---
title: "Lottery Tax Calculator 2026: Federal and State Tax on Winnings | TaxWren"
description: "See how much of a lottery prize you keep after federal and state tax in 2026. The 24% withheld at payout is often not enough: a $1,000,000 prize owes $337,180 federal tax for a single filer, $97,181 more at tax time."
url: https://taxwren.com/lottery-tax-calculator
---

2026 tax year · updated Oct 15, 2026

# Lottery tax calculator

Lottery winnings are taxed as ordinary income. The lottery withholds 24% for federal tax on prizes over $5,000, but large prizes reach the 37% bracket: a single filer who wins $1,000,000 in 2026 owes about $337,180 of federal tax, $97,181 more than was withheld. Enter your prize and state to see what you keep.

## Prize after federal and state tax

$662,820

Total tax $337,180 (33.7% of the prize)

- Federal tax withheld at payout (24%): $240,000
- Federal tax on the prize: $337,180
- Still owed at tax time: $97,181
- State income tax on the prize: $0
- Top federal bracket reached: 37%

Tax on the year's return, from the same engine as the [income tax calculator](/income-tax-calculator). State withholding and city taxes are not included.

## Lottery taxes by prize size

Single filer in Texas (no state income tax) with $60,000 of other income, 2026:

| Prize | Withheld at payout | Federal tax | Owed at filing | You keep |
| --- | --- | --- | --- | --- |
| $1,000 | $0 | $120 | $120 | $880 |
| $10,000 | $2,400 | $1,550 | $850 refund | $8,450 |
| $100,000 | $24,000 | $22,114 | $1,886 refund | $77,886 |
| $1,000,000 | $240,000 | $337,180 | $97,181 | $662,820 |
| $10,000,000 | $2,400,000 | $3,667,180 | $1,267,181 | $6,332,820 |
| $100,000,000 | $24,000,000 | $36,967,180 | $12,967,181 | $63,032,820 |

Small prizes have no withholding, so the whole tax is due when you file. For prizes in the millions the 24% withheld covers well under the 37% top rate; set money aside, or make an [estimated tax payment](/estimated-tax-calculator) to avoid an underpayment penalty.

## How lottery winnings are taxed

-   **Ordinary income:** the prize is added to your other income for the year and taxed at your [federal brackets](/glossary#tax-bracket). It is reported on Schedule 1 of Form 1040, not as a capital gain.
-   **Withholding:** 24% of the winnings minus the ticket cost when that exceeds $5,000. It is a prepayment; the real tax is figured on your return.
-   **Form W-2G:** the lottery reports prizes of at least $2,000 that are at least 300 times the wager (2026 threshold). Smaller prizes are still taxable.
-   **Non-cash prizes** such as cars or trips are taxed at their fair market value.
-   **Losses:** Gambling losses are deductible only if you itemize, and only up to the gambling winnings you report.

## Lump sum or annuity

If, within 60 days after becoming entitled to the prize, the winner chooses an annuity payable over at least 10 years, winnings are taxed when actually paid, and a Form W-2G is filed each year for the payments made that year. Taking the annuity spreads the income over many years, so each payment is taxed at the rates of the year it is paid. Use the calculator with one year's payment to see the tax on it, and the lump-sum cash value to compare.

## State tax on a $1,000,000 lottery prize

State income tax on a $1,000,000 prize for a single filer with $60,000 of other income, ticket bought in the home state, 2026. Rates and brackets as in our [income tax calculator](/income-tax-calculator); city taxes and state withholding are not included.

| State | State tax | Federal + state | You keep |
| --- | --- | --- | --- |
| [Alaska](/income-tax-calculator/alaska) | $0 | $337,180 | $662,820 |
| [California](/income-tax-calculator/california) (own lottery exempt) | $0 | $337,180 | $662,820 |
| [Florida](/income-tax-calculator/florida) | $0 | $337,180 | $662,820 |
| [Nevada](/income-tax-calculator/nevada) | $0 | $337,180 | $662,820 |
| [New Hampshire](/income-tax-calculator/new-hampshire) | $0 | $337,180 | $662,820 |
| [South Dakota](/income-tax-calculator/south-dakota) | $0 | $337,180 | $662,820 |
| [Tennessee](/income-tax-calculator/tennessee) | $0 | $337,180 | $662,820 |
| [Texas](/income-tax-calculator/texas) | $0 | $337,180 | $662,820 |
| [Washington](/income-tax-calculator/washington) | $0 | $337,180 | $662,820 |
| [Wyoming](/income-tax-calculator/wyoming) | $0 | $337,180 | $662,820 |
| [North Dakota](/income-tax-calculator/north-dakota) | $23,806 | $360,986 | $639,014 |
| [Arizona](/income-tax-calculator/arizona) | $25,000 | $362,180 | $637,820 |
| [Ohio](/income-tax-calculator/ohio) | $27,559 | $364,739 | $635,261 |
| [Indiana](/income-tax-calculator/indiana) | $29,500 | $366,680 | $633,320 |
| [Louisiana](/income-tax-calculator/louisiana) | $30,000 | $367,180 | $632,820 |
| [Pennsylvania](/income-tax-calculator/pennsylvania) | $30,700 | $367,880 | $632,120 |
| [Alabama](/income-tax-calculator/alabama) | $33,141 | $370,321 | $629,679 |
| [Kentucky](/income-tax-calculator/kentucky) | $35,000 | $372,180 | $627,820 |
| [Arkansas](/income-tax-calculator/arkansas) | $37,287 | $374,468 | $625,532 |
| [Iowa](/income-tax-calculator/iowa) | $38,000 | $375,180 | $624,820 |
| [North Carolina](/income-tax-calculator/north-carolina) | $39,900 | $377,080 | $622,920 |
| [Mississippi](/income-tax-calculator/mississippi) | $40,000 | $377,180 | $622,820 |
| [Michigan](/income-tax-calculator/michigan) | $42,500 | $379,680 | $620,320 |
| [Colorado](/income-tax-calculator/colorado) | $44,000 | $381,180 | $618,820 |
| [Utah](/income-tax-calculator/utah) | $44,923 | $382,103 | $617,897 |
| [Oklahoma](/income-tax-calculator/oklahoma) | $45,000 | $382,180 | $617,820 |
| [Nebraska](/income-tax-calculator/nebraska) | $45,500 | $382,680 | $617,320 |
| [West Virginia](/income-tax-calculator/west-virginia) | $45,793 | $382,973 | $617,027 |
| [Missouri](/income-tax-calculator/missouri) | $47,035 | $384,216 | $615,784 |
| [Illinois](/income-tax-calculator/illinois) | $49,645 | $386,825 | $613,175 |
| [Georgia](/income-tax-calculator/georgia) | $49,900 | $387,080 | $612,920 |
| [Massachusetts](/income-tax-calculator/massachusetts) | $50,000 | $387,180 | $612,820 |
| [South Carolina](/income-tax-calculator/south-carolina) | $52,597 | $389,778 | $610,222 |
| [Idaho](/income-tax-calculator/idaho) | $53,000 | $390,180 | $609,820 |
| [Kansas](/income-tax-calculator/kansas) | $55,800 | $392,980 | $607,020 |
| [Montana](/income-tax-calculator/montana) | $56,466 | $393,646 | $606,354 |
| [New Mexico](/income-tax-calculator/new-mexico) | $57,294 | $394,474 | $605,526 |
| [Virginia](/income-tax-calculator/virginia) | $57,500 | $394,680 | $605,320 |
| [Rhode Island](/income-tax-calculator/rhode-island) | $57,743 | $394,923 | $605,077 |
| [Maryland](/income-tax-calculator/maryland) | $59,581 | $396,761 | $603,239 |
| [Delaware](/income-tax-calculator/delaware) | $65,966 | $403,146 | $596,854 |
| [New York](/income-tax-calculator/new-york) | $66,804 | $403,985 | $596,015 |
| [Wisconsin](/income-tax-calculator/wisconsin) | $70,523 | $407,703 | $592,297 |
| [Connecticut](/income-tax-calculator/connecticut) | $71,727 | $408,907 | $591,093 |
| [Maine](/income-tax-calculator/maine) | $74,098 | $411,278 | $588,722 |
| [New Jersey](/income-tax-calculator/new-jersey) | $79,149 | $416,329 | $583,671 |
| [Vermont](/income-tax-calculator/vermont) | $84,367 | $421,547 | $578,453 |
| [District of Columbia](/income-tax-calculator/district-of-columbia) | $93,791 | $430,971 | $569,029 |
| [Minnesota](/income-tax-calculator/minnesota) | $94,651 | $431,832 | $568,168 |
| [Oregon](/income-tax-calculator/oregon) | $98,914 | $436,095 | $563,905 |
| [Hawaii](/income-tax-calculator/hawaii) | $103,054 | $440,234 | $559,766 |

Alaska, California, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming don't tax the prize; Hawaii takes the most, $103,054. California does not tax California Lottery winnings (including SuperLotto, Powerball and Mega Millions bought in California); winnings from other states' lotteries are taxable. Pennsylvania taxes cash prizes from the Pennsylvania Lottery (since 2016) and other lotteries; noncash Pennsylvania Lottery prizes are exempt. A state can also tax prizes on tickets bought there by nonresidents (Pennsylvania does for Pennsylvania Lottery, Powerball and Mega Millions tickets sold in the state), so check both states' rules if you won away from home.

Sources: [IRS Instructions for Forms W-2G and 5754 (Rev. January 2026)](https://www.irs.gov/pub/irs-pdf/iw2g.pdf); [IRS Topic 419, Gambling income and losses](https://www.irs.gov/taxtopics/tc419); [California Franchise Tax Board, Gambling](https://www.ftb.ca.gov/file/personal/income-types/gambling.html); [Pennsylvania Department of Revenue, Lottery winnings](https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/personal-income-tax/lottery-winnings); federal brackets from [IRS Rev. Proc. 2025-32](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf). See our [methodology](/methodology).

## Frequently asked questions

### How much tax do you pay on lottery winnings?

Lottery winnings are taxed as ordinary income, at your federal bracket rates plus any state income tax. For a single filer with $60,000 of other income in 2026, a $1,000,000 prize adds $337,180 of federal tax (33.7%), most of it at the 37% top rate.

### How much federal tax is withheld from lottery winnings?

24% of the winnings minus the ticket cost, when that is more than $5,000. For large prizes this is less than the tax owed, because the top federal rate is 37%: a $1,000,000 winner still owes about $97,181 when filing.

### Which states do not tax lottery winnings?

States with no income tax on wages don't tax lottery prizes either: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. California has an income tax but doesn't tax prizes from the California Lottery (including Powerball and Mega Millions tickets bought there); it does tax other states' lotteries.

### Is it better to take the lump sum or the annuity?

Tax-wise, an annuity spreads the prize over many years, so each year's payment is taxed when paid and may stay in lower brackets than one lump sum. The lump sum is smaller but paid at once. If you choose an annuity of at least 10 years within 60 days of winning, you are taxed only as payments arrive. Enter one year's payment in the calculator to see the tax on it.

### Do I have to report small lottery winnings?

Yes. All gambling winnings are taxable and go on your return, even without a Form W-2G. The lottery sends a W-2G when a prize is at least $2,000 and at least 300 times the ticket price (2026 threshold).

### Can I deduct lottery tickets I lost on?

Only if you itemize deductions, and only up to the gambling winnings you report. The cost of losing tickets can't reduce your tax if you take the standard deduction.

## Related calculators

-   [Estimated tax calculatorQuarterly payments that avoid a penalty](/estimated-tax-calculator)
-   [Income tax calculatorFederal and state income tax for 2026](/income-tax-calculator)
-   [Tax bracket calculatorWhich bracket you are in, and how close the next is](/tax-bracket-calculator)