US Lottery Tax Guide by State
Winning the lottery is just the beginning. Depending on where you live, state taxes can take a significant chunk of your prize. Select your state below for a detailed breakdown.
Alabama
Tax Rate: 0%
Alaska
Tax Rate: 0%
Arizona
Tax Rate: 4.8%
Arkansas
Tax Rate: 4.4%
California
Tax Rate: 0%
Colorado
Tax Rate: 4.4%
Connecticut
Tax Rate: 6.99%
Delaware
Tax Rate: 0%
Florida
Tax Rate: 0%
Georgia
Tax Rate: 5.09%
Hawaii
Tax Rate: 0%
Idaho
Tax Rate: 5.8%
Illinois
Tax Rate: 4.95%
Indiana
Tax Rate: 2.95%
Iowa
Tax Rate: 5.7%
Kansas
Tax Rate: 5.7%
Kentucky
Tax Rate: 3.5%
Louisiana
Tax Rate: 4.25%
Maine
Tax Rate: 7.15%
Maryland
Tax Rate: 8.95%
Massachusetts
Tax Rate: 5%
Michigan
Tax Rate: 4.25%
Minnesota
Tax Rate: 9.85%
Mississippi
Tax Rate: 4%
Missouri
Tax Rate: 4.95%
Montana
Tax Rate: 5.65%
Nebraska
Tax Rate: 4.55%
Nevada
Tax Rate: 0%
New Hampshire
Tax Rate: 0%
New Jersey
Tax Rate: 10.75%
New Mexico
Tax Rate: 5.9%
New York
Tax Rate: 10.9%
North Carolina
Tax Rate: 3.99%
North Dakota
Tax Rate: 2.9%
Ohio
Tax Rate: 2.75%
Oklahoma
Tax Rate: 4.5%
Oregon
Tax Rate: 9.9%
Pennsylvania
Tax Rate: 3.07%
Rhode Island
Tax Rate: 5.99%
South Carolina
Tax Rate: 6%
South Dakota
Tax Rate: 0%
Tennessee
Tax Rate: 0%
Texas
Tax Rate: 0%
Utah
Tax Rate: 0%
Vermont
Tax Rate: 8.75%
Virginia
Tax Rate: 5.75%
Washington
Tax Rate: 0%
West Virginia
Tax Rate: 6.5%
Wisconsin
Tax Rate: 7.65%
Wyoming
Tax Rate: 0%
Washington D.C.
Tax Rate: 10.75%
Understanding Federal Tax
Regardless of which state you live in, the IRS takes a 24% federal withholding tax upfront for lottery winnings over $5,000. However, because the top federal income tax bracket is 37%, you will likely owe the remaining 13% when you file your tax return.
Lump Sum vs. Annuity
Most winners choose the lump sum (cash option), which is usually about 60% of the advertised jackpot. Our calculators help you understand the difference between the gross cash option and the net amount after all taxes are settled.