Lottery prizes over $5,000 have 24% federal tax withheld, but big prizes fall in the 37% bracket, so winners owe more at tax time. Some states – such as California, Florida and Texas – don’t tax lottery winnings; others charge up to about 11%.
How to use the Lottery Tax Calculator
- Advertised jackpot (annuity value)
- Lump sum (cash option) percentage
- Federal filing status
- State tax rate on lottery winnings
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the advertised jackpot, the cash option percentage, your filing status and your state’s tax rate on lottery winnings.
Tips
- Tax figures here are estimates for planning – your actual tax depends on credits, deductions and local rules.
- Check the tax year and filing status before you rely on a result.
- Use gross (before-tax) figures unless a field asks for take-home pay.
- When in doubt, confirm with the tax authority’s own calculator or a tax professional.
Common mistakes to avoid
- Confusing marginal and effective tax rates.
- Adding sales tax to a price that already includes it.
- Forgetting payroll taxes (Social Security and Medicare) on wages.
Inputs explained
| Field | What to enter |
|---|---|
| Advertised jackpot (annuity value) | Amount in your currency |
| Lump sum (cash option) percentage | In % |
| Federal filing status | Choose one: Single, Married filing jointly, Married filing separately, Head of household |
| State tax rate on lottery winnings | In % |
What each result means
- Lump sum before tax = [Advertised jackpot (annuity value)]×[Lump sum (cash option) percentage]÷100
- Federal withholding (24%) = [Lump sum before tax]×0.24
- State tax on the lump sum = [Lump sum before tax]×[State tax rate on lottery winnings]÷100
- Lump sum after taxes = [Lump sum before tax] – [Total federal tax on the lump sum] – [State tax on the lump sum]
- Extra federal tax due beyond withholding = [Total federal tax on the lump sum] – [Federal withholding (24%)]
- First annuity payment before tax = [Advertised jackpot (annuity value)]×0.05÷((1.05)^30 – 1)
- Total annuity after tax (30 payments, approx.) = [Advertised jackpot (annuity value)]×(1 – 0.355 – [State tax rate on lottery winnings]÷100)
Example values
How the main result changes when Advertised jackpot changes and everything else stays at the example values above:
| Advertised jackpot (annuity value) | Lump sum after taxes |
|---|---|
| 50,000,000 | 13,685,792.75 |
| 75,000,000 | 20,506,667.75 |
| 100,000,000 | 27,327,542.75 |
| 125,000,000 | 34,148,417.75 |
| 150,000,000 | 40,969,292.75 |
| 200,000,000 | 54,611,042.75 |
Formula
Lump sum = jackpot × cash option %Federal withholding = 24%; actual federal tax ≈ 2026 brackets on the prize (top rate 37%)State tax = prize × state rateAnnuity: 30 payments growing 5% a year (first ≈ jackpot × 1.5% )Worked example
Inputs — Advertised jackpot (annuity value): $100,000,000; Lump sum (cash option) percentage: 47 %; Federal filing status: Single; State tax rate on lottery winnings: 4.95 %.
Results — Lump sum before tax = $47,000,000.00; Federal withholding (24%) = $11,280,000.00; Total federal tax on the lump sum = $17,345,957.25; State tax on the lump sum = $2,326,500.00; Lump sum after taxes = $27,327,542.75; Extra federal tax due beyond withholding = $6,065,957.25; First annuity payment before tax = $1,505,143.51; First annuity payment after tax = $917,778.56; Total annuity after tax (30 payments, approx.) = $59,550,000.00.
Frequently asked questions
How much tax do you pay on lottery winnings?
24% is withheld federally, but large prizes are taxed at up to 37%, plus state tax.
Lump sum or annuity?
The lump sum gives control now; the annuity pays more in total and spreads the tax.
Which states don't tax lottery winnings?
California, Delaware, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, among others.
What formula does the Lottery Tax Calculator use?
Lump sum = jackpot × cash option %.