Quick Answer
Quick Answer: The Two Layers of Lottery Tax
Every US prize over $5,000 loses 24% to federal withholding immediately, and big prizes are really taxed at up to 37% federally when you file. The state layer is where geography matters: no state tax at all in Florida, Texas, and Washington, a statutory exemption for California Lottery prizes, and up to 10.9% plus NYC local tax in New York. The table below shows what is withheld versus what you actually owe.
2026 State Lottery Tax Table
| State | State withholding | Top state rate | Anonymity | |
|---|---|---|---|---|
| Arizona | 2.5% | 2.5% | Anonymous permanently on request for prizes of $100,000+ | Calculator → |
| California | None | Exempt (state lottery prizes) | Not anonymous | Calculator → |
| Colorado | 4% | 4.4% | Not anonymous | Calculator → |
| Florida | None | No state income tax | Names of winners of $250,000+ temporarily exempt from public disclosure for 90 days after claim | Calculator → |
| Georgia | 4.99% | 4.99% | Anonymous upon written request for prizes of $250,000+ | Calculator → |
| Illinois | 4.95% | 4.95% | Anonymous on request for prizes of $250,000+ | Calculator → |
| Indiana | 2.95% | 2.95% | No individual anonymity, but claiming through an LLC or trust is permitted | Calculator → |
| Maryland | 9.5% | 6.5% | Anonymous permitted | Calculator → |
| Michigan | 4.25% | 4.25% | Anonymous for Michigan-only game prizes over $10,000; NOT available for multistate Powerball/Mega Millions | Calculator → |
| New York | 10.9% | 10.9% | Not anonymous | Calculator → |
| North Carolina | 3.99% | 3.99% | Not anonymous | Calculator → |
| Ohio | 2.75% | 2.75% | Anonymous via blind trust permitted | Calculator → |
| Oregon | 8% | 9.9% | Anonymous by default | Calculator → |
| Texas | None | No state income tax | Winners of $1 million+ may elect anonymity at claim | Calculator → |
| Washington | None | No state income tax | Not anonymous | Calculator → |
| Wisconsin | 7.65% | 7.65% | Not anonymous | Calculator → |
Rates verified July 2026 against state lottery and revenue department sources. Federal: 24% withholding on prizes over $5,000, top bracket 37%. States not listed either have smaller search interest or no lottery; national rules are covered in the guide below.