Nevada and the lottery: no state lottery, no state income tax
Nevada's constitution does not allow a state lottery, so you cannot buy Powerball or Mega Millions tickets in Nevada. Many Nevadans buy tickets across the border instead. Because Nevada has no personal income tax, the only question is whether the state that sold the ticket taxes the prize.
Take-home pay on a lump-sum prize in Nevada
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.
Tickets bought in California
California does not tax California Lottery prizes, for residents or nonresidents. A Nevada resident who wins with a California ticket pays federal tax only. This is why stores on the California side of the state line near Primm draw long lines when jackpots are high.
Tickets bought in Arizona, Oregon or Idaho
Other states may tax nonresidents on lottery prizes won from tickets bought there, and may withhold state tax when you claim. Check the rules of the state that sold the ticket. Nevada itself will not add any tax.
What is withheld when you claim
Wherever you buy, prizes over $5,000 have 24% federal tax withheld. Jackpot winners owe up to 37% in total federal tax.
Common questions
Can you buy Powerball in Nevada?
No. Nevada has no state lottery. Nevadans often buy tickets in California or Arizona.
Does a Nevada resident pay state tax on a California lottery prize?
No. Nevada has no income tax and California does not tax California Lottery prizes, so only federal tax applies.