All 48 lottery jurisdictions
Lottery taxes by state
What the lottery holds back on payout day is not what you finally owe. Most pages on this subject quote one number and it is usually the wrong one.
What would you actually keep?
You keep, after everything
$70.6M
$70,595,500 of a $271.0M jackpot, an effective rate of 47.9%
Hits your account
$88.2M
After 24% federal withholding and 10.90% state
Still owed at filing
$17.6M
Withholding is not the final bill. Set this aside.
New York City residents pay a further 3.876% local tax, and Yonkers residents a smaller surcharge.
New York ranks 48 of 48 for what you keep
Best
California
$85.4M
Worst
New York
$70.6M
The gap between them on this jackpot is $14.8M, decided entirely by which counter you walked into.
Cash option is estimated at 50% of the advertised annuity. The real ratio moves with interest rates and is set per draw. Federal is modelled as 24% withheld then topped up to the 37% top rate, which slightly overstates the bill because the first part of your income is taxed in lower brackets. Rates verified 2026-09-17. General information, not tax advice.
The eight states that take nothing
No state income tax, or in California's case a deliberate exemption for lottery winnings specifically. On a $271M jackpot, buying a ticket in one of these rather than New York is worth millions on its own.
Every jurisdiction, ranked by what you keep
Based on the cash option of a $271M jackpot. Where the two columns differ, the second is the one that matters.
| State | Withheld | Final rate | You keep |
|---|---|---|---|
| California | none | none | $85.4M |
| Florida | none | none | $85.4M |
| New Hampshire | none | none | $85.4M |
| Puerto Rico | none | none | $85.4M |
| South Dakota | none | none | $85.4M |
| Tennessee | none | none | $85.4M |
| Texas | none | none | $85.4M |
| US Virgin Islands | none | none | $85.4M |
| Washington | none | none | $85.4M |
| Wyoming | none | none | $85.4M |
| Arizona | 2.50% | 2.50% | $82.0M |
| Ohio | 2.75% | 2.75% | $81.6M |
| North Dakota | 2.90% | 2.90% | $81.4M |
| Indiana | 2.95% | 2.95% | $81.4M |
| Louisiana | 3.00% | 3.00% | $81.3M |
| Pennsylvania | 3.07% | 3.07% | $81.2M |
| Kentucky | 3.50% | 3.50% | $80.6M |
| Arkansas | 3.70% | 3.70% | $80.4M |
| Iowa | 3.80% | 3.80% | $80.2M |
| North Carolina | 3.99% | 3.99% | $80.0M |
| Colorado | 4.00% | 4.00% | $79.9M |
| Missouri | 4.00% | 4.00% | $79.9M |
| Mississippi | 4.00% | 4.00% | $79.9M |
| Michigan | 4.25% | 4.25% | $79.6M |
| Oklahoma | 4.50% | 4.50% | $79.3M |
| Nebraska | 4.55% | 4.55% | $79.2M |
| West Virginia | 4.58% | 4.58% | $79.2M |
| Illinois | 4.95% | 4.95% | $78.7M |
| Georgia | 4.99% | 4.99% | $78.6M |
| Kansas | 5.00% | 5.00% | $78.6M |
| Maine | 5.00% | 5.00% | $78.6M |
| South Carolina | 5.21% | 5.21% | $78.3M |
| Idaho | 5.30% | 5.30% | $78.2M |
| Montana | 5.65% | 5.65% | $77.7M |
| Virginia | 4.00% | 5.75% | $77.6M |
| New Mexico | 5.90% | 5.90% | $77.4M |
| Rhode Island | 5.99% | 5.99% | $77.2M |
| Delaware | 0.00% | 6.60% | $76.4M |
| Connecticut | 6.99% | 6.99% | $75.9M |
| Wisconsin | 7.65% | 7.65% | $75.0M |
| Vermont | 6.00% | 8.75% | $73.5M |
| Massachusetts | 5.00% | 9.00% | $73.2M |
| Maryland | 9.50% | 9.50% | $72.5M |
| Minnesota | 7.25% | 9.85% | $72.0M |
| Oregon | 8.00% | 9.90% | $72.0M |
| Washington DC | 10.75% | 10.75% | $70.8M |
| New Jersey | 8.00% | 10.75% | $70.8M |
| New York | 10.90% | 10.90% | $70.6M |
Federal tax applies everywhere on top: 24% withheld, 37% ultimately owed on a jackpot. Withholding rates verified 2026-09-17 against the per draw jackpot analysis the US industry uses. General information, not tax advice.
Common questions
How much tax do you pay on lottery winnings?+
The lottery withholds 24% for federal tax on any prize above $5,000, but a jackpot lands in the top federal bracket of 37%, so more is owed at filing. State tax is on top of that and ranges from nothing at all to 10.9% in New York, plus a further 3.876% for New York City residents.
Which states do not tax lottery winnings?+
California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming take nothing. California is the notable one: it taxes most income heavily but exempts lottery winnings entirely.
Is the amount withheld the same as the tax I owe?+
No, and this is where people get caught. Withholding is a deposit against the bill, not the bill. Delaware withholds nothing at all and then taxes the win at up to 6.6% when you file, so a winner who spent the payout has a problem.
Does it matter which state I bought the ticket in?+
Yes. Tax generally follows the state that sold the ticket, not where you live, though your home state may also want a share and usually gives credit for what you already paid. On a large jackpot the difference between the best and worst state runs to tens of millions.
Should I take the cash or the annuity?+
The cash option is roughly half the advertised jackpot, because the advertised figure is 30 years of payments. Taking the annuity spreads the tax across three decades rather than paying it all in the top bracket at once, which is the strongest argument for it. The strongest argument against is that you control the money sooner.