How this calculator works
Lottery prizes are taxed as ordinary income. For a jackpot, almost the whole prize lands in the top federal bracket, which is 37% in 2026 for income above $640,600 for single filers and $768,700 for married couples filing jointly. The calculator applies 37% to the whole prize, which slightly overstates the tax on a jackpot (the first few hundred thousand dollars are taxed at lower rates), so the real take-home is a little higher, not lower.
When you claim a prize over $5,000, the lottery withholds 24% for federal tax. That is not the full bill. The difference between 24% and your real rate is paid when you file your return, and many first-time winners are caught out by it. The breakdown above shows both parts.
State tax uses the rate of the state where you live. Where we have not yet verified a state's current rate against its revenue department, the calculator says so and shows federal tax only, rather than guessing. New York City and Yonkers residents also pay local tax, and both are included above: New York City at its top rate of 3.876%, and Yonkers as a surcharge of 16.75% of the New York State tax (about 1.83% of the prize at the 10.9% state rate). If you bought your ticket in another state, read ticket state vs home state.
Want the details? Read our methodology, the guide to 24% withheld vs 37% owed, or the lump sum vs annuity guide.
Frequently asked questions
What is the cash value of a jackpot?
The advertised jackpot is the total of 30 annuity payments. The cash value is what the lottery would pay you today instead. It is usually between 40% and 50% of the advertised amount, depending on interest rates. Each lottery publishes the cash value before every draw.
Can I lower the tax on lottery winnings?
Not by much. Charitable gifts, the timing of deductions and, for the annuity, spreading income over 30 years can help at the margin. A tax professional can tell you what applies to you.
Do I pay tax in the state where I bought the ticket?
Sometimes. The state that sold the ticket may tax nonresident winners, and your home state usually taxes you too, with a credit for tax paid to the other state. This calculator uses your home state. Our guide to ticket state vs home state explains the rules.
Is this tax advice?
No. These are estimates for information. Before you claim a large prize, talk to a tax professional and a lawyer.