Wyoming lottery taxes: federal tax only
Wyoming has no personal income tax and has sold Powerball and Mega Millions tickets through WyoLotto since 2014. A jackpot claimed in Wyoming is taxed by the IRS only.
Take-home pay on a lump-sum prize in Wyoming
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 is withheld when you claim
Prizes over $5,000 have 24% federal tax withheld. The top federal rate is 37%, so jackpot winners owe more when they file.
A newer lottery state
Wyoming was one of the last states to join the big multi-state games. Before 2014, Wyoming residents had to travel to neighboring states to play, and those states could tax their winnings. Today a Wyoming resident with a Wyoming ticket pays no state tax at all.
Neighbors who buy in Wyoming
Colorado, Utah, Idaho, Montana, Nebraska and South Dakota border Wyoming. Utah has no lottery, so some Utah residents buy tickets in Wyoming or Idaho. Utah taxes residents on their income, so a Utah resident's prize can still be taxed by Utah.
Common questions
Does Wyoming tax lottery winnings?
No. Wyoming has no personal income tax.
Can I play Powerball in Wyoming?
Yes. WyoLotto sells Powerball and Mega Millions.