Massachusetts lottery taxes: 5%, then 9% above $1.1 million
Rate checked on November 3, 2026 against the sources listed at the end of this page.
Massachusetts has a flat 5% income tax, but it also has a 4% surtax on very high incomes. For 2026 the surtax applies to income over $1,107,750. A lottery jackpot easily crosses that line, so in practice most of a big Massachusetts prize is taxed at 9%.
Calculate a Massachusetts jackpot
Take-home pay on a lump-sum prize in Massachusetts
The table applies the top federal rate of 37% plus 9% Massachusetts tax (5% income tax plus the 4% surtax on income over $1,107,750). 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 | −$90,000 | $540,000 |
| $10.00M | −$3.70M | −$900,000 | $5.40M |
| $100.00M | −$37.00M | −$9.00M | $54.00M |
| $500.00M | −$185.00M | −$45.00M | $270.00M |
| $1.00B | −$370.00M | −$90.00M | $540.00M |
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.
How the surtax changes the math
For a prize of a few hundred thousand dollars, Massachusetts tax is 5%. For a multi-million-dollar prize, everything above $1,107,750 of income (2026 threshold) is taxed at 9%. Our table and calculator use 9% for the whole prize, which slightly overstates the tax on smaller prizes, such as the $1 million row below.
The surtax threshold is adjusted each year: it was $1,083,150 for 2025. Annuity winners will see each year's payment measured against that year's threshold.
Massachusetts and other lotteries
The Department of Revenue says residents must include winnings from the Massachusetts state lottery and from non-Massachusetts lotteries in Massachusetts gross income. Buying tickets in New Hampshire, which has no income tax on residents' wages and does not tax lottery prizes, does not help a Massachusetts resident: the prize is still taxed in Massachusetts.
Massachusetts also says lottery losses cannot be deducted: residents report net winnings (winnings minus the cost of the winning tickets).
Nonresidents
Nonresidents are taxed on Massachusetts-source lottery winnings, and Powerball or Mega Millions tickets count as Massachusetts-source when they were bought in Massachusetts. Rhode Islanders, Connecticut residents, New Yorkers and New Hampshire residents who buy in Massachusetts should expect Massachusetts tax. See our New Hampshire guide and ticket state vs home state.
Withholding
The Massachusetts Lottery takes statutory state and federal withholding before paying a prize. Federal withholding is 24% on prizes over $5,000; ask the Lottery what state tax it will withhold, and expect the surtax to be due when you file if it was not withheld.
Common questions
What is the Massachusetts tax on a lottery jackpot?
5% on income up to $1,107,750 in 2026, and 9% (5% plus the 4% surtax) on income above it.
Can I avoid Massachusetts tax by buying in New Hampshire?
No. Massachusetts residents must include winnings from other states' lotteries in Massachusetts income.
How much of a $100 million cash prize would I keep in Massachusetts?
About $54 million after 37% federal and 9% state tax.