How much tax you pay on a lottery prize depends almost entirely on one thing you chose before buying the ticket: the state. Eight states withhold nothing, New York takes up to 10.9% plus New York City's cut, and everyone pays the same federal layer on top. Here is the complete state-by-state withholding table for 2026, how the federal side stacks, and the planning facts that matter before — not after — you win.
The federal layer (same everywhere)
Two different federal numbers get confused constantly:
- 24% withholding — what the lottery automatically sends to the IRS on any prize over $5,000.
- Up to 37% actual tax — a large prize pushes you into the top bracket, so you'll typically owe the difference between 24% withheld and ~37% owed at filing time. Budget for the gap; it surprises winners every April.
Our full federal + state breakdown walks a $500M jackpot through the whole stack, and there are worked examples for $1M, $1B, and $1.5B wins.
State lottery tax withholding, all states (2026)
| State | Withholding | State | Withholding |
|---|---|---|---|
| Arizona | 4.8% | Nebraska | 5% |
| Arkansas | 5.9% | New Hampshire | 0% |
| California | 0% | New Jersey | 8% |
| Colorado | 4% | New Mexico | 5.9% |
| Connecticut | 6.99% | New York | 10.9% |
| Delaware | 6.6% | North Carolina | 4.5% |
| DC | 10.75% | North Dakota | 2.9% |
| Florida | 0% | Ohio | 3.99% |
| Georgia | 5.49% | Oklahoma | 4.75% |
| Idaho | 5.8% | Oregon | 9.9% |
| Illinois | 4.95% | Pennsylvania | 3.07% |
| Indiana | 3.15% | Rhode Island | 5.99% |
| Iowa | 5% | South Carolina | 6.4% |
| Kansas | 5% | South Dakota | 0% |
| Kentucky | 4% | Tennessee | 0% |
| Louisiana | 4.25% | Texas | 0% |
| Maine | 7.15% | Vermont | 6% |
| Maryland | 8.95% | Virginia | 4% |
| Massachusetts | 5% | Washington | 0% |
| Michigan | 4.25% | West Virginia | 6.5% |
| Minnesota | 7.25% | Wisconsin | 7.65% |
| Mississippi | 5% | Wyoming | 0% |
| Missouri | 4% | ||
| Montana | 6.75% |
Rates are the state's lottery-prize withholding as tracked in our state data; local taxes (like New York City's ~3.9%) can add more, and your final state liability follows your return, not just withholding. Verify with your state lottery or a tax professional.
The eight no-tax states
California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming withhold nothing on lottery prizes. California deserves a special note: it has a state income tax but specifically exempts California Lottery winnings. On a $500 million jackpot, the difference between winning in Texas and New York is tens of millions of dollars — the arithmetic behind our best-states ranking.
Three facts that change outcomes
- The tax follows the ticket, mostly. Prizes are taxed by the state where the ticket was bought (that state's withholding applies), and your home state can tax you as a resident too — with credits usually preventing true double taxation. Living in a no-tax state and buying in a taxed one doesn't dodge the source state's cut.
- New York is the ceiling — up to 10.9% state plus ~3.9% for NYC residents, the math of our NYC worked examples.
- Non-residents and visa holders face a different federal rate — a flat 30% withholding instead of 24%, covered in taxes for non-residents.
Bottom line
Federal is the same everywhere: 24% withheld, up to 37% owed. The state layer runs from 0% in eight states to 10.9% in New York, set by where the ticket was sold and where you live. If a big win ever makes this table personally relevant, the sequence is lawyer → tax professional → claim, in that order. Check tonight's numbers for your state on our results homepage.
This is general information, not tax advice. Rates change with state legislation — verify before acting. Play responsibly — 1-800-GAMBLER.