Lottery After-Tax Calculator
Calculate your actual lottery winnings after federal and state taxes
Formula:
Net = Winnings - Federal - State - LocalWinnings Details
Enter your lottery prize and location
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Tax Breakdown
Your after-tax lottery winnings
You Take Home
$521,000
52.1% of winnings
| Gross Winnings | $1,000,000 |
| Federal Tax (37%) | -$370,000 |
| State Tax (10.90%) | -$109,000 |
| Net Payout | $521,000 |
Total Tax
$479,000
Effective Rate
47.90%
Tax Paid
47.9%
Keep Rate
52.1%
Tax Scenarios
Quick-start with common scenarios
Quick Answer
For a $1M lottery win: Federal tax (37%) = $370,000. State tax varies by location (0% to 13%+). For example, in Texas (no state tax), you'd net ~$630,000. In New York (10.9% state + 3.88% NYC), you'd net ~$482,200. Always expect to pay at least 37% federal on large wins.
Key Facts
- Federal tax: 24% withheld, but top bracket is 37% (you'll owe more)
- 9 states have no income tax: AK, FL, NV, NH, SD, TN, TX, WA, WY
- California and Delaware don't tax lottery winnings specifically
- New York has the highest combined rate: 10.9% state + up to 3.88% NYC
- Winnings over $5,000 have 24% federal automatically withheld
- You must report ALL gambling winnings, even if no tax withheld
- Non-residents may face different (often higher) withholding rates
- Lottery winnings are taxed as ordinary income, not capital gains
FAQ
How much tax do I pay on lottery winnings?
Federal tax on lottery is 24% withheld at the time of winning, but the top tax bracket is 37%. So for large wins, you'll owe additional tax when you file. State taxes vary from 0% to over 13% depending on where you live and where you bought the ticket.
Which states have no lottery tax?
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Additionally, California and Delaware don't tax lottery winnings specifically, even though they have income tax.
Do I pay tax on lottery winnings in the state where I bought the ticket?
Generally, you pay state tax where you live, not where you bought the ticket. However, some states require withholding from non-residents who win. If you live in a tax-free state but bought a ticket in a state that taxes non-resident winners, you may owe that state's tax.
Is lottery tax different from regular income tax?
No, lottery winnings are taxed as ordinary income. They're added to your other income for the year and taxed at your marginal rate. Large lottery wins will almost always push you into the highest tax bracket (37% federal).
Can I deduct gambling losses against lottery winnings?
Yes, if you itemize deductions. You can deduct gambling losses up to the amount of your gambling winnings. Keep detailed records of all gambling activity. This can reduce your taxable lottery income if you have documented losses from other gambling.
How this works
Calculations follow the published mathematics of the game — combinatorics for cards, probability theory for dice, and expected-value accounting for wagers. Results are verified against independent references (primarily Wizard of Odds). No calculation here is an opinion or recommendation; it is arithmetic applied to the rules of the game.
What this tool can’t do
When to consult a professional
This tool computes probability and expected value. It is not a betting system and cannot predict the outcome of any individual wager. If gambling is causing problems for you or someone you know, call the National Problem Gambling Helpline at 1-800-GAMBLER.
Sources
- [1]Wizard of Odds — Michael Shackleford, ASAIndustrywizardofodds.comAccessed Apr 21, 2026
Actuary; widely cited casino-game probability reference. Used for house-edge and EV verification.
- [2]National Council on Problem GamblingOfficial sourcencpgambling.orgAccessed Apr 21, 2026
Responsible-gambling guidance and 1-800-GAMBLER helpline.
Joseph OrdunaFounder & Software Engineer
Full-stack software engineer specializing in embedded systems, web architecture, and AI/ML. Founder of Practical Web Tools. Built the gesture-controlled drone IP acquired by KD Interactive (Aura Drone, sold on Amazon).