New York lottery tax calculator
New York taxes lottery winnings at up to 10.9%, on top of federal tax of up to 37%.
State rate
10.9%
Highest in the country
Anonymity
Only by claiming through a trust or legal entity
Local tax
3.88% New York City income tax
New York has the highest state lottery tax in the country at 10.9%, and New York City residents pay a further 3.876% on top. A combined bite of nearly 15% before federal tax. Yonkers residents pay a smaller surcharge. Claiming through a trust is the standard privacy route.
Now spend it: $169.9 million from New YorkWhat the current Powerball leaves you here, carried straight into the planner. Buy the house, then see what the rest pays you every year.New York withholds at the top of its scale. Under the Tax Department's rules, the Lottery withholds at the highest state rate for the year, 10.9%, with no allowance for deductions. A New York City resident also has 3.876% withheld, and a Yonkers resident 1.82575%. Add 24% federal and a New York City winner sees 38.776% held back on a large prize. Because the state withholding sits at the top rate, the remaining bill is mostly federal, since the top federal rate is 37%.
Where a winner lives inside New York changes the number more than almost anywhere else. State withholding applies to everyone, city withholding applies only to New York City and Yonkers residents, and a nonresident winner is taxed by New York on a prize over $5,000 and then settles up with their home state. Large claims also go through one office: Mega Millions prizes over $500,000 and Powerball prizes of $50,000 or more are handled in Schenectady, not at the regional centers. Winners have a full year to claim.
Privacy is limited but workable. The Lottery releases the winner's name and city, and jackpot winners cannot ask for confidentiality. The established workaround is claiming through an LLC. When a group of Long Island coworkers won the $437 million Mega Millions jackpot on New Year's Day 2019, they took the lump sum through New Life 2019 LLC. Anyone planning this should have an attorney set it up before claiming.
Lump sum vs annuity in New York
Powerball is currently advertising $760 million, with a cash value of $326 million. Here is what a single filer in New York would keep under each payout option.
Lump sum
One payment of $326 million, today
$169,896,000
- Federal tax
- $120,570,000
- New York tax
- $35,534,000
- Effective rate
- 47.88%
30-year annuity
$760 million paid across 29 years
$397,459,992
- First payment, after tax
- $6,009,766
- Final payment, after tax
- $24,581,206
- Total advantage
- +$227,563,993
The annuity pays $227,563,993 more in total, but the lump sum can be invested immediately and stays under your control. Around nine in ten winners take the cash. See how to decide between them.
Claiming a jackpot in New York
- Deadline
- New York gives one year from the drawing date to claim a Powerball or Mega Millions prize, and mailed claims must be postmarked at least 24 hours before the ticket expires.
- Where to claim
- Prizes over $600 are claimed at a Lottery Customer Service Center or by mail, but a Mega Millions prize over $500,000 or a Powerball prize of $50,000 or more is processed at the Lottery office in Schenectady.
- Staying anonymous
- New York does not offer a formal anonymity option: the Lottery releases a jackpot winner's name and city of residence, while a street address and phone number stay private. Winners have long claimed through an LLC, as the 2019 $437 million Mega Millions winners did as New Life 2019 LLC.
- Living in another state
- A nonresident who wins a New York Lottery prize over $5,000 has New York source income, owes New York tax and has it withheld. A New York resident who wins elsewhere is taxed by New York on it and may claim a resident credit for tax paid to the other state on Form IT-112-R, and New York City and Yonkers taxes still apply to residents of those cities.
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
2. Where did you buy the ticket?
3. What you actually take home
Your estimated take-home
$169,896,000
47.88% of the prize goes to tax
| 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 |
| New York state tax10.9% top marginal rate | −$35,534,000 |
| Total tax | −$156,104,000 |
| You keep | $169,896,000 |
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
Your plan
Nothing yet. Start spending and watch what is left keep paying you.
- After-tax winnings
- $169,896,000
- Planned spending
- −$0
- Left to invest
- $169,896,000
Paid to you every year, for life
$6,795,840
That is $566,320 a month, or about 78 times the typical American household's income, without touching the principal.
Assumes the remaining $169,896,000 is invested and you draw 4.0% a year, the standard planning rule for money meant to last indefinitely.
New York lottery tax questions
Compare with other states
See every state rankedRates 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.