Louisiana lottery taxes: a flat 3%
Rate checked on November 5, 2026 against the sources listed at the end of this page.
Louisiana's 2024 tax reform (Act 11 of the 2024 Third Extraordinary Session) repealed the graduated 1.85% / 3.5% / 4.25% brackets and replaced them with a flat 3% for tax years beginning on or after January 1, 2025. We found no change for 2026.
That makes Louisiana one of the cheaper taxing states for a jackpot winner: the state share is 3% of the prize.
Take-home pay on a lump-sum prize in Louisiana
The table applies the top federal rate of 37% plus 3% Louisiana 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 | −$30,000 | $600,000 |
| $10.00M | −$3.70M | −$300,000 | $6.00M |
| $100.00M | −$37.00M | −$3.00M | $60.00M |
| $500.00M | −$185.00M | −$15.00M | $300.00M |
| $1.00B | −$370.00M | −$30.00M | $600.00M |
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
The Louisiana Lottery's FAQ says it withholds 3% state tax from prizes of $5,000 or more, and 24% federal tax from each prize over $5,000. Because the rate is flat, the 3% withheld is normally the whole Louisiana tax on a big prize. Older Lottery material, such as a 2024 press kit, still says 4.25%, the old top rate; that no longer applies.
Nonresidents: check with the state
The 3% withholding is described without any residency rule, and Louisiana's lottery law makes prizes subject to state income tax. We could not open the statute to confirm the nonresident wording, so residents of Texas, Arkansas and Mississippi who win with a Louisiana ticket should check with the Louisiana Lottery or the Department of Revenue. Texans should note that Texas has no income tax, so Louisiana tax would not be offset at home. See our Texas and Arkansas guides and ticket state vs home state.
Local taxes
Louisiana parishes and cities do not levy an individual income tax.
Common questions
What is Louisiana's tax rate on lottery winnings in 2026?
3%, Louisiana's flat individual income tax rate since 2025.
How much does the Louisiana Lottery withhold?
3% state tax from prizes of $5,000 or more, plus 24% federal from each prize over $5,000.
How much of a $10 million cash prize would I keep in Louisiana?
About $6.00 million after 37% federal and 3% state tax.
Sources
- IRS Topic 419: Gambling income and losses
- IRS Instructions for Forms W-2G and 5754
- Louisiana Department of Revenue: RIB 25-012, individual income tax reform (flat 3%, PDF)
- Louisiana Department of Revenue: emergency rule on withholding tables at the flat 3% rate (PDF)
- Louisiana Lottery: Frequently asked questions (3% state withholding from $5,000)
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