Winning the lottery is a dream, but the tax bill is a reality check. While the Federal Government takes a standard cut, State Taxes vary wildly—from 0% in places like California and Florida to nearly 9% in New York.
This calculator estimates your final “Take-Home” amount based on your residency.
Lottery Tax by State
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Understanding the Deductions
If you win a prize over $5,000, the lottery commission automatically withholds money before writing the check.
- Federal Withholding (24%): This is mandatory. Note that you will likely owe more (up to 37%) when you file your annual tax return due to being in the highest income bracket.
- State Tax (0% – 10.9%): This depends entirely on where you bought the ticket.
The “Best” and “Worst” States to Win
- Best (0% State Tax): California, Florida, Texas, Washington, Tennessee, South Dakota, New Hampshire, Wyoming.
- Worst (High Tax): New York (~8.82%), New Jersey (8%), Oregon (9.9%), Minnesota (7.25%).
Frequently Asked Questions (FAQ)
Do I have to pay tax if I don’t live in the US?
Yes. Non-residents are usually subject to a flat 30% Federal withholding rate, plus any applicable state taxes. You may also owe taxes in your home country.