Which state has the lowest lottery tax?

9 states take nothing at all: California, Delaware, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. California and Delaware are notable because they tax ordinary income but exempt lottery prizes by statute.

Which state has the highest lottery tax?

New York, at 10.9%. New York City residents pay a further 3.876% city tax on top, for a combined state and local bite of nearly 15% before federal tax is applied.

Does the tax depend on where I live or where I bought the ticket?

The state where the ticket was sold withholds first. Your home state may then tax the same winnings, usually granting a credit for tax already paid elsewhere, so you generally pay the higher of the two rates rather than both in full.

How much state tax does the lottery withhold?

It ranges from nothing in states with no lottery tax to 10.9% in New York. In most states it is less than the final bill, and the balance is due when you file.

Lottery tax by state

Federal tax is identical everywhere. State tax ranges from nothing to 10.9%, a spread worth tens of millions on a jackpot. Every figure below is applied to Powerball's current cash value of $326 million, for a single filer.

Withheld vs what you owe

When you claim, the lottery withholds a flat state rate and pays you the rest. That rate is the Withheld column above, and it is often lower than the top rate the state charges, so the balance comes due when you file. Massachusetts has the widest gap: it withholds 5.0% but taxes a jackpot at 9.0%. In North Dakota, Ohio, Louisiana, Pennsylvania, Iowa, North Carolina, Michigan, Montana, Rhode Island, Connecticut, Maine, Wisconsin and New York, the withholding already matches the top rate.

Federal withholding works the same way everywhere: 24% at claim, against a top bracket of 37%. Why only 24% was withheld

The surprising states

California taxes ordinary income at up to 13.3%, the highest rate in the country, yet California Lottery prizes are exempt by statute, so winners pay federal tax only. Delaware also taxes ordinary income but exempts lottery prizes.

State	Rate	Withheld	You keep	Anonymity
CaliforniaExempt	0%	0%	$205,430,000Spend it →	No, winner names are public record
DelawareExempt	0%	0%	$205,430,000Spend it →	Yes, winners may remain anonymous
Florida	0%	0%	$205,430,000Spend it →	Yes, above a prize threshold
New Hampshire	0%	0%	$205,430,000Spend it →	Only by claiming through a trust or legal entity
South Dakota	0%	0%	$205,430,000Spend it →	Yes, winners may remain anonymous
Tennessee	0%	0%	$205,430,000Spend it →	Yes, winners may remain anonymous
Texas	0%	0%	$205,430,000Spend it →	Yes, above a prize threshold
Washington	0%	0%	$205,430,000Spend it →	No, winner names are public record
Wyoming	0%	0%	$205,430,000Spend it →	Yes, winners may remain anonymous
Arizona	2.5%	n/a	$197,280,000Spend it →	Yes, above a prize threshold
North Dakota	2.5%	2.5%	$197,280,000Spend it →	Yes, winners may remain anonymous
Ohio	2.75%	2.75%	$196,465,000Spend it →	Yes, winners may remain anonymous
Indiana	2.95%+1.75% county income tax	n/a	$195,813,000Spend it →	Only by claiming through a trust or legal entity
Louisiana	3.0%	3.0%	$195,650,000Spend it →	Yes, winners may remain anonymous
Pennsylvania	3.07%	3.07%	$195,421,800Spend it →	No, winner names are public record
Kentucky	3.5%	n/a	$194,020,000Spend it →	No, winner names are public record
Iowa	3.8%	3.8%	$193,042,000Spend it →	No, winner names are public record
Arkansas	3.9%	n/a	$192,716,000Spend it →	Yes, winners may remain anonymous
North Carolina	3.99%	3.99%	$192,422,600Spend it →	No, winner names are public record
Mississippi	4.0%	n/a	$192,390,000Spend it →	Yes, winners may remain anonymous
Michigan	4.25%+2.4% city income tax	4.25%	$191,575,000Spend it →	Yes, above a prize threshold
Colorado	4.4%	4.0%	$191,086,000Spend it →	No, winner names are public record
Nebraska	4.55%	n/a	$190,597,000Spend it →	Only by claiming through a trust or legal entity
Missouri	4.7%	4.0%	$190,108,000Spend it →	Yes, winners may remain anonymous
Oklahoma	4.75%	n/a	$189,945,000Spend it →	No, winner names are public record
West Virginia	4.82%	n/a	$189,716,800Spend it →	Yes, above a prize threshold
Illinois	4.95%	n/a	$189,293,000Spend it →	Yes, above a prize threshold
Georgia	5.19%	4.99%	$188,510,600Spend it →	Yes, winners may remain anonymous
Idaho	5.3%	n/a	$188,152,000Spend it →	No, winner names are public record
Kansas	5.7%	n/a	$186,848,000Spend it →	Yes, winners may remain anonymous
Virginia	5.75%	4.0%	$186,685,000Spend it →	Yes, above a prize threshold
Montana	5.9%	5.9%	$186,196,000Spend it →	Yes, winners may remain anonymous
New Mexico	5.9%	n/a	$186,196,000Spend it →	No, winner names are public record
Rhode Island	5.99%	5.99%	$185,902,600Spend it →	No, winner names are public record
South Carolina	6.2%	n/a	$185,218,000Spend it →	Yes, winners may remain anonymous
Maryland	6.5%+3.2% county income tax	9.5%	$184,240,000Spend it →	Yes, winners may remain anonymous
Connecticut	6.99%	6.99%	$182,642,600Spend it →	No, winner names are public record
Maine	7.15%	7.15%	$182,121,000Spend it →	Yes, above a prize threshold
Wisconsin	7.65%	7.65%	$180,491,000Spend it →	No, winner names are public record
Vermont	8.75%	6.0%	$176,905,000Spend it →	No, winner names are public record
Massachusetts	9.0%	5.0%	$176,090,000Spend it →	Only by claiming through a trust or legal entity
Minnesota	9.85%	7.25%	$173,319,000Spend it →	Yes, winners may remain anonymous
Oregon	9.9%	8.0%	$173,156,000Spend it →	No, winner names are public record
New Jersey	10.75%	8.0%	$170,385,000Spend it →	Yes, winners may remain anonymous
Washington, D.C.	10.75%	n/a	$170,385,000Spend it →	No, winner names are public record
New York	10.9%+3.88% New York City income tax	10.9%	$169,896,000Spend it →	Only by claiming through a trust or legal entity

States with no lottery

Five states sell no Powerball or Mega Millions tickets at all. Their residents can still owe home-state tax on a ticket bought across the state line.

Rates are each state's top marginal income tax rate as applied to lottery winnings, current as of 2026-01-01. Amounts withheld at claim time frequently differ. Withholding figures were checked against each state lottery or revenue department on 2 October 2026; n/a means we have not verified that state yet. Estimates for planning, not tax advice.