See how much of your lottery winnings you keep after federal and state taxes — by state, lump sum or annuity.
Lottery winnings are taxed as ordinary income. The IRS withholds 24% federally upfront, but large jackpots push you into the top 37% federal bracket, so you typically owe more at filing. On top of that, most states tax winnings at their income tax rate. A few states — including California, Florida, Texas, and other no-income-tax states — do not tax lottery winnings.
It varies. Eight states have no income tax (TX, FL, WA, etc.). California and Pennsylvania specifically exempt state lottery winnings from state tax. New York taxes at up to 10.9% (plus NYC adds more). Most other states tax winnings at their regular income rate. Use the calculator to see your state.
The lump sum (cash option) is about 60% of the advertised jackpot but gives you the money now. The annuity pays the full jackpot over ~30 years. Tax-wise, both are taxed as income when received; the annuity spreads the tax over decades but locks you in. Most winners take the lump sum.
After 24% federal withholding (and likely 37% top-bracket tax owed at filing) plus state tax, a $1 million prize nets roughly $580,000-$650,000 depending on your state. The calculator shows your exact estimate.
Estimates for 2026 using IRS supplemental wage rules and FICA. Withholding shown is not final tax — actual liability is settled at filing. Not tax advice.
Tax calculations are estimates for educational and informational purposes only. This site does not provide tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. Data sourced from IRS publications and official state tax authority websites.
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