Lottery Tax Calculator

Calculate federal and state taxes on lottery winnings and determine your net payout after all tax obligations.

Calculator

Calculator Details

Enter your information to calculate results

Results
$559,000
Estimated Net After Taxes
Gross Winnings
$1,000,000
Total Estimated Tax
$441,000
Federal Tax
$388,500
State Tax
$52,500
Effective Tax Rate44.1%
Immediate Payout (After Withholding)$710,000

How It Works

Lottery tax calculation involves two main components:

1. Immediate Withholding

Federal: 24% for winnings over $5,000

State: Varies by state (0% to 13%+)

2. Actual Tax Liability

Based on your total income and tax bracket

May result in additional taxes owed or refund

Important: This calculator provides estimates. Consult a tax professional for precise calculations and tax planning strategies.

Examples

Example 1: $1M Jackpot

Gross Winnings: $1,000,000

Federal Withholding (24%): $240,000

State Withholding (5%): $50,000

Immediate Payout: $710,000

Estimated Net After All Taxes: ~$630,000

Example 2: $100K Prize

Gross Winnings: $100,000

Federal Withholding (24%): $24,000

State Withholding (5%): $5,000

Immediate Payout: $71,000

Estimated Net After All Taxes: ~$68,000

Compare

Tax Planning Tips:

  • Consider spreading payments over multiple years if possible
  • Maximize retirement account contributions
  • Consider charitable donations for tax deductions
  • Consult with a tax professional and financial advisor

State Tax Considerations:

  • Some states have no income tax (FL, TX, WA, etc.)
  • Others have high rates (CA up to 13.3%)
  • Consider residency implications for large winnings