How much is the Powerball tax?
Enter your prize, state and other income to see the federal and state tax on a Powerball, Mega Millions or state lottery prize, what is withheld when you claim it, and what you keep.
- You keep
- $665,322.75
A $1,000,000.00 lottery prize in Texas costs about $334,677.25 in federal tax and $0.00 in state tax; you keep $665,322.75.
- Federal tax on the prize
- $334,677.25
- Federal tax withheld
- $240,000.00
- State tax on the prize
- $0.00
- State tax withheld
- $0.00
- Still to pay when you file
- $94,677.25
- Paid to you at claim
- $760,000.00
- Share of the prize in tax
- 33.47%
- About this state
- No state income tax.
You keep: $665,322.75. A $1,000,000.00 lottery prize in Texas costs about $334,677.25 in federal tax and $0.00 in state tax; you keep $665,322.75.
The results are maths only. They are not betting advice or a promise of a return. Bet only what you can afford to lose. For help with gambling, call 1-800-GAMBLER. Terms of use
How to calculate
Estimates the 2026 federal and state tax on a lottery prize (Powerball, Mega Millions or a state game), what the lottery withholds, what is left to pay when you file, and what you keep.
Example with the default inputs (Prize $1,000,000.00, State Texas, Filing status Single, Other taxable income $50,000.00): A $1,000,000.00 lottery prize in Texas costs about $334,677.25 in federal tax and $0.00 in state tax; you keep $665,322.75.
Method: Federal tax = 2026 tax on (other income + prize) − tax on other income; withheld = 24% of a prize over $5,000; state tax = prize × state top rate (or yours); state withholding from each lottery’s rules.
- Federal tax for tax year 2026 with the standard deduction and the regular brackets; the prize is ordinary income, with no itemized deductions or gambling losses.
- State tax uses the state’s top income tax rate, which most of a large prize pays; a small prize can pay less. California does not tax California Lottery prizes; states without an income tax take nothing.
- Local taxes (New York City, Yonkers, Maryland counties, some Ohio cities) are not included; enter your combined rate to include them.
- State withholding is shown where the state lottery or revenue department confirms the rate (read 2026-09-29).
- Buying a ticket in another state can mean tax in both states, with a credit at home; this page uses one state.
- Estimates only, not tax advice. If gambling is causing problems for you or someone you know, call or text 1-800-MY-RESET.
Worked examples
Each example is checked against the calculator on every build.
- Prize $1,000,000.00, State Texas, Filing status Single, Other taxable income $50,000.00 gives Federal tax withheld $240,000.00, State tax on the prize $0.00, State tax withheld $0.00, Federal tax on the prize $334,677.25, You keep $665,322.75, Still to pay when you file $94,677.25.Source: IRS Instructions for Forms W-2G (24% over $5,000); 2026 single brackets (Rev. Proc. 2025-32)
- Prize $10,000.00, State Illinois, Filing status Married filing jointly, Other taxable income $80,000.00 gives Federal tax withheld $2,400.00, State tax withheld $495.00, State tax on the prize $495.00, Federal tax on the prize $1,200.00.
- Prize $600,000.00, State New Jersey, Filing status Single, Other taxable income $0.00 gives State tax withheld $48,000.00, State tax on the prize $64,500.00, Federal tax withheld $144,000.00, Federal tax on the prize $173,134.25.
- Prize $5,000.00, State California, Filing status Single, Other taxable income $40,000.00 gives Federal tax withheld $0.00, State tax withheld $0.00, State tax on the prize $0.00, Federal tax on the prize $600.00.Source: IRS W-2G instructions (no withholding at $5,000 or less)
How it works
Federal tax on the prize = 2026 federal tax on (other income + prize) − 2026 federal tax on other income alone. Each tax: income − the standard deduction ($16,100 single or separate, $32,200 joint, $24,150 head of household), not below 0, at the 2026 brackets (10% to 37%). Below $100,000 of taxable income, the Form 1040 Tax Table method: the tax at the middle of the $50 row (smaller rows below $3,000), rounded to the whole dollar; from $100,000, the exact rate schedule.
Federal withholding = 24% of the prize when it is more than $5,000; otherwise 0.
State tax = prize × the state’s top 2026 income tax rate, or the rate you enter. It is 0 in states with no income tax, in New Hampshire and South Dakota, and for California Lottery prizes.
State withholding = prize × the state lottery’s withholding rate when the prize reaches the state’s threshold (for example more than $5,000, $600 or more, or $1,000 or more in Illinois). New Jersey withholds 5% from a prize over $10,000 and 8% from a prize over $500,000. Where no official source confirmed the rate (Indiana, New York, Oklahoma), withholding is not shown.
Outputs. You keep = prize − federal tax − state tax. Paid to you at claim = prize − both withholdings. Still to pay when you file = federal tax + state tax − both withholdings, when that is 0 or more; otherwise the difference is shown as a refund when you file. Share of the prize in tax = (federal + state tax) ÷ prize.
Assumptions
- The prize is ordinary income in one tax year; no itemized deductions or gambling losses.
- The ticket price is ignored (the IRS withholds from the prize minus the wager).
- Local taxes are not included unless you enter a combined rate.
- One state: a prize from a ticket bought in another state can be taxed there too, with a credit at home.
Worked examples by hand
$1,000,000 in Texas, single, $50,000 other income. Without the prize: taxable $33,900, row middle $33,925: $1,240 + 12% × $21,525 = $3,823. With it: taxable $1,033,900: $1,240 + $4,560 + $12,166 + $23,058 + $17,424 + $134,531.25 + 37% × $393,300 = $338,500.25. Federal tax on the prize = $334,677.25. Withheld 24% = $240,000, so $94,677.25 is still due. Texas takes nothing: you keep $665,322.75.
$10,000 in Illinois, joint, $80,000 other income. Without: taxable $47,800, middle $47,825: $2,480 + 12% × $23,025 = $5,243. With: taxable $57,800, middle $57,825: $6,443. Federal tax $1,200. Federal withholding 24% = $2,400. Illinois withholds and taxes 4.95% = $495.
$600,000 in New Jersey, single, no other income. New Jersey withholds 8% (over $500,000) = $48,000; the tax at the 10.75% top rate is $64,500. Federal: taxable $583,900; tax = $173,134.25; withheld $144,000.
$5,000 in California, single, $40,000 other income. Not over $5,000, so nothing is withheld. California does not tax it. Federal tax: taxable rises from $23,900 ($2,623) to $28,900 (middle $28,925: $3,223): $600.
Other questions people ask
How much tax is taken out of lottery winnings?
For a prize over $5,000, the lottery withholds 24% for federal income tax (IRS Instructions for Form W-2G), and most states withhold their own tax too. On a large prize the federal tax actually due is higher, because most of it falls in the 37% bracket; you pay the difference when you file.
Which states do not tax lottery winnings?
States with no income tax take nothing: Florida, Tennessee, Texas, Washington and Wyoming, plus South Dakota and New Hampshire, which do not tax lottery prizes. California does not tax California Lottery prizes. Delaware withholds nothing but does tax prizes.
What is the Powerball tax in my state?
Pick your state to see its lottery withholding and the tax rate used. Examples of withholding on large prizes, read on 2026-09-29: Maryland 9.5% for residents, DC 8.5%, New Jersey 8% over $500,000, Oregon 8%, Arizona 2.5%, North Dakota 2.5%.
Why is the withholding less than the tax I owe?
Federal withholding is a flat 24%, but the top rate is 37%. State withholding can also be below the state’s top rate (Colorado withholds 4% against a 4.4% rate). The page shows what is still due when you file.
Is gambling a way to make money?
No. Lotteries pay out less than they take in, and the chance of winning a jackpot is tiny. If gambling is causing problems for you or someone you know, call or text the National Problem Gambling Helpline at 1-800-MY-RESET.