US Lottery Tax Calculator

US lottery winnings are ordinary income. Federal withholding is generally 24% on prizes over $5,000, and states may add their own tax.

29% is an example (24% federal withholding + 5% state). Your final federal tax depends on your bracket and can be higher. Some states do not tax lottery winnings. This is an estimate, not tax advice.

US Lottery Tax Calculator

Federal withholding: 24% on prizes over $5,000
State tax: varies (0%–8.82%+)
Final federal tax: your marginal bracket (up to 37%)

Claim procedures vary by state and game. Keep the ticket and check the official claim deadline.

Estimated net prize $7,100

Taxable prize $10,000

Estimated tax $2,900

Effective rate 29%

About This Calculator

US lottery winnings are treated as ordinary income. Federal withholding is generally 24% on prizes over $5,000, and states may add their own tax or exempt certain prizes.

This calculator estimates the net prize using a combined withholding rate. The default 29% is an example: 24% federal withholding plus 5% state tax.

Withholding is not the final tax. Your actual federal tax depends on your total income and bracket and can be higher than 24%. Some states do not tax lottery winnings.

Key Formula:Estimated tax = Prize × combined rate ; Net = Prize − tax

Frequently Asked Questions

How much tax is withheld from a US lottery prize?

Federal withholding is generally 24% on prizes over $5,000. States may withhold additional tax, and some states do not tax lottery winnings at all.

Is 24% the final federal tax?

No. It is a withholding rate. Your final tax depends on your marginal bracket, which can be higher. You may owe more at filing or receive a refund.

Are lottery winnings taxed by states?

It varies. Some states tax winnings, some exempt them, and some apply different rules for residents and non-residents. Check the state where the ticket was purchased.

Should I take the annuity or the lump sum?

This calculator does not model the annuity. A lump sum is usually reduced and then taxed; an annuity spreads payments over years, so the tax timing and bracket can differ.

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Sources & last update

2026-10-19