax estimates exact?
No — they're planning estimates. Your actual tax depends on your full return: other income, deductions, credits, and the laws in effect when you claim the prize. State figures use a top-marginal planning rate and exclude local taxes. Where a state's data needs verification, the page says so instead of showing a figure.