US Lottery Taxes by State
Find out how state taxes can affect lottery winnings, and understand the difference between withholding and your final tax bill.
Tax held back when the prize is paid.
Depends on the applicable rules and your circumstances.
Where you buy and where you live can matter.
Find a state
Compare state lottery tax treatment and state withholding. These figures exclude federal tax. Select a state row to read its notes.
43 published states
AlabamaView state notes ↓Resident lottery/gambling income taxableNo in-state Mega Millions lottery paymentChecked5 October 2026
Alabama tax notes
Alabama lists lottery and gambling winnings as taxable income. Alabama residents should check the treatment of winnings from tickets bought elsewhere; no Alabama Mega Millions payout withholding rate applies. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
AlaskaView state notes ↓No state personal income tax on lottery winnings0% state income-tax withholdingChecked5 October 2026
Alaska tax notes
Alaska does not currently impose personal income tax. Mega Millions is not sold by a state lottery in Alaska. Federal tax still applies. Another state may tax winnings purchased there or received by its residents. These entries concern individuals; business/entity treatment may differ.
ArkansasView state notes ↓Taxable under state income-tax rules3.7% on prizes over $5,000Checked5 October 2026
Arkansas tax notes
The Arkansas Scholarship Lottery states that it withholds 3.7% state tax from prizes above $5,000. This is the payout withholding figure, not a promise that final tax is exactly 3.7% of the prize. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
CaliforniaView state notes ↓California Lottery prizes exempt0% — California Lottery prizesChecked5 October 2026
California tax notes
California does not tax California Lottery winnings, including its Powerball and Mega Millions prizes. California Lottery prizes have no state or local withholding. Do not assume this exemption covers another state’s lottery. Federal tax remains separate; check residency and any other state’s rules.
ColoradoView state notes ↓Taxable under state income-tax rules4% on prizes over $5,000Checked5 October 2026
Colorado tax notes
The Colorado Lottery lists 4% state withholding on qualifying prizes over $5,000. It says Colorado withholding applies regardless of where a winner lives. Final tax depends on the return; a withholding rate is not necessarily the current final income-tax rate. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
ConnecticutView state notes ↓Taxable under state income-tax rules6.99% on reportable CT Lottery winningsChecked5 October 2026
Connecticut tax notes
Connecticut withholds 6.99% from reportable Connecticut Lottery winnings paid to residents or nonresidents, whether or not federal tax is withheld. Reporting thresholds and special circumstances need checking for the payment year. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
District of ColumbiaView state notes ↓District income tax; residency mattersDistrict withholding on resident prizes over $5,000Checked5 October 2026
District of Columbia tax notes
DC Lottery guidance separates DC residents from non-DC residents. Resident prizes over $5,000 have District withholding under applicable law; the law bases withholding on the highest applicable tax rate. Nonresident treatment must be assessed separately. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
FloridaView state notes ↓Florida Lottery prizes exempt0% — Florida state taxChecked5 October 2026
Florida tax notes
Florida law exempts prizes paid under its lottery law from state and local tax. Federal tax remains separate. If you live in another state, check that state’s treatment of your winnings too. Buying a ticket in Florida does not settle your home-state tax position.
GeorgiaView state notes ↓Taxable under state income-tax rules4.99% on prizes over $5,000Checked5 October 2026
Georgia tax notes
The June 2026 Georgia employer tax guide specifies 4.99% state withholding on Georgia Lottery winnings above $5,000. This is a payment towards final tax. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
IdahoView state notes ↓Taxable under state income-tax rules5.3% listed by Idaho LotteryChecked5 October 2026
Idaho tax notes
The current Idaho Lottery claim page lists 5.3% state withholding. Older winner guides show higher historical rates; use current claim guidance and confirm the applicable prize threshold with the Lottery for a specific payment. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
IllinoisView state notes ↓Taxable under state income-tax rules4.95% on lottery payments of $1,000 or moreChecked5 October 2026
Illinois tax notes
Illinois requires state withholding on single Illinois Lottery payments of $1,000 or more for residents and nonresidents. The 2026 state withholding rate is 4.95%. The payment threshold is not reduced merely because multiple ticket owners each receive a smaller share. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
IowaView state notes ↓Taxable under state income-tax rules3.8% on prizes over $600Checked5 October 2026
Iowa tax notes
The current Iowa Lottery claiming FAQ states that prizes above $600 have 3.8% state withholding. Older jackpot articles still show 5%; those older figures should not be used for current payout estimates. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
KansasView state notes ↓Taxable under state income-tax rules5% on qualifying prizes over $5,000Checked5 October 2026
Kansas tax notes
Kansas Lottery guidance lists 5% state withholding on qualifying larger prizes. Kansas law treats lottery prizes as Kansas-source income and requires state withholding when federal withholding applies. Final state tax is assessed separately. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
KentuckyView state notes ↓Taxable under state income-tax rulesRequired on prizes over $5,000Checked5 October 2026
Kentucky tax notes
Kentucky Lottery states that it withholds state tax from prizes over $5,000. Kentucky’s ordinary individual tax rate for 2026 is 3.5%; withholding and the final taxable-income calculation should be checked separately. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
LouisianaView state notes ↓Taxable under state income-tax rules3% on prizes of $5,000 or moreChecked5 October 2026
Louisiana tax notes
Louisiana Lottery guidance specifies state withholding at 3% for prizes of $5,000 or more. Note the state threshold includes $5,000, while regular federal lottery withholding generally applies when net proceeds exceed $5,000. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
MaineView state notes ↓Taxable under state income-tax rules7.15% on prizes over $5,000Checked5 October 2026
Maine tax notes
Maine Lottery guidance specifies 7.15% state withholding on prizes above $5,000. This advance payment may not cover the entire state tax liability. Foreign-person treatment and lower reporting thresholds should be checked separately. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
MarylandView state notes ↓State and local income-tax rules apply9.50% residents / 8.75% nonresidents, over $5,000Checked5 October 2026
Maryland tax notes
The 2026 Maryland employer guide lists withholding of 9.50% for Maryland residents and 8.75% for nonresidents on lottery/gambling winnings over $5,000. These are combined Maryland withholding figures; do not add another county rate to the withholding figure automatically. Final state and local tax depends on the return. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
MassachusettsView state notes ↓Taxable; high-income surtax may apply5% on prizes over $600Checked5 October 2026
Massachusetts tax notes
Massachusetts Lottery states that 5% is withheld on prizes above $600. Final tax can include the additional 4% surtax on the portion of taxable income above $1,107,750 for 2026. That is an income threshold, not a blanket 9% deduction from every prize. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
MichiganView state notes ↓Taxable under state income-tax rules4.25% on qualifying lottery paymentsChecked5 October 2026
Michigan tax notes
Michigan’s 2026 withholding rate is 4.25%. Lottery prize withholding/reporting depends on the claim and recipient circumstances; the foreign-person rules differ. Local income-tax treatment, where applicable, is separate. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
MinnesotaView state notes ↓Taxable under state income-tax rules7.25% on prizes over $5,000Checked5 October 2026
Minnesota tax notes
Minnesota Lottery lists state withholding of 7.25% on prizes above $5,000 for residents and resident aliens. That percentage is withholding, not necessarily the final Minnesota tax on a large jackpot. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
MississippiView state notes ↓Taxable under state income-tax rules3% state withholding on qualifying prizesChecked5 October 2026
Mississippi tax notes
Mississippi Lottery tax guidance identifies a 3% state withholding rate. Apply the rules for the specific lottery prize and recipient. Do not assume separate casino gaming guidance or ordinary-income headline rates establish the final treatment of every lottery payment. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
MissouriView state notes ↓Taxable under state income-tax rules4% on prizes over $600Checked5 October 2026
Missouri tax notes
Missouri Lottery guidance lists 4% state withholding for prizes of $600.01 or more. State income tax on the return can differ from this withholding amount. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
MontanaView state notes ↓Taxable under state income-tax rules5.9% on prizes over $5,000Checked5 October 2026
Montana tax notes
Montana Lottery currently lists state withholding of 5.9% for qualifying prizes above $5,000 when a US citizen supplies a Social Security number. Other recipient circumstances can change withholding requirements; final tax must be assessed separately. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
NebraskaView state notes ↓Taxable under state income-tax rules3.5% where federal withholding applies (2026)Checked5 October 2026
Nebraska tax notes
Nebraska’s 2026 Circular EN specifies 3.5% withholding on Nebraska-source gambling winnings subject to federal income-tax withholding. Older lottery promotions and articles showing 5% concern earlier periods. Check the year in which the payment is made. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
NevadaView state notes ↓No state personal income tax on lottery winnings0% state income-tax withholdingChecked5 October 2026
Nevada tax notes
Nevada does not impose individual income tax. Mega Millions tickets are not sold by a Nevada state lottery; a ticket bought in another state can be subject to that state’s rules. Federal tax still applies. Another state may tax winnings purchased there or received by its residents. These entries concern individuals; business/entity treatment may differ.
New HampshireView state notes ↓No state personal income tax on lottery winnings0% state income-tax withholdingChecked5 October 2026
New Hampshire tax notes
New Hampshire’s former gambling-winnings tax was repealed for winnings received on or after 23 May 2011. Federal tax still applies. Another state may tax winnings purchased there or received by its residents. These entries concern individuals; business/entity treatment may differ.
New JerseyView state notes ↓NJ Lottery prizes over $10,000 taxable5% over $10,000 to $500,000; 8% above $500,000Checked5 October 2026
New Jersey tax notes
New Jersey Lottery withholding is 5% for prizes above $10,000 up to $500,000 and 8% above $500,000. New Jersey Lottery winnings of $10,000 or less have different state tax treatment. Where a larger ticket prize is shared, do not assume each share below $10,000 is exempt. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
New MexicoView state notes ↓Taxable under state income-tax rules6% on prizes over $5,000Checked5 October 2026
New Mexico tax notes
New Mexico Lottery currently lists 6% state withholding from prizes above $5,000. This is the stated payout withholding; the final income-tax result may differ. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
North CarolinaView state notes ↓Taxable under state income-tax rules3.99% on prizes of $600 or more (2026)Checked5 October 2026
North Carolina tax notes
North Carolina requires state withholding on Lottery Commission winnings of $600 or more. The 2026 rate is 3.99%; prior-year rates must not be reused. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
North DakotaView state notes ↓Taxable under state income-tax rules2.5% on prizes over $5,000Checked5 October 2026
North Dakota tax notes
North Dakota Lottery specifies state withholding at 2.5% on winnings above $5,000. The actual final tax depends on the income-tax return. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
OhioView state notes ↓Taxable under state income-tax rules2.75% on federally reportable lottery awards (2026)Checked5 October 2026
Ohio tax notes
Ohio law sets lottery withholding at 2.75% for calendar year 2026 and later on prize payments that meet the applicable federal reporting requirement. The threshold follows reporting rules; do not automatically substitute the federal $5,000 withholding threshold. Municipal treatment needs separate checking. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
OregonView state notes ↓Taxable under state income-tax rules8% on prizes of $1,500 or moreChecked5 October 2026
Oregon tax notes
Oregon Lottery withholds 8% state tax from prizes of $1,500 or more. Ordinary non-video lottery prizes above $5,000 also have federal withholding. The state percentage is an advance payment rather than a universal final tax rate. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
PennsylvaniaView state notes ↓Cash prizes taxable; noncash exceptions3.07% when federal withholding is requiredChecked5 October 2026
Pennsylvania tax notes
Pennsylvania Lottery cash prizes are taxable at Pennsylvania’s 3.07% personal income-tax rate. State withholding applies when federal withholding is required, generally to lottery cash prizes above $5,000. Noncash PA Lottery prizes have different treatment. Residents’ out-of-state winnings also require checking. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
South CarolinaView state notes ↓Taxable under state income-tax rulesCurrent maximum individual rate on qualifying prizesChecked5 October 2026
South Carolina tax notes
South Carolina law links qualifying prize withholding to the maximum individual tax rate. For 2026 the income-tax structure changed, with a top rate of 5.21%. Final tax uses the new state rules and income-adjusted deduction; older 6% summaries should not be treated as current final-tax guidance. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
South DakotaView state notes ↓No state personal income tax on lottery winnings0% state income-tax withholdingChecked5 October 2026
South Dakota tax notes
South Dakota does not impose a state personal income tax. Federal tax still applies. Another state may tax winnings purchased there or received by its residents. These entries concern individuals; business/entity treatment may differ.
TennesseeView state notes ↓No state personal income tax on lottery winnings0% state income-tax withholdingChecked5 October 2026
Tennessee tax notes
Tennessee Lottery states that Tennessee does not tax lottery winnings. Debt offsets are separate from income-tax withholding. Federal tax still applies. Another state may tax winnings purchased there or received by its residents. These entries concern individuals; business/entity treatment may differ.
TexasView state notes ↓No state personal income tax on lottery winnings0% state income-tax withholdingChecked5 October 2026
Texas tax notes
Texas does not impose individual state income tax. This does not remove federal tax on lottery winnings. Federal tax still applies. Another state may tax winnings purchased there or received by its residents. These entries concern individuals; business/entity treatment may differ.
VermontView state notes ↓Taxable under state income-tax rulesAt least 6% on prizes over $5,000Checked5 October 2026
Vermont tax notes
Vermont Lottery states that winnings above $5,000 have state withholding of at least 6%. Backup withholding can also apply to smaller qualifying prizes if a correct taxpayer identification number is not supplied. Final Vermont tax is calculated separately. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
VirginiaView state notes ↓Taxable under state income-tax rules4% on prizes over $5,000Checked5 October 2026
Virginia tax notes
Virginia Lottery specifies 4% state withholding on prizes above $5,000. This is an advance tax payment; the final Virginia tax can differ. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
WashingtonView state notes ↓No individual income tax currently (2026)0% state individual income-tax withholding currentlyChecked5 October 2026
Washington tax notes
Washington has no individual income tax currently. The Department of Revenue says a new 9.9% income tax begins on 1 January 2028 for annual adjusted gross income above $1 million. Future large-prize treatment must be reviewed before using this 2026 summary for later payments. Federal and other-state tax remain separate.
West VirginiaView state notes ↓Taxable under state income-tax rules6.5% on lottery payments subject to withholdingChecked5 October 2026
West Virginia tax notes
West Virginia’s lottery withholding statute specifies 6.5% on qualifying lump-sum, annuity or installment payments. This statutory withholding percentage should not be confused with the lower income-tax rates introduced in recent years. Final tax is reconciled on the return. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
WisconsinView state notes ↓Taxable under state income-tax rules7.65% on lottery prizes of $2,000 or moreChecked5 October 2026
Wisconsin tax notes
Wisconsin’s gambling-income publication specifies state lottery withholding at 7.65% for prizes of $2,000 or more. Final individual tax uses applicable income brackets, so withholding is not the same as the effective final tax on every prize. Federal tax is separate. Withholding is credited towards tax and may differ from final liability. Check the ticket-purchase state, residency, local taxes and any credits before using a calculator rate.
WyomingView state notes ↓No state personal income tax on lottery winnings0% state income-tax withholdingChecked5 October 2026
Wyoming tax notes
Wyoming does not impose individual income tax. Federal tax still applies. Another state may tax winnings purchased there or received by its residents. These entries concern individuals; business/entity treatment may differ.
No published state entries to display yet.
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Once you have checked your applicable tax assumptions, explore how they affect the lump-sum prize.
Mega Millions cash payout calculatorState lottery tax questions
Does state withholding equal the final state tax?
Not necessarily. Withholding is tax paid in advance. Final liability can depend on income, deductions, residency and state rules.
Are federal taxes included in this table?
No. The table focuses on state tax treatment. Federal tax is separate.
What if I buy a ticket outside my home state?
Check both the purchase state and your state of residence. Credits or exemptions may apply; adding the two headline rates together can give a misleading result.
How current is the information?
Each checked entry displays a review date. Entries need periodic review and updates when rules change. A review date is not a guarantee that no changes have occurred since.