Florida lottery taxes: federal tax only
Florida is a popular place to win because the state has no personal income tax. Powerball, Mega Millions and Florida Lotto prizes are taxed only by the federal government.
Take-home pay on a lump-sum prize in Florida
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.
What is withheld when you claim
Prizes over $5,000 have 24% withheld for federal tax. On a jackpot you will owe more when you file, since the top federal rate is 37%. Treat the 24% as a deposit, not the whole bill.
Lump sum or annuity in Florida
With no state tax, the decision comes down to federal brackets, your age, and how disciplined you will be with a large sum. The annuity pays 30 yearly installments that grow 5% each year. The lump sum is smaller but arrives at once. Compare both in the calculator.
Keeping your name private
Florida law gives winners of large prizes a temporary period during which their name is not released. After that period the information can become public. Ask the Florida Lottery about the current rules before you claim.
Retiring to Florida with an annuity
If you won while living in a taxing state and later move to Florida, your former state may still tax annuity payments from a prize won while you lived there. Check the rules of the state you are leaving.
Common questions
Does Florida tax lottery winnings?
No. Florida has no personal income tax. You pay federal tax only.
How much do I keep from a $1 million prize in Florida?
Around $630,000 if the whole prize is taxed at 37%. A single $1 million prize with no other income may be taxed at a lower average rate.
Do I get a tax form?
Yes. The lottery issues Form W-2G showing the prize and the federal tax withheld.