Lottery Tax Calculator
Calculate taxes on lottery winnings for lump sum and annuity payments with federal and state tax breakdowns
Calculate Lottery Taxes
The total advertised prize value if paid as annuity
Typically around 52% of the advertised prize
Your tax filing status affects federal tax brackets
State tax rates vary significantly across states
Lump Sum Tax Calculation
Tax Analysis
Example: $1,000,000 Lottery Win
Lump Sum Option (52%)
Advertised Prize: $1,000,000
Lump Sum (52%): $520,000
Federal Withholding (24%): -$124,800
Additional Federal Tax: ~$70,000
State Tax (varies): $0 - $52,000
Net Take-Home: ~$325,000 - $395,200
Annuity Option (30 years)
Annual Payment: ~$33,333
Annual Federal Tax: ~$5,000
Annual State Tax: $0 - $3,333
Annual Net Payment: ~$25,000 - $28,333
Total Over 30 Years: ~$750,000 - $850,000
2024 Federal Tax Brackets
States With No Income Tax
Lottery Tax Tips
24% federal tax is automatically withheld from winnings over $5,000
You may owe additional federal taxes depending on your total income
State taxes vary significantly - some states have no income tax
Consider consulting a tax professional for large winnings
Lump sum is typically ~52% of advertised prize
Understanding Lottery Taxes
Federal Tax Treatment
Lottery winnings are treated as ordinary income and subject to federal income tax. The lottery automatically withholds 24% for federal taxes, but you may owe more depending on your total income and tax bracket.
Lump Sum vs Annuity
- •Lump Sum: Receive ~52% immediately, but pay all taxes upfront
- •Annuity: Receive full amount over 30 years, taxes paid annually
- •Annuity protects against spending too quickly
- •Lump sum allows for immediate investment opportunities
State Tax Considerations
No State Tax:
Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
High State Tax:
California (13.3%), New York (10.9%), New Jersey (10.75%)
Important Notes
• This calculator provides estimates based on 2024 tax rates
• Actual taxes may vary based on other income and deductions
• Non-residents may have different withholding rates
• Consider quarterly estimated tax payments for large winnings