Lottery Tax Calculator
See how much of a lottery prize you keep after taxes in 2026. Enter the prize, choose lump sum or annuity and your state to estimate federal tax, the 24% withholding, state tax and your take-home.
Free · No sign-up · Runs in your browser · Last reviewed November 2026
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About the Lottery Tax Calculator
Lottery winnings are taxed as ordinary income. This calculator applies the 2026 federal brackets to your prize on top of your other income, compares the result with the 24% that is withheld when you claim, and adds state tax at the rate you choose. It handles both a cash prize and a jackpot paid as a 30-year annuity.
How to use it
- Enter the prize amount and choose whether it is a cash (lump-sum) prize or an advertised jackpot paid as an annuity.
- Choose your filing status, add your other taxable income and select your state to fill in a state tax rate.
- Read the federal tax, state tax, withholding and your estimated take-home.
How lottery winnings are taxed
Lottery prizes are ordinary income for federal tax. Two things happen:
- Withholding: the lottery withholds 24% for the IRS when the prize is more than $5,000.
- Final tax: the prize is added to your other income and taxed through the 2026 brackets, up to 37% on income above $640,600 for single filers ($768,700 joint). You pay the difference when you file.
- State tax: most states tax the prize as income; a few do not.
Example: a $1,000,000 cash prize for a single filer with no other income. Taxable income is $1,000,000 − $16,100 = $983,900 and federal tax is about $320,000. The lottery withholds $240,000, so about $80,000 more is due at tax time.
Federal tax on lottery winnings by prize size (2026)
Cash prize, single filer, standard deduction, no other income, before state tax:
| Cash prize | Withheld (24%) | Federal income tax | Effective rate | Extra due at filing | After federal tax |
|---|---|---|---|---|---|
| $10,000 | $2,400 | $0 | 0.0% | $-2,400 | $10,000 |
| $50,000 | $12,000 | $3,820 | 7.6% | $-8,180 | $46,180 |
| $100,000 | $24,000 | $13,170 | 13.2% | $-10,830 | $86,830 |
| $250,000 | $60,000 | $51,304 | 20.5% | $-8,696 | $198,696 |
| $500,000 | $120,000 | $138,134 | 27.6% | $18,134 | $361,866 |
| $1,000,000 | $240,000 | $320,000 | 32.0% | $80,000 | $680,000 |
| $5,000,000 | $1,200,000 | $1,800,000 | 36.0% | $600,000 | $3,200,000 |
| $10,000,000 | $2,400,000 | $3,650,000 | 36.5% | $1,250,000 | $6,350,000 |
| $50,000,000 | $12,000,000 | $18,450,000 | 36.9% | $6,450,000 | $31,550,000 |
| $100,000,000 | $24,000,000 | $36,950,000 | 37.0% | $12,950,000 | $63,050,000 |
| $500,000,000 | $120,000,000 | $184,950,000 | 37.0% | $64,950,000 | $315,050,000 |
Lump sum vs annuity
Powerball and Mega Millions advertise the annuity jackpot: 30 payments over 29 years, each 5% larger than the last. The cash option is the present value of that prize and is much smaller than the advertised number; the lottery publishes the cash value for every drawing. Enter the cash value as a lump-sum prize, or the advertised jackpot as an annuity, to compare both after tax.
State taxes on lottery winnings
The state selector fills in each state's top income tax rate as an estimate; change the rate if your state taxes lottery prizes differently. Some states also tax non-residents who buy a winning ticket there, and cities such as New York City add a local tax (see the NYC income tax calculator). Compare state taxes with the income tax by state tool.
Frequently asked questions
How much tax do you pay on lottery winnings?
The IRS withholds 24% of prizes over $5,000 up front, but lottery winnings are taxed as ordinary income, so large prizes are taxed at up to 37%. Most states add their own income tax, from 0% to about 10.9%.
How much tax on $1 million lottery winnings?
On a $1,000,000 cash prize a single filer with no other income owes about $320,000 of federal income tax in 2026 (32.0%). $240,000 is withheld when you claim the prize and about $80,000 more is due with your return, plus any state tax.
Which states do not tax lottery winnings?
States with no tax on wage income (Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming) do not tax lottery prizes, and California exempts California Lottery winnings. Alaska and Nevada have no income tax but also no state lottery.
Is the lump sum or the annuity better for taxes?
The lump sum is taxed all at once, mostly at the top 37% rate. The annuity spreads the prize over 30 payments that grow 5% a year, so each payment is taxed in the year you receive it. For jackpots both end up mostly in the top bracket; the bigger difference is that the cash value is far smaller than the advertised jackpot.
Do I have to pay tax on small lottery prizes?
Yes. All gambling winnings are taxable income and must be reported on your return, even when no tax is withheld and no Form W-2G is issued.
How much tax is withheld from lottery winnings?
24% federal withholding applies when winnings minus the wager exceed $5,000. Many states withhold state tax too. Withholding is only a prepayment: your final tax depends on your total income for the year.
Official sources
Last reviewed: November 2026. Estimate for planning only, not tax advice. State rules for lottery prizes vary; confirm with your state lottery or revenue department.