Lottery Tax Calculator 2026: federal tax on a prize

The 24% the lottery withholds is a down payment, not the final bill. Enter the amount you receive this year (the cash option, or one annuity payment) to see the federal tax at 2026 rates and what is left.

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How lottery winnings are taxed

Prizes are ordinary income. When winnings minus the ticket price are more than $5,000.00, the lottery withholds 24% for federal tax. When you file, the prize is added to your other income and taxed through the 2026 brackets, so a large prize ends up mostly in the 37% bracket and the difference is due with your return.

federal tax = tax(other income + prize − deductions) − tax(other income − deductions)

Take-home by prize size

Prize	Withheld (24%)	Federal tax	Due at filing	Take-home
$10,000.00	$2,400.00	$0.00	$2,400.00 back	$10,000.00
$100,000.00	$24,000.00	$13,170.00	$10,830.00 back	$86,830.00
$1,000,000.00	$240,000.00	$320,000.25	$80,000.25	$679,999.75
$10,000,000.00	$2,400,000.00	$3,650,000.25	$1,250,000.25	$6,349,999.75
$100,000,000.00	$24,000,000.00	$36,950,000.25	$12,950,000.25	$63,049,999.75

Single filer, no other income, standard deduction, 2026 brackets, no state tax. A $10,000 prize with no other income stays under the standard deduction, so the withheld tax comes back at filing.

Powerball and Mega Millions

Advertised jackpots are annuity totals. Use the cash value the lottery announces for the lump sum, or one year's annuity payment, as the prize. Each year's payment is taxed in that year.

Questions

How much federal tax is taken from lottery winnings?

The lottery withholds 24% of winnings over $5,000.00 when you claim. Your actual federal tax is set by your bracket when you file, up to 37%, so big winners usually owe more in April.

How much do I keep from a $1 million lottery prize?

A single filer with no other income pays $320,000.25 in 2026 federal tax on $1,000,000.00 received in one year, keeping $679,999.75 before state tax. $240,000.00 is withheld up front and $80,000.25 is due at filing.

Lump sum or annuity: which pays less tax?

Each annuity payment is taxed in the year you receive it, which can keep part of it in lower brackets; a lump sum is taxed in one year, mostly at 37%. Enter one year's payment as the prize to compare.

Do I pay state tax on lottery winnings?

It depends on your state, and some states do not tax state lottery prizes. Enter your state's rate in the optional field; this calculator does not hold a state table yet.

Sources

Checked 2026-11-06. The 90% rule is law (P.L. 119-21); the IRS regulation implementing it is still proposed. Bills to restore the 100% deduction have been introduced in Congress but not passed. This is an estimate for planning, not tax advice; a tax professional can check your full return.

Lottery tax calculator (2026)