Lottery Tax Calculator
The cash option has recently run 43% to 46% of the advertised jackpot.
Enter a prize amount and pick a state to see the take-home.
This calculator provides estimates for informational purposes only. It is not tax advice. It applies the state you live in to the whole prize and does not model withholding by the state where the ticket was bought, which a resident normally credits against their home state bill. Tax laws change frequently and individual circumstances vary. Consult a qualified tax professional for advice specific to your situation. Rates and rules reflect the 2026 tax year.
How To Use This Calculator
Enter what you would actually receive and where you claim it. The calculator stacks the prize on your other income, applies the federal brackets, then your state and any local tax.
Enter the prize
For a lump sum enter the cash value. For an annuity enter the advertised jackpot, which is the total of all 30 payments.
Pick lump sum or annuity
Switch between them to see how spreading the prize over 30 years changes the tax.
Set the state you live in
Your home state taxes the whole prize. It decides the state and local share.
Read the balance due
The 24% withheld at payout rarely covers the bill. The balance is what you owe when you file.
Frequently Asked Questions
How much tax is withheld from lottery winnings?
The payer withholds 24% of any prize over $5,000 before you receive it, under IRS section 3402(q). That is a prepayment, not the final tax. A jackpot pushes you into the 37% top federal bracket, so most of the remaining 13 points fall due when you file.
Is the lump sum or the annuity better for tax?
The annuity is taxed more lightly overall, because each of the 30 payments is taxed in its own year and climbs the brackets separately rather than landing in one. The lump sum is smaller to begin with, since the cash value is well below the advertised jackpot, but all of it is taxed at once.
Which state taxes my lottery prize?
The state where you claim the prize withholds first, and your home state taxes you as a resident, usually crediting what the first state took. Nine states have no income tax at all, so a prize claimed there carries only the federal share.
Do any states with income tax exempt lottery winnings?
California exempts prizes from its own lottery, including Powerball and Mega Millions on a ticket bought in California, but it taxes prizes from other states' lotteries. Delaware is often listed as exempt because its lottery withholds nothing at payout, which is not the same thing: Delaware Lottery winnings are still subject to Delaware income tax.
What happens with a prize under $5,000?
Nothing is withheld below that threshold, but the prize is still fully taxable and still has to be reported. Because nothing was held back, a small winner often owes rather than gets a refund.
The advertised jackpot is not a payment
A billion dollar jackpot is the sum of 30 payments made over 29 years, each 5% larger than the last, so the first is about 1.5% of the headline figure. The cash value offered instead has recently run 43% to 46% of it, and that ratio moves with interest rates. Compare the two here before assuming either number is what reaches your account.