Washington lottery taxes: federal tax only
Washington State does not tax wages or lottery winnings, so a Powerball or Mega Millions jackpot claimed in Washington is taxed only by the IRS.
Calculate a Washington jackpot
Take-home pay on a lump-sum prize in Washington
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 about the capital gains tax?
Washington has a tax on some long-term capital gains. It does not apply to the lottery prize itself. It may matter later, if you invest your winnings and sell assets at a large gain. A financial planner can help you plan around it.
What is withheld when you claim
Prizes over $5,000 have 24% federal tax withheld. Jackpot winners owe up to 37% in total, so expect a further payment when you file.
Oregon and Idaho neighbors
If you live in Oregon or Idaho and buy your ticket in Washington, Washington will not tax the prize, but your home state will. If you live in Washington and buy across the border, Oregon or Idaho may tax the prize as a nonresident.
Common questions
Does Washington tax lottery winnings?
No. Washington has no personal income tax.
How much do I keep from a $100 million cash prize in Washington?
About $63 million at the top federal rate of 37%.