LOTTERY TAX · TAX YEAR 2026

Lottery tax calculator

A lottery prize is taxed as ordinary income at the 2026 federal brackets, up to 37%, but the payer withholds 24%. On a $1,000,000 prize with $75,000 of wages, a single filer owes $340,080 of federal income tax, $100,080 more than is withheld, and from nothing to $103,564 of state tax.

Tax on your prize

Total tax on the prize: $370,780.25
Federal income tax: $340,080.25
Pennsylvania tax: $30,700.00
After-tax prize: $629,219.75
Effective rate: 37.08%

Federal withholding at 24%: $240,000.00
Pennsylvania withholding at 3.07% (2026): $30,700.00
Still owed at tax time: $100,080.25

Lottery tax by state

Each state's 2026 tax on a $1,000,000 prize from its own lottery, or another state's where it has none, for a single filer with $75,000 of wages. Federal tax is $340,080 in every state. Indiana figures include Marion County tax. Maryland figures include Montgomery County tax. New York figures exclude New York City tax.

State tax on a $1,000,000 lottery prize — tax year 2026
State	State tax	Lottery withholding
AlabamaNo state lottery; 2% to 5%	$32,996	No state lottery
AlaskaNo income tax or state lottery	$0	No state lottery
Arizona2.5% flat	$25,000	At its published rate
Arkansas2% to 3.7%	$37,287	3.7% over $5,000 (2026)
CaliforniaOwn lottery's prizes exempt; others 1% to 12.3%	$0	None
Colorado4.4% flat	$44,664	4% over $5,000 (2026)
Connecticut2% to 6.99%	$71,618	6.99% of $2,000 or more (2026)
Delaware2.2% to 6.6%	$66,000	None
District of Columbia4% to 10.75%	$94,428	At its published rate
FloridaNo income tax	$0	None
Georgia4.99% flat	$49,900	4.99% over $5,000 (2026)
HawaiiNo state lottery; 1.4% to 11%	$103,564	No state lottery
Idaho5.3% flat	$53,000	5.3% over $5,000 (2026)
Illinois4.95% flat	$49,645	4.95% of $1,000 or more (2026)
Indiana2.95% flat plus county	$49,700	At its published rate
Iowa3.8% flat	$38,000	3.8% over $600 (2026)
Kansas5.2% to 5.58%	$55,800	5% over $5,000 (2026)
Kentucky3.5% flat	$35,000	3.5% over $5,000 (2025)
Louisiana3% flat	$30,000	3% of $5,000 or more (2026)
Maine5.8% to 7.15%	$74,458	7.15% over $5,000 (2026)
Maryland2% to 6.5% plus county	$91,946	9.5% over $5,000 (2025)
Massachusetts5% to 9%	$50,000	5% over $5,000 (2026)
Michigan4.25% flat	$42,500	At its published rate
Minnesota5.35% to 9.85%	$96,314	7.25% over $5,000 (2026)
Mississippi4% flat	$40,000	At its published rate
Missouri2% to 4.7%	$47,054	4% over $600 (2026)
Montana4.7% to 5.65%	$56,500	At its published rate
Nebraska2.46% to 4.55%	$45,500	3.5% over $5,000 (2026)
NevadaNo income tax or state lottery	$0	No state lottery
New HampshireNo income tax	$0	None
New JerseyOwn lottery's prizes taxed over $10,000; 1.4% to 10.75%	$79,933	5% over $10,000, 8% over $500,000 (2026)
New Mexico1.5% to 5.9%	$57,474	At its published rate
New York3.9% to 10.9%	$69,636	At its published rate
North Carolina3.99% flat	$39,900	3.99% of $600 or more (2026)
North Dakota1.95% to 2.5%	$23,947	2.5% over $5,000 (2026)
Ohio2.75% flat	$27,559	2.75% of $600 or more (2026)
Oklahoma2.5% to 4.5%	$45,000	At its published rate
OregonOwn lottery's prizes taxed over $600; 4.75% to 9.9%	$99,326	8% of $1,500 or more (2026)
Pennsylvania3.07% flat	$30,700	3.07% over $5,000 (2026)
Rhode Island3.75% to 5.99%	$59,064	At its published rate
South Carolina1.99% to 5.21%	$52,384	At its published rate
South DakotaNo income tax	$0	None
TennesseeNo income tax	$0	None
TexasNo income tax	$0	None
UtahNo state lottery; 4.45% flat	$44,728	No state lottery
Vermont3.35% to 8.75%	$84,652	6% over $5,000 (2026)
Virginia2% to 5.75%	$57,500	4% over $5,000 (2026)
WashingtonNo income tax	$0	None
West Virginia2.11% to 4.58%	$45,800	At its published rate
Wisconsin3.5% to 7.65%	$70,818	7.65% of $2,000 or more (2026)
WyomingNo income tax	$0	None

Lottery tax questions

How much tax is due on a $1,000,000 lottery prize?

A single filer with $75,000 of wages owes $340,080 of federal income tax on a $1,000,000 prize in every state. State tax adds from nothing to $103,564, in Hawaii.

Is 24% federal withholding enough to cover the tax on a lottery prize?

Not on a large prize. The payer withholds 24% of a prize over $5,000, but the prize is taxed at the ordinary 2026 brackets, up to 37%. On a $1,000,000 prize with $75,000 of wages, $240,000 is withheld against $340,080 of federal tax, leaving $100,080 to pay. On a $10,000 prize the tax is $2,200 and $2,400 is withheld, $200 more than the tax.

When does a lottery send a Form W-2G?

For 2026, when a prize is at least $2,000 and at least 300 times the ticket's price. The prize is taxable income whether or not a form is sent.

Is a lottery annuity taxed differently from a lump sum?

Each payment is taxed in the year it is received. A lump sum is taxed in full the year it is paid; annuity payments are taxed each year as they arrive, at that year's rates. Enter the cash received this year.

Which states don't tax lottery winnings?

The nine states with no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. California does not tax California Lottery prizes. New Jersey does not tax its own lottery's prizes of $10,000 or less, and Oregon its own lottery's winnings of $600 or less per ticket.

What the calculator leaves out

Each state's page lists the rules its calculator does not apply.

Federal tax stacks the prize on wages after the 2026 standard deduction and taxes it at the ordinary brackets. Withholding treats the whole prize as winnings, though the IRS tests winnings minus the wager. The calculator takes the cash received this year: a lump sum is taxed in full the year it is paid, and annuity payments are taxed each year as they are received. Gambling losses are left out; only filers who itemize can deduct them, and from 2026 only up to 90% of losses. Tax another state may charge on a ticket bought there is left out.

Sources

Read the full assumptions and sources.