Lottery Winnings After Taxes: Take-Home Pay by State
How much of a lottery prize you actually keep in every state, using 2026 federal and state tax rates. Worked out for a $1 million prize and a $100 million lump-sum jackpot, with local taxes and the common mistakes other lists make.
Tax year 2026 rates · Last updated September 2026
Where the Money Goes
On a big prize, the federal government takes the largest share no matter where you live. Your state decides how much more comes off.What Happens to a $100 Million Jackpot
Most people take the lump sum, so that’s the number that matters. For the big multi-state games, the cash option is usually around half of the advertised jackpot, depending on interest rates.| Step | Amount |
|---|---|
| Lump-sum (cash) prize | $100,000,000 |
| Federal tax withheld when you claim it (24%) | −$24,000,000 |
| Extra federal tax you owe at filing time | −$12,950,000 |
| After federal tax (no state tax, e.g. Texas or Florida) | $63,050,000 |
| Illinois state tax (4.95%) | −$4,950,000 |
| Take-home in Illinois | $58,100,000 |
| New York state tax (10.9%) | −$10,900,000 |
| Take-home in New York State | $52,150,000 |
| New York City resident tax (up to 3.876%) | about −$3,880,000 |
| Take-home for a New York City resident | about $48,270,000 |
Single filer, prize is the only income, 2026 federal brackets and standard deduction. Total federal tax on $100 million is about $36.95 million. That’s an effective rate just under 37%, because almost all of the prize falls in the top bracket.
Take-Home Pay in All 50 States and D.C.
What a single winner keeps after federal and state income tax. Local taxes are listed in the notes but not included in the totals.| State | Top state rate | Keep from $1M | Keep from $100M |
|---|---|---|---|
| AlabamaNo state lottery. | — | — | — |
| AlaskaNo state lottery. | — | — | — |
| Arizona | 2.5% | $655,000 | $60.55M |
| ArkansasTop rate cut to 3.7% for 2026. | 3.7% | $643,000 | $59.35M |
| CaliforniaCalifornia Lottery prizes are exempt. Residents still owe California tax on prizes from other states’ lotteries. | None | $680,000 | $63.05M |
| Colorado | 4.4% | $636,000 | $58.65M |
| ConnecticutAt this income level, the 6.99% rate effectively applies to the whole prize. | 6.99% | $610,000 | $56.06M |
| DelawareTaxed since 2010. Older articles still list Delaware as tax-free. | 6.6% | $615,000 | $56.45M |
| District of Columbia10.75% on income over $1 million. | 10.75% | $588,000 | $52.32M |
| FloridaNo state income tax. | None | $680,000 | $63.05M |
| GeorgiaFlat rate cut to 4.99% for 2026. | 4.99% | $630,000 | $58.06M |
| HawaiiNo state lottery. | — | — | — |
| Idaho | 5.3% | $627,000 | $57.75M |
| Illinois | 4.95% | $630,000 | $58.10M |
| IndianaPlus county income tax. | 2.95% | $650,000 | $60.10M |
| Iowa | 3.8% | $642,000 | $59.25M |
| Kansas | 5.58% | $624,000 | $57.47M |
| Kentucky | 3.5% | $645,000 | $59.55M |
| Louisiana | 3% | $650,000 | $60.05M |
| Maine | 7.15% | $609,000 | $55.90M |
| MarylandPlus county tax of 2.25% to 3.30%. | 6.5% | $622,000 | $56.56M |
| Massachusetts5%, plus a 4% surtax on income over $1,083,150. | 9% | $630,000 | $54.09M |
| Michigan | 4.25% | $638,000 | $58.80M |
| Minnesota | 9.85% | $587,000 | $53.21M |
| Mississippi | 4% | $640,000 | $59.05M |
| Missouri | 4.7% | $633,000 | $58.35M |
| Montana | 5.65% | $624,000 | $57.40M |
| Nebraska | 4.55% | $635,000 | $58.50M |
| NevadaNo state lottery. | — | — | — |
| New HampshireNo income tax. | None | $680,000 | $63.05M |
| New JerseyOnly prizes over $10,000 are taxed. 10.75% on income over $1 million. | 10.75% | $605,000 | $52.33M |
| New Mexico | 5.9% | $624,000 | $57.15M |
| New YorkNYC residents add up to 3.876%. Yonkers residents add 16.75% of their state tax. | 10.9% | $612,000 | $52.15M |
| North Carolina | 3.99% | $640,000 | $59.06M |
| North Dakota | 2.5% | $657,000 | $60.55M |
| Ohio | 2.75% | $653,000 | $60.30M |
| Oklahoma | 4.5% | $635,000 | $58.55M |
| Oregon | 9.9% | $583,000 | $53.15M |
| PennsylvaniaTaxed since 2016. Often listed as tax-free by mistake. | 3.07% | $649,000 | $59.98M |
| Rhode Island | 5.99% | $623,000 | $57.06M |
| South CarolinaNew two-rate system for 2026; top rate 5.21%. | 5.21% | $629,000 | $57.84M |
| South DakotaNo state income tax. | None | $680,000 | $63.05M |
| TennesseeNo state income tax. | None | $680,000 | $63.05M |
| TexasNo state income tax. | None | $680,000 | $63.05M |
| UtahNo state lottery. | — | — | — |
| Vermont | 8.75% | $598,000 | $54.31M |
| Virginia | 5.75% | $623,000 | $57.30M |
| WashingtonNo income tax on lottery winnings. | None | $680,000 | $63.05M |
| West VirginiaRates cut 5% for 2026; top rate 4.58%. | 4.58% | $635,000 | $58.47M |
| Wisconsin | 7.65% | $612,000 | $55.41M |
| WyomingNo state income tax. | None | $680,000 | $63.05M |
Estimates for tax year 2026. Federal tax on the $1 million prize is about $320,000 and on the $100 million prize about $36.95 million in every state. State tax is figured on each state’s 2026 single-filer brackets, including rate cuts passed during 2026 in Arkansas, Georgia, South Carolina and West Virginia. State deductions and credits are left out, which can shift a figure by a few hundred dollars. $1 million amounts are rounded to the nearest $1,000.
On a big jackpot, New York, D.C. and New Jersey take the most. A $100 million cash prize leaves about $52.15 million in New York, $52.3 million in D.C. and $52.3 million in New Jersey, compared with $63.05 million in the eight states with no tax on the prize. On a $1 million prize the order changes: Oregon ($583,000), Minnesota ($587,000) and D.C. ($588,000) leave the least, because their top rates start at much lower incomes than New York’s or New Jersey’s.
Why Winners Still Owe Money in April
The amount taken out when you claim a prize isn’t the full tax. The gap can be huge.The lottery withholds $240,000 (24%). The actual federal tax is about $320,000, because most of the prize is taxed at 32%, 35% and 37%.
$24 million is withheld, but the federal bill is about $36.95 million. Winners who spend based on the check they receive can end up short when the tax is due.
New Jersey, for example, withholds 8% on lottery prizes over $500,000, but its top rate is 10.75%. Other states’ withholding rates don’t always match what you’ll owe either.
The simple fix is to set aside the difference as soon as the money arrives, and to talk to a tax professional before spending any of it. Depending on your situation, you may also need to make an estimated tax payment to avoid an underpayment penalty.
Three Things Other Lists Get Wrong
Many articles about lottery taxes repeat old information. These three are the ones we see most.Delaware used to exempt its lottery prizes, and it still shows up on “no tax” lists. That exemption was repealed for tax years starting in 2010. Winners now pay Delaware income tax of up to 6.6%.
Pennsylvania Lottery cash prizes paid after January 1, 2016 are subject to the state’s 3.07% income tax. Before that they were exempt, which is why some sources still say otherwise.
California doesn’t tax California Lottery prizes, including Powerball and Mega Millions tickets bought there. A California resident who wins with a ticket bought in another state owes California income tax on it.
How the Payout Choice Changes Your Taxes
Lump sum: you get the cash value at once, and it’s all taxed in one year. On any large prize, nearly all of it lands in the top federal bracket, so the tables above apply.
Annuity: Powerball and Mega Millions pay the full advertised amount as 30 payments over 29 years, with each payment 5% larger than the last. Each payment is taxed in the year you receive it, at that year’s rates. For a jackpot in the hundreds of millions, each yearly payment is still large enough that most of it is taxed at the top rate, so spreading it out saves less tax than people expect.
The part nobody can predict: an annuity locks you into 29 years of future tax rates. Federal and state rates can go up or down over that time, and moving to a state with no income tax later can lower the tax on the remaining payments. The lump sum settles the tax question in one year.
Winning With a Ticket From Another State
The state where you buy the ticket generally taxes the prize, even if you live somewhere else. Your home state taxes you on all your income too, but it usually gives you a credit for tax paid to the other state. In most cases that means you pay the higher of the two states’ rates, not both.
So a Texas resident who wins with a ticket bought in Illinois pays Illinois’s 4.95%. An Illinois resident who buys a winning ticket in Indiana pays Indiana’s 2.95%, then roughly the difference to Illinois. Buying across a state line rarely lowers your tax if your home state has a higher rate.
Local taxes on top
A few places tax income at the city or county level, and lottery prizes count as income:
| Place | Extra local tax |
|---|---|
| New York City residents | Up to 3.876% |
| Yonkers residents | 16.75% of your New York State tax (about 1.8% of a large prize) |
| Maryland residents | County tax of 2.25% (Worcester) to 3.30% (Dorchester and Kent) in 2026 |
| Indiana residents | County income tax, which varies by county |
Some other states also allow city or county income taxes. If you live in one, check your local rules.
Losing Tickets, Non-Citizens and Other Countries
Losing tickets are gambling losses. You can deduct them against gambling winnings only if you itemize deductions. Starting with tax year 2026, the deduction is limited to 90% of your losses, and it can’t be more than your winnings. On a big prize the ticket costs barely register, but they do count if you kept records.
Winners who aren’t US citizens or residents generally have 30% federal tax withheld, unless a tax treaty says otherwise. The state tax where the ticket was bought still applies.
Outside the US, most big lottery countries don’t tax the prize at all. Lottery winnings are tax-free in the UK, Canada, Australia and New Zealand, for example. Interest or investment income you earn on the money afterward is taxed normally.
Frequently Asked Questions
How much tax do you pay on a $1 million lottery prize?
About $320,000 in federal tax for a single filer in 2026, if the prize is your only income. State tax adds nothing in the eight no-tax states and up to about $97,000 in Oregon. You keep roughly $583,000 to $680,000 depending on the state. A married couple filing jointly would owe about $40,000 less in federal tax.
Which states don’t tax lottery winnings?
Eight lottery states don’t: Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no tax on the winnings, and California exempts California Lottery prizes. Alaska and Nevada also have no income tax, but they don’t have a state lottery.
Which state takes the most from a lottery jackpot?
New York, at 10.9% on income over $25 million. New York City residents pay up to another 3.876%, which makes a New York City winner the most heavily taxed in the country. D.C. and New Jersey are next at 10.75%.
Is the 24% withheld the final federal tax?
No. It’s only a prepayment. Once your taxable income passes $201,775 (single, 2026), your top rate is higher than 24%, and on any prize over about $657,000 part of it is taxed at 37%. The difference is due when you file.
Do I pay less tax if I take the annuity?
Sometimes a little, but less than most people think. On a large jackpot, each yearly payment is big enough that most of it is still taxed at the top rate. The bigger difference is timing: an annuity is taxed at whatever the rates are in each of the next 29 years.
Which states don’t have a lottery?
Alabama, Alaska, Hawaii, Nevada and Utah. Residents of those states can still play by buying tickets in another state, and that state’s tax applies to the prize.
Can I avoid state tax by buying a ticket in a no-tax state?
Usually not. Your home state still taxes you on the prize if it has an income tax. Buying in a no-tax state only avoids a second state being involved. And California residents owe California tax on prizes from any lottery except California’s own.
More Gambling Statistics
Cite This Page
NoDeposit.Guru. “Lottery Winnings After Taxes: Take-Home Pay by State.” September 2026. https://www.nodeposit.guru/lottery-winnings-after-taxes-by-state/
Sources & Methodology
- Internal Revenue Service — 2026 inflation adjustments (Rev. Proc. 2025-32): federal brackets and the $16,100 single standard deduction.
- Internal Revenue Service — gambling winnings withholding rules: 24% on lottery prizes over $5,000; 30% for nonresident aliens.
- Tax Foundation — State Individual Income Tax Rates and Brackets, 2026 (single-filer brackets for every state).
- 2026 state laws cutting rates after January 1: Arkansas (HB 1001 / SB 1, top rate 3.7%), Georgia (HB 463, 4.99%), South Carolina (H. 4216, 1.99% and 5.21%), West Virginia (5% cut, top rate 4.58%, WV State Tax Department schedule), Utah (S.B. 60).
- Pennsylvania Department of Revenue — lottery winnings (Act 84 of 2016).
- Delaware Code, Title 29 § 4817 (repealed effective January 1, 2010) and 13 DE Reg. 689 (November 2009).
- California Government Code § 8880.68 (California Lottery prizes exempt from state and local tax).
- New Jersey Division of Taxation — Technical Bulletin TB-20(R): lottery prizes over $10,000 taxable; 5% and 8% withholding.
- Comptroller of Maryland — 2026 state and local withholding information (county rates 2.25% to 3.30%).
- One Big Beautiful Bill Act (Public Law 119-21) — gambling loss deduction limited to 90% from tax year 2026.
Method: single filer, the prize is the only income for the year, lump-sum payout, 2026 federal brackets with the standard deduction, and each state’s 2026 single-filer brackets with no state deductions or credits. New York and Connecticut figures include their rules that phase out the lower brackets for high incomes. Local taxes are not included in the totals. These are estimates for comparison, not tax advice.