Lottery tax calculator
Any prize, any state: federal withholding, federal tax at filing, state and city tax, for a jackpot or a single cash prize.
Powerball jackpot $360 million (current), winner living in New Mexico.
You keep about
$87.8 million in cash, single filer
Eighty-seven million seven hundred fifty-five thousand six hundred and 00/100 dollars
| Item | Amount | Share of jackpot |
|---|---|---|
| Advertised jackpotSum of 30 annuity payments | $360,000,000 | |
| Cash optionOfficial cash value | $153,600,000 | |
| Federal tax withheld at claim24% of the prize | −$36,864,000 | |
| Federal tax still owed at filingTop bracket is 37% | −$19,918,000 | |
| New Mexico state tax5.9% of the prize; $9.2 million withheld at claim | −$9,062,400 | |
| You keep24.4% of the advertised jackpot | $87,755,600 |
Federal reporting and withholding thresholds for 2026
Every prize is taxable income. What changes with the size of the prize is whether the payer reports it to the IRS on Form W-2G and whether it withholds tax up front.
| Type of winnings | W-2G at | Notes |
|---|---|---|
| Lottery | $2,000 | 2026: winnings of $2,000 or more AND at least 300x the wager (up from $600 before 2026). OBBBA sec. 70433 raised the general 'minimum threshold amount' from $600 to $2,000 for payments after 2025, inflation-indexed after 2026. A W-2G is also required whenever 24% regular withholding applies (proceeds > $5,000). |
| Sports wagering and other wagers | $2,000 | Same $2,000 minimum threshold plus the 300x-wager test (was $600). |
| Slot machines | $2,000 | Was $1,200 (since 1977). IRS W-2G instructions (Rev. Jan 2026): $2,000 for calendar year 2026, inflation-adjusted later. Wager not subtracted. |
| Bingo | $2,000 | Was $1,200. $2,000 for 2026 per IRS W-2G instructions. Wager not subtracted. |
| Keno | $2,000 | Was $1,500. IRS W-2G instructions name bingo, keno and slots together at $2,000 for 2026, measured net of the wager. UNCERTAIN: one secondary source said keno was unchanged at $1,500; the IRS text found in search supports $2,000. |
| Poker tournament | $5,000 | More than $5,000 net (prize minus buy-in). Unchanged for 2026 per secondary sources. |
Federal withholding of 24% starts when lottery proceeds (prize minus the ticket price) are more than $5,000, and then applies to the whole prize. Without a Social Security number on file, backup withholding of 24% can apply to smaller reportable prizes.
Federal brackets for 2026
| Rate | Single | Married jointly |
|---|---|---|
| 10% | $0 | $0 |
| 12% | $12,400 | $24,800 |
| 22% | $50,400 | $100,800 |
| 24% | $105,700 | $211,400 |
| 32% | $201,775 | $403,550 |
| 35% | $256,225 | $512,450 |
| 37% | $640,600 | $768,700 |
Standard deduction 2026: $16,100 single, $32,200 married filing jointly, $24,150 head of household.
Questions
Do I have to pay taxes on a $1,000 lottery win?
Yes. All lottery winnings are taxable income, even when nothing is withheld and no form is issued. For 2026 the lottery issues Form W-2G for prizes of $2,000 or more (and at least 300 times the ticket price), and withholds 24% federal tax only on prizes over $5,000.
What is the federal tax rate on lottery winnings?
Winnings are taxed at your ordinary income tax rates, from 10% to 37%. The lottery withholds a flat 24% on prizes over $5,000; the top 37% rate applies to taxable income above $640,600 for single filers in 2026.
Do you pay state tax on lottery winnings if you live in another state?
Often yes, twice on paper but not in practice: the state where you bought the ticket can tax a non-resident's prize, and your home state taxes it too but gives a credit for the tax paid to the other state. You end up paying the higher of the two rates. Set "Ticket bought in" above to see it.
When is a W-2G issued for lottery winnings?
For 2026, when the prize is $2,000 or more and at least 300 times the wager (the threshold was $600 before 2026), and whenever federal tax is withheld.
These figures describe the taxes on a prize that has already been won; they are not a reason to buy a ticket. Jackpot odds are hundreds of millions to one. If gambling is causing problems for you or someone close to you, call or text 1-800-GAMBLER (National Problem Gambling Helpline, 24/7).
Sources for this page
- IRS: 2026 inflation adjustments (Rev. Proc. 2025-32) (checked Sep 26, 2026)
- IRS Publication 505: withholding on gambling winnings (checked Sep 26, 2026)
- IRS: Instructions for Forms W-2G and 5754 (checked Sep 26, 2026)
Figures are estimates for planning, not tax or legal advice. How they are calculated: methodology. Read the disclaimer.