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; New York City is included above.
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.
Is this tax advice?
No. These are estimates for information. Before you claim a large prize, talk to a tax professional and a lawyer.