Lottery Tax Calculator
Find out how much you actually keep from lottery winnings after federal and state taxes. Enter the jackpot amount, choose lump sum or annuity, and see the full tax breakdown. Most winners are surprised by how much goes to taxes.
Lottery winnings are taxed as ordinary income at both the federal and state level. For large jackpots, the top federal tax rate is 37%, plus state taxes ranging from 0% to 13.3% depending on where you live. This means you may keep only 45-55% of the advertised jackpot after choosing the lump sum option.
The lump sum versus annuity decision is critical. The lump sum cash option is typically about 60% of the advertised jackpot, reflecting the present value of future annuity payments. So a $1 million advertised jackpot has a lump sum of about $600,000, which after 37% federal tax ($222,000) and 5% state tax ($30,000) leaves $348,000 -- just 34.8% of the headline number.
States with no lottery income tax include Florida, Texas, California (state doesn't tax lottery), Washington, South Dakota, Wyoming, New Hampshire, and Tennessee. States with the highest lottery taxes include New York (up to 10.9% state + 3.876% NYC), Maryland (up to 8.75%), and Oregon (up to 9.9%). Your state of residence at the time of the win determines your state tax obligation.