Calculate your actual lottery winnings after federal and state taxes
Net = Winnings - Federal - State - LocalEnter your lottery prize and location
Your after-tax lottery 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%
Quick-start with common scenarios
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.
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.
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.
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.
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).
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.