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

Washington takes nothing. Washington levies no personal income tax. You still owe federal tax, which reaches 37% on a jackpot.

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

The state rate of 0% applies to both, so Washington'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 and nothing for Washington state tax. That is less than you actually owe. The top federal bracket is 37%, and the difference is due when you file.

Does Washington tax lottery winnings?

Not today. Washington has no individual income tax, so no state tax is withheld and none is owed on a prize now. Federal withholding is 24% for U.S. citizens on prizes over $5,000. A 9.9% tax on income above $1 million per household starts January 1, 2028, and it starts from federal adjusted gross income, so a large prize received in 2028 or later may be affected. The Department of Revenue has not yet published guidance on lottery prizes.

Where do I claim a Washington Powerball or Mega Millions jackpot?

Prizes of $100,000 or more are claimed in person at a Lottery office, and jackpots over $100 million must be claimed at the headquarters at 814 E 4th Avenue in Olympia. You have 180 days from the drawing date to claim, and 60 days after claiming to choose cash or annuity; without a choice you receive the annuity.

Washington lottery tax calculator

Q: Can lottery winners stay anonymous in Washington?

No, winner names are public record. Washington has no personal income tax, so a jackpot is taxed federally only. Winner names are, however, disclosable.

Washington takes nothing from your lottery winnings. You pay federal tax only.

State rate

Among the best states to win in

Anonymity

No, winner names are public record

Local tax

None

Washington has no personal income tax, so a jackpot is taxed federally only. Winner names are, however, disclosable.

Now spend it: $205.4 million from WashingtonWhat the current Powerball leaves you here, carried straight into the planner. Buy the house, then see what the rest pays you every year.

Washington has no personal income tax today, so the state withholds nothing from a Powerball or Mega Millions prize and a winner owes the state nothing at filing. Only federal withholding applies: 24% for U.S. citizens and 30% for non-U.S. citizens on prizes over $5,000. The biggest win in state history fits that pattern. A $754.6 million Powerball jackpot was sold at a Fred Meyer in Auburn for the February 6, 2023 drawing, and the winner faced a federal bill and no Washington income tax.

That picture changes for future winners. Governor Ferguson signed Senate Bill 6346 on March 30, 2026, creating a 9.9% tax on Washington taxable income above $1 million per household, starting January 1, 2028, with first returns due in April 2029. It starts from federal adjusted gross income, which includes lottery winnings, so a large prize received in 2028 or later may be taxed at 9.9% on everything above the first $1 million. The Department of Revenue says further guidance is coming, so check it before you rely on the zero today.

Washington is also stricter on privacy and claims than most states. You cannot simply claim anonymously, and a trust helps only partly: the claiming entity must have a federal employer identification number and disclose everyone with an interest, and those records can be requested by the public. Jackpots over $100 million go to the Olympia headquarters, and winners have 60 days after claiming to choose cash. Miss that window and the prize defaults to the 30-payment annuity.

Lump sum vs annuity in Washington

Powerball is currently advertising $760 million, with a cash value of $326 million. Here is what a single filer in Washington would keep under each payout option.

Lump sum

One payment of $326 million, today

$205,430,000

Federal tax: $120,570,000
Washington tax: $0
Effective rate: 36.98%

30-year annuity

$760 million paid across 29 years

$480,299,992

First payment, after tax: $7,256,627
Final payment, after tax: $29,713,454
Total advantage: +$274,869,993

The annuity pays $274,869,993 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 Washington

Deadline: Winners have 180 days from the drawing date to claim a prize, including a Powerball or Mega Millions jackpot.
Where to claim: Prizes of $100,000 or more must be claimed in person at a Lottery office, and jackpots over $100 million must be claimed at Washington's Lottery headquarters, 814 E 4th Avenue, Olympia. Winners have 60 days after claiming to choose cash or annuity, and receive the annuity if they make no choice.
Staying anonymous: Washington does not guarantee anonymity. A prize can be claimed by a legally formed entity such as a trust, but the entity needs a federal employer identification number and its documents must disclose the individuals with an interest, and under the Public Records Act those documents may be released, revealing the winners' names.
Living in another state: Washington currently has no individual income tax, so a nonresident who wins on a ticket bought here owes Washington nothing today and their home state decides the rest. The new 9.9% tax starting in 2028 covers nonresidents with Washington-source income, and the bill lists income received from wagering transactions as Washington-source, so check Department of Revenue guidance on how it treats lottery prizes. A Washington resident who wins in another state follows that state's rules: Maryland, for example, withholds 8.75% from nonresident winners on prizes over $5,000. The new Washington tax includes a credit for income tax paid to other states.

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?

Filing status

Payout

3. What you actually take home

Your estimated take-home

$205,430,000

36.98% of the prize goes to tax

You keep$205,430,00063.02%

Federal tax$120,570,00036.98%

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
Washington state taxNo state income tax	−$0
Total tax	−$120,570,000
You keep	$205,430,000

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: $205,430,000
Planned spending: −$0
Left to invest: $205,430,000

Paid to you every year, for life

$8,217,200

That is $684,767 a month, or about 94 times the typical American household's income, without touching the principal.

Assumes the remaining $205,430,000 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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Washington lottery tax questions

Compare with other states

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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.

Washington claim rules checked 2026-10-02 against: