Lottery Tax Calculator
Calculate how much you'd actually take home after federal and state taxes. Compare lump sum vs annuity payouts for any US lottery jackpot.
Lump Sum Breakdown
Lump Sum vs Annuity Comparison
| Lump Sum | Annuity (30 years) | |
|---|---|---|
| Gross Payout | $50.00M | $100.00M |
| Total Taxes (Fed + State) | $23.95M | $47.90M |
| Net Take-Home | $26.05M | $52.10M |
| Annual Payment (annuity) | N/A | $1.74M/yr |
Annuity values assume equal payments over 30 years. Actual annuity payments are graduated (increase 5% annually). Tax calculations are estimates based on top marginal rates. Consult a tax professional for precise figures.
How Lottery Taxes Work
Federal taxes: The IRS withholds 24% on lottery winnings over $5,000. However, large jackpots fall into the top federal tax bracket of 37%, meaning you'll owe an additional 13% when you file your tax return.
State taxes: Most states tax lottery winnings at their top income tax rate. Eight states have no income tax (AK, FL, NH, SD, TN, TX, WA, WY), and California does not tax lottery winnings.
Lump sum vs annuity: The lump sum is typically about 50% of the advertised jackpot. While the total tax amount is lower, you receive significantly less. The annuity pays the full advertised amount over 30 annual payments (increasing 5% per year).
Local taxes: Some cities levy additional taxes. New York City adds 3.876%, and Yonkers adds 1.959%. Baltimore, Maryland also has local taxes.
Frequently Asked Questions
How are lottery winnings taxed in the United States?
Lottery winnings are taxed at both the federal and state level. The IRS withholds 24% on prizes over $5,000, but the top federal tax bracket is 37%, so you may owe an additional 13% at tax time. State taxes vary from 0% (in states like California, Florida, and Texas) to over 10% in states like New York.
Should I take the lump sum or annuity?
The lump sum is typically about 50% of the advertised jackpot but gives you immediate access to invest. The annuity pays the full amount over 30 annual payments (increasing ~5% per year) and results in lower total taxes since income is spread across years. The best choice depends on your financial goals and discipline.
Which states have no lottery tax?
Nine states do not tax lottery winnings: Alaska, California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Of these, California is unique — it has a state income tax but specifically exempts lottery winnings.
Are there local taxes on lottery winnings?
Yes, some cities add local taxes. New York City adds 3.876% on top of the 10.9% state rate, making it the highest-taxed location for lottery winners. Yonkers, NY adds 1.959%, and Baltimore, MD adds 3.2%.
How accurate is this lottery tax calculator?
Our calculator uses current 2026 federal tax brackets and up-to-date state tax rates that are verified quarterly. However, these are estimates — your actual tax liability may differ based on your total income, deductions, and filing status. Always consult a qualified tax professional for large winnings.
For entertainment purposes only. Lottery outcomes are random. Past results do not influence future drawings.
Tax calculations are estimates based on 2026 federal brackets and current state rates. Consult a qualified tax professional before making financial decisions.