Lottery Tax Calculator — Calculate Your After-Tax Winnings
Calculate federal and state taxes on lottery winnings. See the difference between lump sum and annuity payout after taxes.
Lottery winnings in the United States are subject to significant taxation. The IRS withholds 24% federal tax on winnings above $5000 but your actual tax rate is 37% on amounts above $609350 (2026). State taxes add 0-13% depending on your state. On a $1 million jackpot the immediate withholding is approximately $370000 but you may owe additional tax when you file. Understanding the true after-tax amount prevents overspending.
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US Take-Home Pay Calculator
Key Information
| Parameter | Details |
|---|---|
| Federal Tax Rate (top bracket) | 37% on winnings above $609350 |
| Federal Withholding | 24% immediate deduction |
| State Tax Range | 0% (FL TX etc) to 13% (NY) |
| Lump Sum Discount | Approximately 50-60% of advertised jackpot |
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Use Calculator NowFrequently Asked Questions
How much tax on $1 million lottery win?
On $1000000 lump sum (assuming no state tax): federal tax at effective rate approximately 34% = $340000. Take-home approximately $660000. In New York add 10.9% state tax = $109000 more. Take-home in NY: $551000. In Texas Florida Nevada (no state tax) you keep approximately $660000. The advertised $1 million becomes roughly $550000-$660000 after all taxes.
Lump sum vs annuity which is better?
Lump sum: receive approximately 50-60% of advertised jackpot immediately. Pay all taxes upfront but can invest the proceeds. If invested at 7-8% returns the lump sum typically grows to more than the annuity total. Annuity: receive the full advertised amount in 30 annual payments. Each payment is taxed individually. Annuity protects against overspending and provides guaranteed income. Financial math favors lump sum for disciplined investors.
Which states have no lottery tax?
Nine states have no state income tax on lottery winnings: Florida Texas Tennessee Wyoming Washington New Hampshire South Dakota Nevada and Alaska. California does not tax lottery winnings either despite having state income tax. If you win big and live in a high-tax state like New York (10.9%) or Maryland (8.75%) the difference between states can be hundreds of thousands of dollars.
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Last updated: March 2026