Georgia lottery taxes: 4.99% for 2026
Rate checked on November 3, 2026 against the sources listed at the end of this page.
Georgia has been cutting its flat income tax rate step by step. On May 11, 2026 the governor signed HB 463, which lowers the rate from 5.19% to 4.99% beginning January 1, 2026. Lottery winnings are income, so a Georgia jackpot claimed in 2026 is taxed at 4.99%.
Take-home pay on a lump-sum prize in Georgia
The table applies the top federal rate of 37% plus 4.99% Georgia 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 | −$49,900 | $580,100 |
| $10.00M | −$3.70M | −$499,000 | $5.80M |
| $100.00M | −$37.00M | −$4.99M | $58.01M |
| $500.00M | −$185.00M | −$24.95M | $290.05M |
| $1.00B | −$370.00M | −$49.90M | $580.10M |
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
Georgia's withholding rule for Georgia Lottery Corporation prizes says proceeds of more than $5,000 are subject to withholding equal to the maximum marginal rate under Georgia's income tax law, multiplied by the whole prize. The rule covers Georgia residents and nonresidents alike.
Because the rate changed during 2026, ask the Georgia Lottery what rate it applied to your prize. If more was withheld than you owe, the difference comes back when you file your Georgia return; if less, you pay the balance.
A rate that keeps moving
Georgia's rate was 5.19% for 2025 and is 4.99% for 2026. For an annuity winner, each payment is taxed at the rate for the year it is paid, so later payments may be taxed at a different rate. Our calculator uses the 2026 rate.
Nonresidents and neighbors
Georgia borders Florida and Tennessee, which do not tax lottery winnings, plus Alabama, which has no state lottery. Residents of those states who win with a Georgia ticket over $5,000 will have Georgia tax withheld under the rule above. Alabamians cannot buy tickets at home, so Georgia is a common choice. See ticket state vs home state, our Florida and Tennessee guides.
Federal tax on top
Federal withholding is 24% on prizes over $5,000. A jackpot is taxed at up to 37% federally, so set aside the difference the day the money arrives.
Common questions
What is Georgia's tax rate on lottery winnings in 2026?
4.99%, after HB 463 lowered the rate from 5.19% beginning January 1, 2026.
Does Georgia withhold tax from nonresident winners?
Yes. Georgia's rule requires withholding on Georgia Lottery prizes over $5,000 for residents and nonresidents.
How much of a $10 million cash prize would I keep in Georgia?
About $5.80 million after 37% federal and 4.99% state tax.