Lottery Tax Calculator

Calculate taxes on lottery winnings and estimate your take-home amount

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

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.

State Lottery Tax Rates (2024)

StateTax Rate
Alabama0.00%
Alaska0.00%
Arizona4.80%
Arkansas7.00%
California0.00%
Colorado4.00%
Connecticut6.99%
Delaware0.00%
Florida0.00%
Georgia5.75%
Hawaii0.00%
Idaho7.40%
Illinois4.95%
Indiana3.23%
Iowa5.00%
Kansas5.00%
Kentucky5.00%
Louisiana4.25%
Maine7.15%
Maryland8.95%
Massachusetts5.00%
Michigan4.25%
Minnesota7.25%
Mississippi5.00%
Missouri4.00%
Montana6.90%
Nebraska5.00%
Nevada0.00%
New Hampshire0.00%
New Jersey8.00%
New Mexico6.00%
New York8.82%
North Carolina5.25%
North Dakota2.90%
Ohio4.00%
Oklahoma4.00%
Oregon8.00%
Pennsylvania3.07%
Rhode Island5.99%
South Carolina7.00%
South Dakota0.00%
Tennessee0.00%
Texas0.00%
Utah0.00%
Vermont6.00%
Virginia4.00%
Washington0.00%
Washington DC8.50%
West Virginia6.50%
Wisconsin7.65%
Wyoming0.00%