Powerball — Mega Millions —

Lottery taxes withheld versus owed by state

By · Withholding checked November 6, 2026

The claim check shows advance tax payments, not a completed return. A state can withhold less than its highest income-tax rate. Smaller prizes can have more withheld than the eventual tax. This comparison separates claim-time rules from the state planning rates in our calculator.

Federal: 24% withheld versus a 37% top rate

For a US taxpayer, regular federal lottery withholding is 24% when winnings minus the wager exceed $5,000. It applies to the proceeds, not just the excess. Federal income tax is progressive, topping out at 37% in 2026. We conservatively apply 37% to the entire cash prize in our lottery calculator. Actual liability depends on filing status, deductions and other income. Nonresident-alien rules differ.

Ignoring ticket cost, $1 million cash has $240,000 withheld federally. Our $370,000 planning reserve leaves a further $130,000. Compare the $1 million state table or enter your payment in the lottery tax calculator.

State withholding and tax owed

Only five withholding rules verified for this comparison are populated. Others remain being verified even where the site's income-tax rate has been researched. The planning column is often a top marginal rate, not your exact tax owed. It excludes local taxes, deductions and two-state credits.

JurisdictionLottery withholding at claimState tax planning rateScope, source and date
Alabamabeing verifiedbeing verifiedNo claim-time rate asserted here.
Alaskabeing verifiedbeing verifiedNo claim-time rate asserted here.
Arizonabeing verifiedbeing verifiedNo claim-time rate asserted here.
Arkansasbeing verifiedbeing verifiedNo claim-time rate asserted here.
Californiabeing verifiedbeing verifiedNo claim-time rate asserted here.
Coloradobeing verifiedbeing verifiedNo claim-time rate asserted here.
Connecticutbeing verifiedbeing verifiedNo claim-time rate asserted here.
Delawarebeing verifiedbeing verifiedNo claim-time rate asserted here.
District of Columbiabeing verifiedbeing verifiedNo claim-time rate asserted here.
Floridabeing verifiedbeing verifiedNo claim-time rate asserted here.
Georgiabeing verifiedbeing verifiedNo claim-time rate asserted here.
Hawaiibeing verifiedbeing verifiedNo claim-time rate asserted here.
Idahobeing verifiedbeing verifiedNo claim-time rate asserted here.
Illinois4.95% on a single payment over $1,000 per the rate page4.95% planning rate; actual return may differPub-130 uses $1,000 or more for the IL-5754 form requirement. Confirm an exactly $1,000 payment with the payer. Official source; withholding checked November 6, 2026. Rate source and date on state page.
Indianabeing verifiedbeing verifiedNo claim-time rate asserted here.
Iowabeing verifiedbeing verifiedNo claim-time rate asserted here.
Kansasbeing verifiedbeing verifiedNo claim-time rate asserted here.
Kentuckybeing verifiedbeing verifiedNo claim-time rate asserted here.
Louisianabeing verifiedbeing verifiedNo claim-time rate asserted here.
Mainebeing verifiedbeing verifiedNo claim-time rate asserted here.
Marylandbeing verifiedbeing verifiedNo claim-time rate asserted here.
Massachusettsbeing verifiedbeing verifiedNo claim-time rate asserted here.
Michiganbeing verifiedbeing verifiedNo claim-time rate asserted here.
Minnesotabeing verifiedbeing verifiedNo claim-time rate asserted here.
Mississippibeing verifiedbeing verifiedNo claim-time rate asserted here.
Missouribeing verifiedbeing verifiedNo claim-time rate asserted here.
Montanabeing verifiedbeing verifiedNo claim-time rate asserted here.
Nebraskabeing verifiedbeing verifiedNo claim-time rate asserted here.
Nevadabeing verifiedbeing verifiedNo claim-time rate asserted here.
New Hampshirebeing verifiedbeing verifiedNo claim-time rate asserted here.
New Jersey5% above $10,000 through $500,000; 8% above $500,00010.75% planning rate; actual return may differNJ Lottery prizes of $10,000 or less are exempt. Official source; withholding checked November 6, 2026. Rate source and date on state page.
New Mexicobeing verifiedbeing verifiedNo claim-time rate asserted here.
New Yorkbeing verifiedbeing verifiedNo claim-time rate asserted here.
North Carolinabeing verifiedbeing verifiedNo claim-time rate asserted here.
North Dakotabeing verifiedbeing verifiedNo claim-time rate asserted here.
Ohiobeing verifiedbeing verifiedNo claim-time rate asserted here.
Oklahomabeing verifiedbeing verifiedNo claim-time rate asserted here.
Oregon8% on single-ticket prizes of $1,500 or more9.9% planning rate; actual return may differGraduated state tax; Portland-area local taxes excluded. Official source; withholding checked November 6, 2026. Rate source and date on state page.
Pennsylvania3.07% on prizes greater than $5,0003.07% planning rate; actual return may differPA Lottery cash prizes are taxable; noncash exclusions differ. Official source; withholding checked November 6, 2026. Rate source and date on state page.
Rhode Islandbeing verifiedbeing verifiedNo claim-time rate asserted here.
South Carolinabeing verifiedbeing verifiedNo claim-time rate asserted here.
South Dakotabeing verifiedbeing verifiedNo claim-time rate asserted here.
Tennesseebeing verifiedbeing verifiedNo claim-time rate asserted here.
Texasbeing verifiedbeing verifiedNo claim-time rate asserted here.
Utahbeing verifiedbeing verifiedNo claim-time rate asserted here.
Vermontbeing verifiedbeing verifiedNo claim-time rate asserted here.
Virginia4% on proceeds over $5,000; periodic-payment rules also apply5.75% planning rate; actual return may differConsult the regulation for residence and installment details. Official source; withholding checked November 6, 2026. Rate source and date on state page.
Washingtonbeing verifiedbeing verifiedNo claim-time rate asserted here.
West Virginiabeing verifiedbeing verifiedNo claim-time rate asserted here.
Wisconsinbeing verifiedbeing verifiedNo claim-time rate asserted here.
Wyomingbeing verifiedbeing verifiedNo claim-time rate asserted here.

Examples of a reserve gap

Virginia withholds 4% while its top rate is 5.75%: a $175,000 planning difference on $10 million cash. Oregon withholds 8% while its top rate is 9.9%: a $190,000 difference before local tax. These are rate comparisons before progressive brackets and other return details. Withholding is credited against the bill; it is not an extra tax.

Common questions

Can I spend the claim check?

Keep a reserve until you reconcile payments with your expected return. Review estimated-payment requirements with a preparer.

Does the lottery handle both states?

Do not assume so. Ticket-state withholding may leave a home-state obligation or a credit calculation. Read ticket state versus home state.

Why are rows being verified?

An income-tax rate alone does not establish a lottery's withholding threshold, residency scope or procedure.

Sources

Checked November 6, 2026: IRS W-2G instructions and IRS Publication 505, 2026 tax worksheets. State withholding sources appear in populated rows; the linked state pages retain their dated rate sources. Read more about 24% versus 37%.