How much tax do you pay on lottery winnings in Hawaii?

Hawaii does not operate a lottery, but if you buy a ticket in another state you still owe Hawaii income tax of up to 11.0% on the winnings when you file.

Is it better to take the lump sum or annuity in Hawaii?

The state rate of 11.0% applies to both, so Hawaii's tax treatment does not favour one over the other. The decision comes down to whether you want control of the capital or the structural protection of a payment stream.

How much is withheld immediately?

The lottery withholds 24% federally at claim time, plus state withholding in Hawaii. That is less than you actually owe. The top federal bracket is 37%, and the difference is due when you file.

Hawaii lottery taxes

Q: Can lottery winners stay anonymous in Hawaii?

Not applicable, no state lottery. Hawaii runs no lottery and has the second-highest income tax rate in the country at 11%. A ticket bought on the mainland is fully taxable when you file in Hawaii. The worst of both worlds.

Hawaii does not run a lottery, but a ticket bought across the state line is still taxable Hawaii income.

State rate

11.0%

Anonymity

Not applicable, no state lottery

Local tax

None

Hawaii runs no lottery and has the second-highest income tax rate in the country at 11%. A ticket bought on the mainland is fully taxable when you file in Hawaii. The worst of both worlds.

Run your own numbers

Switch games, compare the annuity, change your filing status, then plan what to do with what is left.

1. Choose a jackpot

Powerball

$760 million

Cash value $326 million

Next draw Saturday, October 31

Mega Millions

$463 million

Cash value $194.9 million

Next draw Friday, October 30

2. Where did you buy the ticket?

State

Filing status

Payout

3. What you actually take home

Your estimated take-home

$169,570,000

47.98% of the prize goes to tax

You keep$169,570,00052.02%

Federal tax$120,570,00036.98%

Hawaii tax$35,860,00011.0%

Cash value (lump sum)	$326,000,000
Federal tax withheld24% taken automatically at claim time	−$78,240,000
Additional federal tax due at filingThe gap between 24% withholding and your real bracket	−$42,330,000
Hawaii state tax11.0% top marginal rate	−$35,860,000
Total tax	−$156,430,000
You keep	$169,570,000

The lottery withholds $78,240,000 up front, but your actual federal bill is $120,570,000. Set aside roughly $42,330,000 for April. This shortfall is the most common surprise for jackpot winners.

4. Plan what to do with it

The hard part is not the windfall, it is what is left in year ten. Sketch out your spending and see what the remainder can pay you every year, indefinitely.

What would you buy first?

Tap an idea to add it at a typical price, or dream up your own. Every amount stays editable once it is in your plan.

The fun part

The people you love

Something else

Amount (USD)

Your plan

Nothing yet. Start spending and watch what is left keep paying you.

After-tax winnings: $169,570,000
Planned spending: −$0
Left to invest: $169,570,000

Paid to you every year, for life

$6,782,800

That is $565,233 a month, or about 78 times the typical American household's income, without touching the principal.

Assumes the remaining $169,570,000 is invested and you draw 4.0% a year, the standard planning rule for money meant to last indefinitely.

Share your plan

Anyone with the link sees your breakdown and can build their own.

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Hawaii lottery tax questions

Compare with other states

See every state ranked

Rates reflect each state's top marginal income tax rate as applied to lottery winnings, current as of 2026-01-01. The amount withheld at claim time frequently differs. This is an estimate for planning, not tax advice.