PENNSYLVANIA LOTTERY TAX · TAX YEAR 2026

Pennsylvania lottery tax calculator

Pennsylvania taxes cash lottery prizes, Pennsylvania Lottery prizes included, at its flat 3.07% rate. On a $1,000,000 prize with $75,000 of wages, a single filer owes $30,700 of Pennsylvania tax and $340,080 of federal income tax, $370,780 in all, and keeps $629,220.

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

Pennsylvania tax by size of prize

What a single filer with $75,000 of wages owes on a prize, and what Pennsylvania withholds from it.

Pennsylvania tax on a lottery prize — tax year 2026
Prize	Federal tax	State tax	State withholding
$10,000	$2,200	$307	$307
$100,000	$23,064	$3,070	$3,070
$1 million	$340,080	$30,700	$30,700
$10 million	$3,670,080	$307,000	$307,000

Pennsylvania lottery tax questions

Does Pennsylvania tax lottery winnings?

Yes. Pennsylvania taxes cash lottery prizes, Pennsylvania Lottery prizes included, at its flat 3.07% rate.

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

A single filer with $75,000 of wages owes $340,080 of federal income tax and $30,700 of Pennsylvania tax on a $1,000,000 prize, $370,780 in all, and keeps $629,220. On a $100,000 prize, Pennsylvania tax is $3,070 and federal tax $23,064.

How much is withheld from a Pennsylvania lottery prize?

Pennsylvania withholds 3.07% for state tax and 24% for federal tax from a prize over $5,000. On a $1,000,000 prize, $270,700 is withheld against $370,780 of tax, leaving $100,080 to pay at tax time.

Can gambling losses reduce Pennsylvania tax on a lottery prize?

No. Pennsylvania allows no deduction for gambling losses, but the cost of wagers, Pennsylvania Lottery tickets included, can be subtracted from winnings of the same year with records.

What the calculator leaves out

Noncash Pennsylvania Lottery prizes, such as merchandise, are not taxed.

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.