Lottery Tax Calculator
Three numbers stand between the advertised jackpot and your account: the cash option (currently ~44.4% of advertised), the federal bill (24% withheld now, but the real rate on a big win is 37%), and your state (0% in nine states, 10.9% in New York). This calculator runs all three, for all 50 states.
On a $100M advertised jackpot, the lump sum is ~$44M cash; after the real 37% federal rate a no-tax-state winner nets ~$28M — a New York City winner nets ~$21M. The 24% withholding is a down payment, not the bill.
- Federal withholding24% (over $5,000)
- Real federal top rate (2026)37%
- Cash option today~44.4% of advertised
- Highest stateNY 10.9% (+3.876% NYC)
- No-tax states9 + CA (exempts lottery)
July 13, 2026 Powerball: $478M advertised / $212.2M cash (44.4%). Sources below; state rates verified July 2026.
Estimates for a single filer using 2026 federal brackets (top rate 37% above $640,600); state figure uses the withholding rate below — several states collect more at filing (noted). Local taxes (NYC +3.876%, Yonkers +1.826%) not included. Big money deserves a real advisor.
State lottery withholding, 2026
| State | Withholding | Notes |
|---|---|---|
| AR | 3.7% | — |
| AZ | 2.5% | Also withholds from nonresidents |
| CA | 0% | CA Lottery prizes exempt from CA income tax |
| CO | 4% | Final CO rate 4.4% at filing |
| CT | 6.99% | — |
| DC | 10.75% | — |
| DE | 0% | No withholding, but taxable in DE (top 6.6%) at filing |
| FL | 0% | No state income tax |
| GA | 4.99% | — |
| IA | 3.8% | — |
| ID | 5.3% | — |
| IL | 4.95% | — |
| IN | 2.95% | — |
| KS | 5% | Final KS rate 5.7% |
| KY | 3.5% | — |
| LA | 3% | — |
| MA | 5% | Final MA rate up to 9% incl. millionaire surtax |
| MD | 9.5% | Nonresidents: 8.75%. Also withholds from out-of-state winners |
| ME | 5% | Final ME top rate 7.15% |
| MI | 4.25% | — |
| MN | 7.25% | Final MN top rate 9.85% |
| MO | 4% | Final MO rate 4.7% |
| MS | 4% | — |
| MT | 5.65% | — |
| NC | 3.99% | — |
| ND | 2.9% | Lowest withholding state |
| NE | 4.55% | — |
| NH | 0% | No state tax on lottery prizes |
| NJ | 8% | 5% withheld $10,001–$500K; 8% above $500K; top NJ rate 10.75% at filing |
| NM | 5.9% | — |
| NY | 10.9% | Highest in the U.S. NYC residents +3.876%; Yonkers +1.826% |
| OH | 2.75% | Flat 2.75% (2026, Ohio Rev. Code 5747.062) |
| OK | 4.5% | — |
| OR | 8% | Final OR top rate 9.9% |
| PA | 3.07% | Taxable since 2016 — flat 3.07% |
| RI | 5.99% | — |
| SC | 6% | — |
| SD | 0% | No state income tax |
| TN | 0% | No state income tax |
| TX | 0% | No state income tax |
| VA | 4% | Final VA top rate 5.75% |
| VT | 6% | Final VT top rate 8.75% |
| WA | 0% | No state income tax |
| WI | 7.65% | — |
| WV | 4.82% | — |
| WY | 0% | No state income tax |
Rates = what the lottery withholds from a resident’s prize over $5,000 (NJ: over $10,000). No lottery is sold in Alabama, Alaska, Hawaii, Nevada, Utah. Per-state withholding from USA Mega's July 2026 jackpot analysis, cross-checked against official sources for NY (Pub 140-W), CA (calottery), NJ (TB-20R), MD (mdlottery FAQ: 9.5%/8.75%), OH (R.C. 5747.062: 2.75%).
Lump sum vs. annuity, honestly
Powerball & Mega Millions annuity = 30 graduated payments over 29 years, each 5% larger than the last. First payment ≈ 1.505% of the advertised jackpot; the 30th ≈ 6.2%. The advertised number is the annuity total; the cash option is what the annuity would cost to fund today — currently about 44.4% of advertised (July 13, 2026 Powerball: $478M advertised / $212.2M cash (44.4%)), well below the ~60% of the low-rate era. The annuity also spreads the tax hit: each year’s payment is taxed in that year, which keeps early payments partly out of the top bracket and protects winners from themselves — the reason most financial pros quietly respect it even though nearly everyone takes the cash.
Frequently asked questions
How much tax do you pay on lottery winnings?
24% federal is withheld immediately on prizes over $5,000, but jackpot-sized wins are taxed at the top 37% rate when you file — plan on roughly 37% federal plus your state's rate (0% to 10.9%).
Which states don't tax lottery winnings?
Florida, Texas, Washington, South Dakota, Tennessee, Wyoming, New Hampshire and Alaska/Nevada (no lottery, no income tax) — plus California, which exempts California Lottery prizes by statute.
How much is the lump sum on a $100 million jackpot?
At the current ~44.4% cash ratio, about $44 million before taxes — roughly $28 million after the 37% federal rate in a no-tax state.
How does the 30-year annuity work?
30 payments over 29 years, each 5% larger than the last: the first year is about 1.5% of the advertised jackpot, the final payment about 6.2%. Each payment is taxed in its own year.
Why is more federal tax due at filing than was withheld?
The lottery withholds a flat 24%, but income above $640,600 (single, 2026) is taxed at 37% — on an eight-figure win, the gap between 24% withheld and ~37% owed is enormous. Set it aside or January will be memorable.
Sources & methodology
Sources: Powerball.com (current jackpot/cash value) · USA Mega jackpot analysis (state rates) · NY Pub 140-W · MD Lottery FAQ · Ohio R.C. 5747.062.
Withholding rates verified July 2026 against USA Mega's per-state analysis and official sources for NY, CA, NJ, MD and OH. Estimates only — engage a tax professional before claiming a prize.