{
  "id": "lottery-tax",
  "version": "ec812154f07d",
  "status": "published",
  "name": "Lottery Tax Calculator",
  "question": "How much is the Powerball tax?",
  "summary": "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.",
  "category": "game",
  "subcategory": "betting",
  "url": "https://www.acalculator.org/game/lottery-tax-calculator",
  "markdown": "https://www.acalculator.org/game/lottery-tax-calculator.md",
  "kind": "function",
  "method": "Federal tax = 2026 tax on (other income + prize) − tax on other income; withheld = 24% of a prize over $5,000; state tax = prize × state top rate (or yours); state withholding from each lottery’s rules.",
  "assumptions": [
    "Federal tax for tax year 2026 with the standard deduction and the regular brackets; the prize is ordinary income, with no itemized deductions or gambling losses.",
    "State tax uses the state’s top income tax rate, which most of a large prize pays; a small prize can pay less. California does not tax California Lottery prizes; states without an income tax take nothing.",
    "Local taxes (New York City, Yonkers, Maryland counties, some Ohio cities) are not included; enter your combined rate to include them.",
    "State withholding is shown where the state lottery or revenue department confirms the rate (read 2026-09-29).",
    "Buying a ticket in another state can mean tax in both states, with a credit at home; this page uses one state.",
    "Estimates only, not tax advice. If gambling is causing problems for you or someone you know, call or text 1-800-MY-RESET."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "prize": {
        "title": "Prize",
        "description": "The prize you receive this year, before tax (for a jackpot, the cash option or one annuity payment).",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000000000
      },
      "state": {
        "title": "State",
        "description": "The state where you live and bought the ticket.",
        "type": "string",
        "enum": [
          "AL",
          "AK",
          "AZ",
          "AR",
          "CA",
          "CO",
          "CT",
          "DE",
          "DC",
          "FL",
          "GA",
          "HI",
          "ID",
          "IL",
          "IN",
          "IA",
          "KS",
          "KY",
          "LA",
          "ME",
          "MD",
          "MA",
          "MI",
          "MN",
          "MS",
          "MO",
          "MT",
          "NE",
          "NV",
          "NH",
          "NJ",
          "NM",
          "NY",
          "NC",
          "ND",
          "OH",
          "OK",
          "OR",
          "PA",
          "RI",
          "SC",
          "SD",
          "TN",
          "TX",
          "UT",
          "VT",
          "VA",
          "WA",
          "WV",
          "WI",
          "WY"
        ]
      },
      "status": {
        "title": "Filing status",
        "description": "Your federal filing status.",
        "type": "string",
        "enum": [
          "single",
          "mfj",
          "hoh",
          "mfs"
        ]
      },
      "income": {
        "title": "Other taxable income",
        "description": "Your other taxable income this year before deductions: wages, pensions, interest.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "rate": {
        "title": "Your state tax rate",
        "description": "A state and local tax rate on the prize to use instead of the state’s top rate (for example with a city tax).",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 20
      }
    }
  },
  "outputs": {
    "net": {
      "label": "You keep",
      "description": "The prize minus the estimated federal and state tax on it.",
      "format": "money"
    },
    "federalTax": {
      "label": "Federal tax on the prize",
      "description": "Your 2026 federal tax with the prize minus your federal tax without it.",
      "format": "money"
    },
    "federalWithheld": {
      "label": "Federal tax withheld",
      "description": "24% of a prize over $5,000, withheld when you claim it.",
      "format": "money"
    },
    "stateTax": {
      "label": "State tax on the prize",
      "description": "The prize times the state’s top income tax rate, or your rate.",
      "format": "money"
    },
    "stateWithheld": {
      "label": "State tax withheld",
      "description": "What the state lottery withholds for state income tax.",
      "format": "money"
    },
    "dueAtFiling": {
      "label": "Still to pay when you file",
      "description": "Federal and state tax on the prize minus what was withheld, when the tax is more.",
      "format": "money"
    },
    "refund": {
      "label": "Refund when you file",
      "description": "What was withheld minus the federal and state tax on the prize, when more was withheld.",
      "format": "money"
    },
    "paidOut": {
      "label": "Paid to you at claim",
      "description": "The prize minus federal and state withholding.",
      "format": "money"
    },
    "effectiveRate": {
      "label": "Share of the prize in tax",
      "description": "Federal and state tax on the prize divided by the prize.",
      "format": "percent"
    },
    "stateNote": {
      "label": "About this state",
      "description": "A note on the state’s lottery tax rules.",
      "format": "text"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "prize": 1000000,
      "state": "TX",
      "status": "single",
      "income": 50000
    },
    "outputs": {
      "net": 665322.75,
      "federalTax": 334677.25,
      "federalWithheld": 240000,
      "stateTax": 0,
      "stateWithheld": 0,
      "dueAtFiling": 94677.25,
      "paidOut": 760000,
      "effectiveRate": 33.467725,
      "stateNote": "No state income tax."
    },
    "text": "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."
  },
  "examples": [
    {
      "given": {
        "prize": 1000000,
        "state": "TX",
        "status": "single",
        "income": 50000
      },
      "expect": {
        "federalWithheld": 240000,
        "stateTax": 0,
        "stateWithheld": 0,
        "federalTax": 334677.25,
        "net": 665322.75,
        "dueAtFiling": 94677.25
      },
      "source": "IRS Instructions for Forms W-2G (24% over $5,000); 2026 single brackets (Rev. Proc. 2025-32); hand calculation in content.mdx"
    },
    {
      "given": {
        "prize": 10000,
        "state": "IL",
        "status": "mfj",
        "income": 80000
      },
      "expect": {
        "federalWithheld": 2400,
        "stateWithheld": 495,
        "stateTax": 495,
        "federalTax": 1200
      },
      "source": "Illinois Department of Revenue Pub-130 and 35 ILCS 5/710 (4.95% from $1,000); 2026 joint brackets; hand calculation in content.mdx"
    },
    {
      "given": {
        "prize": 600000,
        "state": "NJ",
        "status": "single",
        "income": 0
      },
      "expect": {
        "stateWithheld": 48000,
        "stateTax": 64500,
        "federalWithheld": 144000,
        "federalTax": 173134.25
      },
      "source": "New Jersey Lottery, How to claim: 8% withheld from a prize over $500,000; top 2026 NJ rate 10.75%; hand calculation in content.mdx"
    },
    {
      "given": {
        "prize": 5000,
        "state": "CA",
        "status": "single",
        "income": 40000
      },
      "expect": {
        "federalWithheld": 0,
        "stateWithheld": 0,
        "stateTax": 0,
        "federalTax": 600
      },
      "source": "IRS W-2G instructions (no withholding at $5,000 or less); California FTB: California Lottery winnings are not taxed by California"
    }
  ],
  "sources": [
    "Internal Revenue Service, Instructions for Forms W-2G and 5754 (Rev. January 2026): 24% withholding from lottery proceeds over $5,000: https://www.irs.gov/instructions/iw2g",
    "Internal Revenue Service, Rev. Proc. 2025-32 (2026 brackets and standard deduction): https://www.irs.gov/irb/2025-45_IRB",
    "Internal Revenue Service, Topic no. 419, Gambling income and losses: https://www.irs.gov/taxtopics/tc419",
    "State lottery and revenue departments, withholding rules read 2026-09-29, for example: New Jersey Lottery, https://www.njlottery.com/en-us/playertools/claimprize.html; Comptroller of Maryland, https://www.marylandcomptroller.gov/legal-library/ta-01-jul-2025.html; Illinois Department of Revenue Pub-130, https://tax.illinois.gov/research/publications/pubs/who-is-required-to-withhold-illinois-income-tax/withholding-illinois-income-tax-for-lottery-or-gambling-winnings.html",
    "California Franchise Tax Board, Gambling (California Lottery winnings are not taxed): https://www.ftb.ca.gov/file/personal/income-types/gambling.html",
    "National Council on Problem Gambling, help and treatment (1-800-MY-RESET): https://www.ncpgambling.org/help-treatment/"
  ],
  "related": [
    "lottery",
    "lottery-payout",
    "lottery-annuity"
  ],
  "changelog": []
}