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Lottery Tax & Payout Calculator 2026 – Take-Home on US Pick 3, Pick 4 & Any Lottery Prize, Federal + State Tax (NY, NJ, NC, VA, PA, OH, GA, SC, FL, KY…)
Enter a prize amount or pick a quick amount to see the tax estimate.
Tax on a $5,000 prize in every state
| State | Taxes lottery prizes? | State withheld at claim | Est. state tax | Take-home at claim | Source |
|---|---|---|---|---|---|
| Arizona AZ | Yes 2.5% | $0 | $125 | $5,000 | azleg.gov State lottery source |
| Arkansas AR | Yes 3.7% | $0 | $185 | $5,000 | playershub.myarkansaslottery.com Other source |
| California CA | No (own lottery exempt) | $0 | $0 | $5,000 | ftb.ca.gov State lottery source |
| Colorado CO | Yes 4% | $0 | $200 | $5,000 | coloradolottery.com State lottery source |
| Connecticut CT | Yes 6.99% | $349.50 | $349.50 | $4,650.50 | ctlottery.org State lottery source |
| Delaware DE | Unconfirmed | check with the state | check with the state | check with the state | delottery.com Unconfirmed |
| District of Columbia DC | Yes 8.5% | $0 | $425 | $5,000 | lottery.dc.gov Other source |
| Florida FL | No income tax | $0 | $0 | $5,000 | floridarevenue.com State lottery source |
| Georgia GA | Yes 4.99% | $0 | $249.50 | $5,000 | galottery.com State lottery source |
| Idaho ID | Yes 5.3% | $0 | $265 | $5,000 | idaholottery.com State lottery source |
| Illinois IL | Yes 4.95% | $247.50 | $247.50 | $4,752.50 | tax.illinois.gov State lottery source |
| Indiana IN | Yes 2.95% | $147.50 | $147.50 | $4,852.50 | in.gov Other source |
| Iowa IA | Yes 3.8% | $190 | $190 | $4,810 | revenue.iowa.gov State lottery source |
| Kansas KS | Yes 5% | $0 | $250 | $5,000 | ksrevenue.gov State lottery source |
| Kentucky KY | Yes 3.5% | check with the state | $175 | check with the state | revenue.ky.gov Other source |
| Louisiana LA | Yes 3% | $150 | $150 | $4,850 | louisianalottery.com State lottery source |
| Maine ME | Yes 7.15% | $0 | $357.50 | $5,000 | legislature.maine.gov State lottery source |
| Maryland MD | Yes 9.5% | $0 | $475 | $5,000 | marylandcomptroller.gov State lottery source |
| Massachusetts MA | Yes 5% | $250 | $250 | $4,750 | mass.gov State lottery source |
| Michigan MI | Yes 4.25% | $0 | $212.50 | $5,000 | michiganlottery.com State lottery source |
| Minnesota MN | Yes 7.25% | $0 | $362.50 | $5,000 | mnlottery.com State lottery source |
| Mississippi MS | Yes 3% | $150 | $150 | $4,850 | mslottery.com State lottery source |
| Missouri MO | Yes 4% | $200 | $200 | $4,800 | molottery.com State lottery source |
| Montana MT | Yes 5.9% | $0 | $295 | $5,000 | montanalottery.com State lottery source |
| Nebraska NE | Yes 3.5% | $0 | $175 | $5,000 | revenue.nebraska.gov State lottery source |
| New Hampshire NH | No income tax | $0 | $0 | $5,000 | revenue.nh.gov State lottery source |
| New Jersey NJ | Over $10,000 5% | $0 | $0 | $5,000 | nj.gov State lottery source |
| New Mexico NM | Yes 6% | $0 | $300 | $5,000 | nmlottery.com State lottery source |
| New York NY | Yes 10.9% | $0 | $545 | $5,000 | tax.ny.gov State lottery source |
| North Carolina NC | Yes 3.99% | $199.50 | $199.50 | $4,800.50 | ncdor.gov State lottery source |
| North Dakota ND | Yes 2.5% | $0 | $125 | $5,000 | lottery.nd.gov State lottery source |
| Ohio OH | Yes 2.75% | $137.50 | $137.50 | $4,862.50 | codes.ohio.gov State lottery source |
| Oklahoma OK | Yes 4.5% | check with the state | $225 | check with the state | oklahoma.gov Other source |
| Oregon OR | Yes 8% | $400 | $400 | $4,600 | oregonlottery.org State lottery source |
| Pennsylvania PA | Yes 3.07% | $0 | $153.50 | $5,000 | pa.gov State lottery source |
| Puerto Rico PR | Unconfirmed | check with the state | check with the state | check with the state | – Unconfirmed |
| Rhode Island RI | Yes 5.99% | $0 | $299.50 | $5,000 | rilot.com State lottery source |
| South Carolina SC | Yes 7% | $350 | $350 | $4,650 | scstatehouse.gov State lottery source |
| South Dakota SD | No income tax | $0 | $0 | $5,000 | dor.sd.gov State lottery source |
| Tennessee TN | No income tax | $0 | $0 | $5,000 | tn.gov State lottery source |
| Texas TX | No income tax | $0 | $0 | $5,000 | comptroller.texas.gov State lottery source |
| Vermont VT | Yes 6% | $0 | $300 | $5,000 | vtlottery.com State lottery source |
| Virginia VA | Yes 4% | $0 | $200 | $5,000 | law.lis.virginia.gov State lottery source |
| Washington WA | No income tax | $0 | $0 | $5,000 | dor.wa.gov State lottery source |
| West Virginia WV | Yes 4.82% | $0 | $241 | $5,000 | wvlottery.com Other source |
| Wisconsin WI | Yes 7.65% | $382.50 | $382.50 | $4,617.50 | revenue.wi.gov State lottery source |
| Wyoming WY | No income tax | $0 | $0 | $5,000 | wyo.gov State lottery source |
Same-state case (bought and living in that state), federal withholding included in take-home. All values checked 2026-10-10. Estimate, not tax advice.
How to use the lottery tax calculator
- Enter the prize amount, tap a quick amount, or pick a prize from your ticket (the list shows the selected state's Pick 3 / Pick 4 prizes).
- Enter what the ticket cost (the wager). Federal rules subtract it before testing the $5,000 and $2,000 limits.
- Choose the state where you bought the ticket and the state where you live. If you live in New York City or Yonkers, choose the city too.
- Optionally choose your federal tax bracket to estimate what you finally owe, not just what is withheld.
How it works and sources
Federal (2026). Lottery prizes are taxable income. The lottery withholds 24% of the prize minus the wager when that amount is over $5,000. A Form W-2G is issued when the prize minus the wager is $2,000 or more and at least 300 times the wager (raised from $600 for 2026). Non-resident aliens usually have 30% withheld. From 2026 gambling losses are deductible only up to 90% of losses (and not more than your winnings), and only if you itemize. Sources: IRS W-2G instructions, Federal Register (loss limit), IRS Topic 419.
States. Each state's rate comes from its revenue department or lottery (linked in the table, with the date we checked it). Where a state withholds a fixed rate on lottery prizes we use that rate for the estimate; otherwise we note the income-tax rate used. States we could not confirm show "check with the state" and are left out of the maths. California does not tax California Lottery prizes; New Jersey does not tax NJ Lottery prizes of $10,000 or less; Florida, Texas, Tennessee, Washington, New Hampshire, South Dakota and Wyoming have no income tax on these prizes.
Two states. If you buy in one state and live in another, both may tax the prize. Your home state normally gives a credit for tax paid to the other state, so the estimate uses the higher of the two.
Limits. City and county taxes (other than NYC and Yonkers), the extra 4% Massachusetts surtax and the 8% NJ rate over $500,000 are simplified or not modelled. Withholding is only a prepayment – your final bill is worked out on your tax return.
Estimate, not tax advice. Verify with your state lottery before claiming.
Estimate, not tax advice. Example: on a $5,000 Pick 4 win from a $1 straight play, no federal tax is withheld because winnings minus the wager are $4,999, but the lottery issues a Form W-2G and the prize is taxable income.
Claim in time once you know what you keep. The Pick 3 & Pick 4 ticket expiration checker shows the last day to cash a winning ticket in each state.
What Does the Lottery Tax Calculator Show?
The lottery tax calculator shows the federal and state tax withheld from a US lottery prize and the cash you take home at claim, under the 2026 IRS rules and the rules of the state that sold the ticket.
The Lottery Tax & Payout Calculator is a lottery calculator after taxes for any prize amount: a $50 pair, a $500 Pick 3 win, a $5,000 Pick 4 win, a $50,000 Pick 5 win or a prize of $1 million or more. Quick-amount buttons fill the typical $1 straight prizes. A ticket list fills the Pick 3 and Pick 4 prizes of the chosen state, from the straight prize down to the pair prize.
The calculator returns seven figures for the prize you enter: - Form W-2G: whether the lottery issues one, under the 2026 threshold of $2,000. - Federal tax withheld: 24% of the prize minus the wager when that amount is over $5,000. - State tax withheld at claim: the withholding rule of the state that sold the ticket. - Estimated state tax: the tax of the state where you bought the ticket or the state where you live, whichever is higher. - City tax: New York City or Yonkers tax for New York residents who choose their city. - Take-home at claim: the prize minus federal and state withholding. - Estimated federal tax at your bracket: an optional figure from the 2026 federal rates, 10% to 37%.
Below the result, a table shows the same prize in every state side by side, with each state's source and the date it was checked. The calculator covers the 47 US jurisdictions that sell lottery tickets – 45 states, DC and Puerto Rico – and every state where a winner can live. Three rules make it fit Pick 3 and Pick 4 prizes: the 2026 W-2G threshold of $2,000 is built in, the wager comes off before each federal test, and every state rate names its source. The calculator is free and needs no account.
How Does the Lottery Tax Calculator Work Out Your Tax?
The lottery tax calculator subtracts your wager from the prize, applies the 2026 federal rules – a Form W-2G from $2,000 and 24% withholding above $5,000 – and then the rule of the state that sold the ticket.
- Winnings minus wager: the calculator subtracts the ticket price from the prize. A $5,000 prize on a $1 play counts as $4,999.
- Form W-2G: the lottery issues a Form W-2G when winnings minus the wager are $2,000 or more and at least 300 times the wager (payments in 2026). Payers may test the full prize instead, so the calculator flags a $2,000 prize on a $1 play.
- Federal withholding: the lottery withholds 24% of the whole amount when winnings minus the wager exceed $5,000. Lotteries apply no 300-times test to withholding.
- State withholding: the state that sold the ticket withholds at its own rate above its own threshold. Some states withhold nothing.
- Home-state tax: a winner who lives in another state can owe tax to both states. The home state normally gives a credit for tax paid to the other state, so the estimate uses the higher of the two rates.
- Take-home at claim: the prize minus federal and state withholding is the cash the lottery pays.
The tax on lottery winnings has two parts. Federal income tax is withheld at 24% above $5,000. State income tax runs from 0% in states such as Florida and Texas to 10.9% withheld in New York. Lottery winnings are fully taxable income and are reported on Form 1040, Schedule 1, even without a Form W-2G (IRS Topic 419). Withholding at claim is a prepayment: the final federal and state tax is worked out on your tax return. To find the prize a play pays before tax, start with the Pick 3 payout calculator.
How Much State Tax Comes Off a Lottery Prize in Each State?
State tax on a lottery prize depends on the state: most lottery states tax prizes and withhold above a set amount, seven have no income tax, and California exempts its own lottery's prizes. The table lists every state's rule.
| State (ST) | Taxes lottery prizes? | Rate used in the estimate | State withholding at claim | State page |
|---|---|---|---|---|
| Alabama (AL) | Yes (no lottery in the state) | 5% | no Alabama lottery; residents owe Alabama tax on winnings | – |
| Alaska (AK) | No (no lottery, no income tax) | 0% | no Alaska lottery; no income tax | – |
| Arizona (AZ) | Yes | 2.5% | 2.5% on prizes over $5,000 | – |
| Arkansas (AR) | Yes | 3.7% | 3.7% on prizes over $5,000 | – |
| California (CA) | No (own lottery); yes on other states' prizes | none | none – California Lottery prizes are exempt | – |
| Colorado (CO) | Yes | 4% | 4% on prizes over $5,000 | – |
| Connecticut (CT) | Yes | 6.99% | 6.99% on prizes over $5,000 or reportable to the IRS | – |
| Delaware (DE) | Not confirmed | not confirmed | not confirmed – check with the state | – |
| District of Columbia (DC) | Yes | 8.5% | 8.5% on prizes over $5,000 | – |
| Florida (FL) | No | 0% | none – no personal income tax | taxes on Florida lottery winnings |
| Georgia (GA) | Yes | 4.99% | 4.99% on prizes over $5,000 | taxes on Georgia lottery winnings |
| Hawaii (HI) | Yes (no lottery in the state) | 11% | no Hawaii lottery; residents owe Hawaii tax on winnings | – |
| Idaho (ID) | Yes | 5.3% | 5.3% on prizes over $5,000 | – |
| Illinois (IL) | Yes | 4.95% | 4.95% on payments of $1,000 or more | – |
| Indiana (IN) | Yes | 2.95% | 2.95% on prizes over $1,200 | – |
| Iowa (IA) | Yes | 3.8% | 3.8% on prizes over $600 | – |
| Kansas (KS) | Yes | 5% | 5% on prizes over $5,000 | – |
| Kentucky (KY) | Yes | 3.5% | state tax on prizes over $5,000 (rate not confirmed) | taxes on Kentucky lottery winnings |
| Louisiana (LA) | Yes | 3% | 3% on prizes of $5,000 or more | – |
| Maine (ME) | Yes | 7.15% | 7.15% on prizes over $5,000 | – |
| Maryland (MD) | Yes | 9.5% | 9.5% (residents) or 8.75% (nonresidents) on prizes over $5,000 | – |
| Massachusetts (MA) | Yes | 5% | 5% on prizes of $600 or more | – |
| Michigan (MI) | Yes | 4.25% | 4.25% on prizes over $5,000 | – |
| Minnesota (MN) | Yes | 7.25% | 7.25% on prizes over $5,000 | – |
| Mississippi (MS) | Yes | 3% | 3% on prizes over $600 | – |
| Missouri (MO) | Yes | 4% | 4% on prizes of $600.01 or more | – |
| Montana (MT) | Yes | 5.9% | 5.9% on prizes over $5,000 | – |
| Nebraska (NE) | Yes | 3.5% | 3.5% on prizes with federal withholding | – |
| Nevada (NV) | No (no lottery, no income tax) | 0% | no Nevada lottery; no income tax | – |
| New Hampshire (NH) | No | 0% | none – no personal income tax | – |
| New Jersey (NJ) | Only NJ Lottery prizes over $10,000 | 5% | none up to $10,000; 5% to $500,000; 8% over $500,000 | taxes on New Jersey lottery winnings |
| New Mexico (NM) | Yes | 6% | 6% on prizes over $5,000 | – |
| New York (NY) | Yes | 10.9% | 10.9% on prizes over $5,000, plus city tax for NYC and Yonkers residents | taxes on New York lottery winnings |
| North Carolina (NC) | Yes | 3.99% | 3.99% on prizes of $600 or more | taxes on North Carolina lottery winnings |
| North Dakota (ND) | Yes | 2.5% | 2.5% on prizes over $5,000 | – |
| Ohio (OH) | Yes | 2.75% | 2.75% on prizes reportable to the IRS ($2,000 or more) | taxes on Ohio lottery winnings |
| Oklahoma (OK) | Yes | 4.5% | withheld; rate and threshold not confirmed | – |
| Oregon (OR) | Yes | 8% | 8% on prizes of $1,500 or more | – |
| Pennsylvania (PA) | Yes | 3.07% | 3.07% on prizes over $5,000 | taxes on Pennsylvania lottery winnings |
| Puerto Rico (PR) | Not confirmed | not confirmed | not confirmed – check with Puerto Rico | – |
| Rhode Island (RI) | Yes | 5.99% | 5.99% on prizes over $5,000 | – |
| South Carolina (SC) | Yes | 7% | 7% on prizes of $500 or more | taxes on South Carolina lottery winnings |
| South Dakota (SD) | No | 0% | none – no personal income tax | – |
| Tennessee (TN) | No | 0% | none – no personal income tax | – |
| Texas (TX) | No | 0% | none – no personal income tax | – |
| Utah (UT) | Yes (no lottery in the state) | 4.45% | no Utah lottery; residents owe Utah tax on winnings | – |
| Vermont (VT) | Yes | 6% | 6% on prizes over $5,000 | – |
| Virginia (VA) | Yes | 4% | 4% on prizes over $5,000 | taxes on Virginia lottery winnings |
| Washington (WA) | No | 0% | none – no personal income tax | – |
| West Virginia (WV) | Yes | 4.82% | 4.82% on prizes over $5,000 | – |
| Wisconsin (WI) | Yes | 7.65% | 7.65% on prizes of $2,000 or more | – |
| Wyoming (WY) | No | 0% | none – no personal income tax | – |
The seven lottery states with no personal income tax are Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. A state that does not tax its own lottery's prizes can still tax its residents' winnings from another state's lottery. California taxes residents on out-of-state lottery winnings, and New Jersey taxes out-of-state lottery winnings at any amount. City and county taxes other than New York City and Yonkers are not modelled; Detroit, Ohio cities and Indiana counties are examples. The extra 4% Massachusetts surtax on income over about $1 million is not modelled either. Choose a state in the calculator for exact figures; the sections below give the rule of each state players search most, with a worked example.
Arizona (AZ) Lottery Tax
Arizona taxes lottery prizes at 2.5%, its flat income tax rate. The Arizona Lottery withholds 2.5% from prizes that have federal withholding – prizes over $5,000 after the wager. A $5,000 prize has nothing withheld at claim and owes $125 in Arizona tax on your return.
Arkansas (AR) Lottery Tax
Arkansas taxes lottery prizes, and the Arkansas Scholarship Lottery withholds 3.7% state tax from prizes over $5,000. Smaller prizes have no state withholding but stay taxable. On a $10,000 prize, 3.7% is $370.
California (CA) Lottery Tax
California does not tax California Lottery prizes, so a Daily 3 or Daily 4 win has no California tax and no state withholding. Federal tax still applies. California residents owe California tax on lottery winnings from another state at their normal rate. Daily 3 and Daily 4 pay pari-mutuel prizes, so enter the amount on your claim.
Colorado (CO) Lottery Tax
Colorado taxes lottery prizes at 4%, and the Colorado Lottery withholds 4% from prizes over $5,000. A $500 Colorado Pick 3 prize has no state withholding and owes $20 in Colorado tax when you file.
Florida (FL) Lottery Tax
Florida has no personal income tax, so Florida takes no state tax from lottery prizes. A $500 Florida Pick 3 win or a $5,000 Pick 4 win has no state withholding. Federal rules still apply: a Form W-2G from $2,000 and 24% withholding above $5,000 after the wager.
Georgia (GA) Lottery Tax
Georgia taxes lottery prizes, and the Georgia Lottery withholds 4.99% Georgia income tax from prizes over $5,000. A $5,000 Cash 4 prize on a $1 play has no state withholding and owes $249.50 in Georgia tax when you file.
Illinois (IL) Lottery Tax
Illinois withholds 4.95% Illinois income tax from each Illinois Lottery payment of $1,000 or more. A $500 Illinois Pick 3 prize has no state withholding. A $5,000 Illinois Pick 4 prize has $247.50 withheld at claim.
Kentucky (KY) Lottery Tax
Kentucky taxes lottery prizes as income at its 3.5% flat rate for 2026, and the Kentucky Lottery withholds state tax on prizes over $5,000. A $5,000 Kentucky Pick 4 prize on a $1 play has no state withholding and owes $175 in Kentucky tax when you file.
Massachusetts (MA) Lottery Tax
Massachusetts withholds 5% state tax from lottery winnings of $600 or more, whatever the winner's state of residence. The Numbers Game pays pari-mutuel prizes, so enter the amount on your claim. A 4% surtax on income over about $1 million applies on top but is not modelled.
Michigan (MI) Lottery Tax
Michigan taxes lottery prizes at 4.25%, and the Michigan Lottery withholds 4.25% from prizes over $5,000, whatever the winner's state of residence. A $5,000 Daily 4 prize has no state withholding and owes $212.50 in Michigan tax when you file. Detroit and some other Michigan cities add a city income tax that the calculator does not model.
New Jersey (NJ) Lottery Tax
New Jersey does not tax NJ Lottery prizes of $10,000 or less, so a Pick-3 or $5,000 Pick-4 win has no New Jersey tax. Prizes over $10,000 are taxable, with 5% withheld up to $500,000 and 8% above $500,000 or without a taxpayer ID. New Jersey taxes out-of-state lottery winnings at any amount.
New York (NY) Lottery Tax
New York withholds state tax at its top rate of 10.9% when a New York Lottery prize minus the wager exceeds $5,000. New York City residents add 3.876% city tax, and Yonkers residents add 16.75% of the state tax (about 1.83%). For nonresidents, a New York Lottery prize counts as New York income only above $5,000. On a $10,000 Win 4 prize, 10.9% is $1,090.
North Carolina (NC) Lottery Tax
North Carolina withholds 3.99% state income tax from lottery winnings of $600 or more (2026 rate). A $500 Carolina Pick 3 prize has no state withholding. A $5,000 Carolina Pick 4 prize has $199.50 withheld at claim, for residents and nonresidents alike.
Ohio (OH) Lottery Tax
Ohio withholds 2.75% state tax (2026) from each lottery prize that must be reported to the IRS – in 2026, prizes of $2,000 or more. A $5,000 Ohio Pick 4 prize has $137.50 withheld at claim. Ohio cities may also tax lottery winnings; the calculator does not model city tax.
Oregon (OR) Lottery Tax
Oregon withholds 8% state tax from every Oregon Lottery prize of $1,500 or more. A $5,000 Oregon Pick 4 prize has $400 withheld at claim, which leaves $4,600 after state withholding. Prizes under $1,500 have no state withholding but stay taxable.
Pennsylvania (PA) Lottery Tax
Pennsylvania taxes PA Lottery cash prizes at its 3.07% flat income tax rate, and the PA Lottery withholds 3.07% from prizes over $5,000. Cash prizes paid since January 1, 2016 are taxable. A $5,000 Pennsylvania Pick 4 prize has no state withholding and owes $153.50 in state tax when you file.
South Carolina (SC) Lottery Tax
South Carolina withholds 7% from lottery prizes of $500 or more, for residents and nonresidents alike. A $500 South Carolina Pick 3 prize has $35 withheld at claim. South Carolina income tax for 2026 runs at 1.99% and 5.21%, so the 7% withheld can be more than the final state tax.
Texas (TX) Lottery Tax
Texas does not tax lottery winnings, because Texas has no personal income tax. A Texas Pick 3 or Daily 4 prize has no state withholding, and the full amount is paid at claim. Federal tax still applies: 24% is withheld above $5,000 after the wager, and every prize goes on your federal return.
Virginia (VA) Lottery Tax
Virginia withholds 4% state income tax from the whole prize when a Virginia Lottery prize exceeds $5,000, for residents and nonresidents. Virginia income tax is graduated from 2% to 5.75%, so the 4% withheld can differ from the final tax. A $5,000 Virginia Pick 4 prize has no state withholding and owes $200 in the estimate.
Wisconsin (WI) Lottery Tax
Wisconsin withholds 7.65% from lottery prizes of $2,000 or more. A $5,000 Wisconsin Pick 4 prize has $382.50 withheld at claim. A $500 Pick 3 prize has no state withholding but stays taxable in Wisconsin.
When Is Federal Tax Withheld From Lottery Winnings?
Federal tax is withheld from lottery winnings when the prize minus the wager is more than $5,000: the lottery then withholds 24% of that whole amount. Smaller prizes have no regular federal withholding but are still taxable income.
| Rule (2026) | Threshold | $500 Pick 3 win ($1 straight) | $5,000 Pick 4 win ($1 straight) | $10,000 Pick 4 win ($2 straight) |
|---|---|---|---|---|
| Form W-2G issued | $2,000 or more and at least 300× the wager | No | Yes | Yes |
| 24% federal withholding | winnings minus wager over $5,000 | No – $0 | No – $0 (winnings minus wager $4,999) | Yes – $2,399.52 (24% of $9,998, calculated) |
Taxes on $5,000 in lottery winnings start with the wager: a $5,000 prize on a $1 play is $4,999 after the wager, so no federal tax is withheld, but a Form W-2G is issued. The same prize on a $0.50 play is also $4,999.50, below the line. Before 2026 the W-2G threshold was $600; payments made in 2026 use $2,000, and the IRS indexes it for inflation after 2026. Winnings paid to a nonresident alien generally have 30% withheld and are reported on Form 1042-S instead of a W-2G. Backup withholding of 24% applies when a winner gives no correct taxpayer ID.
| Prize | Winnings minus wager | Form W-2G | Federal tax withheld (24%) | Left after federal withholding |
|---|---|---|---|---|
| $1,000 | $999 | No | $0 | $1,000 |
| $50,000 (Pick 5) | $49,999 | Yes | $11,999.76 | $38,000.24 |
| $1,000,000 | $999,999 | Yes | $239,999.76 | $760,000.24 |
| $2,000,000 | $1,999,999 | Yes | $479,999.76 | $1,520,000.24 |
| $10,000,000 | $9,999,999 | Yes | $2,399,999.76 | $7,600,000.24 |
A $1 million lottery prize leaves $760,000.24 after taxes withheld by the federal government, before state tax. State withholding then comes off: nothing more in Florida or Texas, and another 10.9% in New York. Taxes on a $2 million or $10 million prize follow the same 24% rule. The 24% withheld is a prepayment; the federal tax you owe is worked out on your return, and the calculator's optional bracket choice estimates it.
Lottery Tax Calculator FAQ
Beyond the figures the calculator shows, these answers cover the tax questions lottery winners ask most.
Do you pay taxes on $1,000 in lottery winnings?
Yes. A $1,000 lottery prize is taxable income and goes on your federal return, but in 2026 it gets no Form W-2G, because the threshold is $2,000, and no federal tax is withheld. State tax depends on the state's rules.
How much tax is taken out of lottery winnings?
Federal tax of 24% is taken out when the prize minus the wager is over $5,000, plus state withholding where the state taxes lottery prizes. Below that, no regular federal tax is withheld. Enter your prize in the calculator to see the exact split for your state.
How many times do you pay taxes on lottery winnings?
Lottery winnings are taxed as income once, for the year you receive them – on your federal return and on the return of any state that taxes them. Tax withheld at claim counts toward that tax when you file; it is not an extra tax.
Do you have to claim lottery winnings on your taxes?
Yes. All lottery winnings are taxable and belong on Form 1040, Schedule 1, even when the lottery issues no Form W-2G – for example a $500 Pick 3 win, which is below the 2026 W-2G threshold of $2,000.
What is the federal tax rate on lottery winnings?
The lottery withholds federal tax at 24% when the prize minus the wager exceeds $5,000, and generally at 30% for nonresident aliens, who receive Form 1042-S instead of a W-2G. Withholding is not the final rate: the tax you owe depends on your total income for the year.
Is there tax on lottery tickets?
Federal tax applies to lottery winnings, and the ticket price counts as the wager. The calculator subtracts the wager from the prize before the $2,000 Form W-2G test and the $5,000 withholding test, so a $1 ticket lowers the taxed winnings by $1.
Facts checked October 2026 against IRS Form W-2G instructions (2026), IRS Topic 419, Federal Register, April 17, 2026 (W-2G threshold, loss limit) and Each state's revenue department or state lottery (state lottery tax table). Report an error