Lottery Taxes by State (2026)
Every lottery winner pays the same federal tax — 24% withheld up front, 37% top bracket at filing. What varies is the state cut: from nothing at all in 11 states to 10.9% in New York (and 14.776% for New York City residents). Rates below are estimated final state tax on jackpot-size wins, as of January 2026, applied by the state where the ticket was purchased.
All 50 states + DC, from lowest to highest
The last column shows the net lump sum from a $1 billion advertised jackpot (47% cash value) after federal and state taxes.
| State | State tax on lottery wins | Notes | $1B jackpot, lump sum net |
|---|---|---|---|
| Alaska | None | Alaska has no state lottery and no state income tax, so an out-of-state win carries no Alaska tax. | $296,144,043 |
| California | None | California specifically exempts California Lottery winnings from state income tax, even though it taxes other income. | $296,144,043 |
| Delaware | None | Delaware does not withhold state tax on lottery winnings. | $296,144,043 |
| Florida | None | Florida has no state income tax, so lottery winnings face only federal tax. | $296,144,043 |
| Nevada | None | Nevada has no state lottery and no state income tax — Nevadans typically buy tickets in California or Arizona; that state's withholding rules apply. | $296,144,043 |
| New Hampshire | None | New Hampshire has no tax on lottery winnings (and no broad income tax). | $296,144,043 |
| South Dakota | None | South Dakota has no state income tax, so lottery winnings face only federal tax. | $296,144,043 |
| Tennessee | None | Tennessee has no state income tax, so lottery winnings face only federal tax. | $296,144,043 |
| Texas | None | Texas has no state income tax, so lottery winnings face only federal tax. | $296,144,043 |
| Washington | None | Washington has no state income tax, so lottery winnings face only federal tax. | $296,144,043 |
| Wyoming | None | Wyoming has no state income tax, so lottery winnings face only federal tax. | $296,144,043 |
| Arizona | 2.5% | Arizona's flat 2.5% income tax applies; the Arizona Lottery withholds at this rate. Arizona also taxes nonresident winners. | $284,394,043 |
| North Dakota | 2.5% | North Dakota's top income tax rate of 2.5% is the lowest among states that tax lottery winnings. | $284,394,043 |
| Ohio | 2.75% | Ohio completed its move to a flat 2.75% income tax in 2026, which applies to lottery prizes; 4% may be withheld up front. | $283,219,043 |
| Indiana | 3% | Indiana's flat state income tax (3.0%, phasing down) applies; counties may add a small local tax. | $282,044,043 |
| Louisiana | 3% | Louisiana switched to a flat 3% income tax in 2025, which applies to lottery winnings. | $282,044,043 |
| Pennsylvania | 3.07% | Pennsylvania's flat 3.07% income tax is withheld from lottery prizes over $5,000. | $281,715,043 |
| Kentucky | 3.5% | Kentucky's flat income tax fell to 3.5% for 2026. | $279,694,043 |
| Iowa | 3.8% | Iowa moved to a flat 3.8% income tax; the lottery withholds 5% up front on large prizes, with the difference settled at filing. | $278,284,043 |
| Arkansas | 3.9% | Arkansas' top individual income tax rate of 3.9% applies to lottery prizes. | $277,814,043 |
| North Carolina | 3.99% | North Carolina's flat income tax fell to 3.99% for 2026 and applies to lottery prizes. | $277,391,043 |
| Mississippi | 4% | Mississippi's flat income tax (4% for 2026, phasing down) applies to lottery winnings. | $277,344,043 |
| Michigan | 4.25% | Michigan's flat 4.25% income tax is withheld from large lottery prizes; some cities add a local income tax. | $276,169,043 |
| Colorado | 4.4% | Colorado's flat income tax is 4.4%; the lottery withholds 4% up front and the remainder is settled at filing. | $275,464,043 |
| Utah | 4.5% | Utah has no state lottery. Residents who win on tickets bought in another state owe Utah's flat income tax (~4.5%) when they file. | $274,994,043 |
| Nebraska | 4.55% | Nebraska's top income tax rate (4.55% for 2026, phasing down) applies; 5% is withheld up front. | $274,759,043 |
| Missouri | 4.7% | Missouri's top income tax rate of about 4.7% applies; 4% is withheld up front on prizes over $600. | $274,054,043 |
| Oklahoma | 4.75% | Oklahoma's top income tax rate of 4.75% applies; 4.75% is withheld on large prizes. | $273,819,043 |
| West Virginia | 4.82% | West Virginia's top income tax rate (about 4.82% after recent cuts) applies; 6.5% may be withheld up front. | $273,490,043 |
| Illinois | 4.95% | Illinois withholds its flat 4.95% income tax on prizes over $1,000. | $272,879,043 |
| Alabama | 5% | Alabama has no state lottery. Residents who win on tickets bought in another state still owe Alabama income tax (top rate 5%) when they file. | $272,644,043 |
| Georgia | 5.19% | Georgia's flat income tax (5.19% for 2026, scheduled to keep falling) applies to lottery prizes. | $271,751,043 |
| Idaho | 5.3% | Idaho's flat 5.3% income tax rate applies to lottery winnings. | $271,234,043 |
| Kansas | 5.7% | Kansas' top income tax rate of about 5.7% applies to lottery prizes; 5% is withheld up front. | $269,354,043 |
| Virginia | 5.75% | Virginia withholds 4% up front, but its top rate of 5.75% applies at filing. | $269,119,043 |
| Montana | 5.9% | Montana's top income tax rate of 5.9% applies to lottery winnings. | $268,414,043 |
| New Mexico | 5.9% | New Mexico's top income tax rate of 5.9% applies to jackpot-size prizes. | $268,414,043 |
| Rhode Island | 5.99% | Rhode Island's top income tax rate of 5.99% is withheld from large lottery prizes. | $267,991,043 |
| South Carolina | 6.2% | South Carolina's top income tax rate (6.2%, phasing down toward 6% or lower) applies; 7% may be withheld up front. | $267,004,043 |
| Connecticut | 6.99% | Connecticut withholds at its top rate of 6.99% on lottery prizes. | $263,291,043 |
| Maine | 7.15% | Maine's top income tax rate of 7.15% applies to jackpot-size prizes; 5% is withheld up front. | $262,539,043 |
| Wisconsin | 7.65% | Wisconsin's top income tax rate of 7.65% applies to jackpot-size lottery prizes. | $260,189,043 |
| Vermont | 8.75% | Vermont's top income tax rate of 8.75% applies to jackpot-size prizes; 6% is withheld up front. | $255,019,043 |
| Maryland | 8.95% | Maryland withholds 8.95% for residents (8% for nonresidents) — state plus mandatory local tax. Maryland also taxes out-of-state winners. | $254,079,043 |
| Massachusetts | 9% | Massachusetts has a 5% flat tax plus a 4% surtax on income over about $1 million — jackpot winners effectively pay 9%. Only 5% is withheld up front. | $253,844,043 |
| Minnesota | 9.85% | Minnesota's top rate of 9.85% applies to jackpot-size prizes — one of the highest lottery tax states. | $249,849,043 |
| Oregon | 9.9% | Oregon withholds 8% up front, but its top rate of 9.9% applies to jackpot-size income — winners owe the difference at filing. | $249,614,043 |
| District of Columbia | 10.75% | DC's top income tax rate of 10.75% applies to jackpot-size prizes — among the highest in the country. | $245,619,043 |
| New Jersey | 10.75% | New Jersey withholds 8% up front, but its top rate of 10.75% applies to income over $1 million — jackpot winners owe the difference at filing. | $245,619,043 |
| New York | 10.9% | New York withholds at its top rate of 10.9% — the highest state lottery tax in the country. New York City residents pay an extra ~3.876% local tax (Yonkers also adds a local surcharge). | $244,914,043 |
| Hawaii | 11% | Hawaii has no state lottery. Residents who win on a mainland ticket owe Hawaii income tax (top rate 11%) when they file. | $244,444,043 |
Sources: state lottery and revenue agency published rates, cross-checked against worldpopulationreview.com and Tax Foundation 2026 rate tables. Rates as of January 2026; several states are phasing rates down annually — verify with the state lottery before relying on a figure. New York City adds 3.876% for city residents.
Key takeaways
- 11 jurisdictions take nothing: Alaska, California, Delaware, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
- California is the surprise: it taxes ordinary income up to 13.3%, but California Lottery winnings are exempt by state law.
- The spread is worth tens of millions: on a $1 billion jackpot, the lump-sum difference between Texas (no tax) and New York (10.9%) is about $51,230,000.
- Withholding ≠ final bill: states like New Jersey, Oregon, and Virginia withhold less than their top rate, and the IRS's 24% withholding covers barely two-thirds of the federal 37% bill.
Frequently asked questions
Which state has the highest lottery tax?
New York, at 10.9%. New York City residents pay about 14.78% combined once the ~3.876% city income tax is added — the highest lottery tax burden in the United States. Maryland (8.95% for residents) and the District of Columbia (10.75%) are close behind.
Which states take no tax on lottery winnings?
Eleven jurisdictions: Alaska, California, Delaware, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Most simply have no income tax; California and Delaware tax income but specifically exempt lottery prizes.
Do I pay tax where I bought the ticket or where I live?
Both can apply. The state where the ticket was purchased withholds first. Your home state then taxes you as a resident, usually with a credit for tax already paid to the other state. Only Arizona and Maryland tax nonresident winners on top of that.
Are these rates the same as what gets withheld from the check?
Not always. Some states withhold less up front than the winner ultimately owes — New Jersey withholds 8% but its top rate is 10.75%; Oregon withholds 8% against a 9.9% top rate; Virginia withholds 4% against 5.75%. The table shows the estimated final rate for jackpot-size wins.
Run your own numbers in the lottery payout calculator or compare payout options in lump sum vs annuity.