Lottery Tax Calculator
Calculate taxes on lottery winnings and estimate your take-home amount
Federal Tax
State Tax
Net Amount
Effective Tax Rate
Tax Breakdown
Federal Tax Rate
State Tax Rate
Total Effective Tax Rate
Take-Home Percentage
About Lottery Taxes
Lottery winnings are subject to both federal and state taxes. The IRS considers lottery winnings as gambling income, which is taxed as ordinary income at the federal level. Additionally, most states impose their own taxes on lottery winnings.
Lump Sum vs. Annuity
- Lump Sum: You receive about 60% of the advertised jackpot amount immediately, but pay taxes all at once.
- Annuity: You receive the full advertised amount spread over 29 annual payments, with taxes due each year on the amount received.
Tax Considerations
- Federal tax withholding is mandatory at 24% for gambling winnings over $5,000
- Additional federal taxes may be due when filing your tax return
- State tax rates vary significantly by location
- Some cities may impose additional local taxes
State Lottery Tax Rates (2024)
| State | Tax Rate |
|---|---|
| Alabama | 0.00% |
| Alaska | 0.00% |
| Arizona | 4.80% |
| Arkansas | 7.00% |
| California | 0.00% |
| Colorado | 4.00% |
| Connecticut | 6.99% |
| Delaware | 0.00% |
| Florida | 0.00% |
| Georgia | 5.75% |
Note: This calculator provides estimates only. Actual tax liability may vary based on your specific circumstances, local tax laws, and other factors. Consult with a tax professional for accurate tax planning.
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