Alaska and the lottery: no state lottery, no state income tax
Alaska is one of the few states without a lottery, so Alaskans cannot buy Powerball or Mega Millions tickets at home. Alaska also has no personal income tax, so if you win while traveling, Alaska will not add a tax of its own.
Take-home pay on a lump-sum prize in Alaska
The table applies the top federal rate of 37% plus no state tax. Amounts are the cash (lump-sum) value you receive, not the advertised annuity jackpot.
| Cash prize | Federal (37%) | State | You keep |
|---|---|---|---|
| $1.00M | −$370,000 | $0 | $630,000 |
| $10.00M | −$3.70M | $0 | $6.30M |
| $100.00M | −$37.00M | $0 | $63.00M |
| $500.00M | −$185.00M | $0 | $315.00M |
| $1.00B | −$370.00M | $0 | $630.00M |
Federal figure is the total owed at the top bracket. At claim time only 24% is withheld; the rest is due when you file. Smaller prizes can fall into lower brackets, so the real federal bill may be less.
Winning with a ticket from another state
The state that sold the ticket decides whether a nonresident pays its tax. California, for example, does not tax California Lottery prizes at all. Other states may tax nonresident winners and withhold state tax at claim time. Check before you buy if you are traveling.
Federal tax still applies
Prizes over $5,000 have 24% federal tax withheld, and jackpot winners owe up to 37% in total federal tax.
The Permanent Fund Dividend
Alaska's yearly Permanent Fund Dividend is separate from any lottery prize and is taxable by the IRS. A large prize does not change your eligibility for the dividend, but check the current eligibility rules if you plan to move.
Common questions
Is there a lottery in Alaska?
No. Alaska does not run a state lottery.
Do Alaskans pay state tax on lottery winnings?
Alaska has no personal income tax. The state that sold the ticket may still tax a nonresident winner.