How Much Lottery Prizes Are Taxed in Every State
Even if more money does indeed come with more problems, few people care about that caveat. Sure, winning the lottery comes with paying a lot of taxes, but you are still left with millions of dollars. However, before you start spending that entire oversized check, you need to calculate just how much of your lottery winnings you actually get to keep.
The truth is the taxes on those prizes are eye-popping and aplenty, and the amount you walk away with can vary widely depending on where you live. Between the federal tax on lottery winnings and additional state taxes, which vary by location, your jackpot can shrink faster than you might expect. To put this into perspective, MoneyLion recently conducted a state-by-state study that assumes that the lottery winnings are $100 million and the lump-sum winnings are 55% of the total ($55 million).
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Key Findings
The federal tax rate is 37%, which means you pay $20,350,000 on your winnings out of the gate.
Alabama, Alaska, Hawaii, Nevada and Utah do not have a state lottery, so were not included in this ranking.
States that don’t tax your lottery winnings include California, Delaware, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming
This MoneyLion guide will break down how much lottery prizes are taxed in every state, so you can see exactly where winners keep the most. If you’ve ever wondered how lottery winnings are taxed or how state rates affect your payout, here is every state ranked based on how much you would pay in state taxes, from highest to lowest.
1. New York
State tax rate: 10.9%
State taxes paid: $5,995,000
Lump sum payout after taxes: $28,655,000
Average annual annuity payout: $1,738,099
Average annuity payout after 30 years: $52,142,980
2. Oregon
State tax rate: 9.9%
State taxes paid: $5,445,000
Lump sum payout after taxes: $29,205,000
Annual annuity payout: $1,771,433
Annuity payout after 30 years: $53,142,980
3. Minnesota
State tax rate: 9.85%
State taxes paid: $5,417,500
Lump sum payout after taxes: $29,232,500
Annual annuity payout: $1,773,099
Annuity payout after 30 years: $53,192,980
4. Maryland
State tax rate: 8.75%
State taxes paid: $4,812,500
Lump sum payout after taxes: $29,837,500
Annual annuity payout: $1,809,766
Annuity payout after 30 years: $54,292,980
5. Vermont
State tax rate: 8.75%
State taxes paid: $4,812,500
Lump sum payout after taxes: $29,837,500
Annual annuity payout: $1,809,766
Annuity payout after 30 years: $54,292,980
6. New Jersey
State tax rate: 8%
State taxes paid: $4,400,000
Lump sum payout after taxes: $30,250,000
Annual annuity payout: $1,834,766
Annuity payout after 30 years: $55,042,980
7. Wisconsin
State tax rate: 7.65%
State taxes paid: $4,207,500
Lump sum payout after taxes: $30,486,500
Annual annuity payout: $1,846,433
Annuity payout after 30 years: $55,392,980
8. Maine
State tax rate: 7.15%
State taxes paid: $3,932,500
Lump sum payout after taxes: $30,717,500
Annual annuity payout: $1,863,099
Annuity payout after 30 years: $55,892,980
9. Connecticut
State tax rate: 6.99%
State taxes paid: $3,844,500
Lump sum payout after taxes: $30,805,500
Annual annuity payout: $1,868,433
Annuity payout after 30 years: $56,052,980
10. South Carolina
State tax rate: 6.5%
State taxes paid: $3,575,000
Lump sum payout after taxes: $31,075,000
Annual annuity payout: $1,884,766
Annuity payout after 30 years: $56,542,980
11. West Virginia
State tax rate: 6.5%
State taxes paid: $3,575,000
Lump sum payout after taxes: $31,075,000
Annual annuity payout: $1,884,766
Annuity payout after 30 years: $56,542,980
12. Rhode Island
State tax rate: 5.99%
State taxes paid: $3,294,500
Lump sum payout after taxes: $31,355,500
Annual annuity payout: $1,901,766
Annuity payout after 30 years: $57,052,980
13. Montana
State tax rate: 5.9%
State taxes paid: $3,245,000
Lump sum payout after taxes: $31,405,000
Annual annuity payout: $1,904,766
Annuity payout after 30 years: $57,142,980
14. New Mexico
State tax rate: 5.9%
State taxes paid: $3,245,000
Lump sum payout after taxes: $31,405,000
Annual annuity payout: $1,904,766
Annuity payout after 30 years: $57,142,980
15. Nebraska
State tax rate: 5.84%
State taxes paid: $3,212,000
Lump sum payout after taxes: $31,438,000
Annual annuity payout: $1,906,766
Annuity payout after 30 years: $57,202,980
16. Idaho
State tax rate: 5.8%
State taxes paid: $3,190,000
Lump sum payout after taxes: $31,460,000
Annual annuity payout: $1,908,099
Annuity payout after 30 years: $57,242,980
17. Kansas
State tax rate: 5.8%
State taxes paid: $3,190,000
Lump sum payout after taxes: $31,460,000
Annual annuity payout: $1,908,099
Annuity payout after 30 years: $57,242,980
18. Virginia
State tax rate: 5.75%
State taxes paid: $3,162,500
Lump sum payout after taxes: $31,487,500
Annual annuity payout: $1,909,766
Annuity payout after 30 years: $57,292,980
19. Iowa
State tax rate: 5.7%
State taxes paid: $3,135,000
Lump sum payout after taxes: $31,515,000
Annual annuity payout: $1,911,433
Annuity payout after 30 years: $57,342,980
20. Arkansas
State tax rate: 5.5%
State taxes paid: $3,025,000
Lump sum payout after taxes: $31,625,000
Annual annuity payout: $1,918,099
Annuity payout after 30 years: $57,542,980
21. Georgia
State tax rate: 5.49%
State taxes paid: $3,019,500
Lump sum payout after taxes: $31,630,500
Annual annuity payout: $1,918,433
Annuity payout after 30 years: $57,552,980
22. Massachusetts
State tax rate: 5%
State taxes paid: $2,750,000
Lump sum payout after taxes: $31,900,000
Annual annuity payout: $1,934,766
Annuity payout after 30 years: $58,042,980
23. Mississippi
State tax rate: 5%
State taxes paid: $2,750,000
Lump sum payout after taxes: $31,900,000
Annual annuity payout: $1,934,766
Annuity payout after 30 years: $58,042,980
24. Illinois
State tax rate: 4.95%
State taxes paid: $2,722,500
Lump sum payout after taxes: $31,927,500
Annual annuity payout: $1,936,433
Annuity payout after 30 years: $58,092,980
25. Missouri
State tax rate: 4.8%
State taxes paid: $2,640,000
Lump sum payout after taxes: $32,010,000
Annual annuity payout: $1,941,433
Annuity payout after 30 years: $58,242,980
26. Oklahoma
State tax rate: 4.75%
State taxes paid: $2,612,500
Lump sum payout after taxes: $32,037,500
Annual annuity payout: $1,943,099
Annuity payout after 30 years: $58,292,980
27. North Carolina
State tax rate: 4.5%
State taxes paid: $2,475,000
Lump sum payout after taxes: $32,175,000
Annual annuity payout: $1,951,433
Annuity payout after 30 years: $58,542,980
28. Colorado
State tax rate: 4.4%
State taxes paid: $2,420,000
Lump sum payout after taxes: $32,230,000
Annual annuity payout: $1,954,766
Annuity payout after 30 years: $58,642,980
29. Louisiana
State tax rate: 4.25%
State taxes paid: $2,337,500
Lump sum payout after taxes: $32,312,500
Annual annuity payout: $1,959,766
Annuity payout after 30 years: $58,792,980
30. Michigan
State tax rate: 4.25%
State taxes paid: $2,337,500
Lump sum payout after taxes: $32,312,500
Annual annuity payout: $1,959,766
Annuity payout after 30 years: $58,792,980
31. Kentucky
State tax rate: 4%
State taxes paid: $2,200,000
Lump sum payout after taxes: $32,450,000
Annual annuity payout: $1,968,099
Annuity payout after 30 years: $59,042,980
32. Ohio
State tax rate: 4%
State taxes paid: $2,200,000
Lump sum payout after taxes: $32,450,000
Annual annuity payout: $1,968,099
Annuity payout after 30 years: $59,042,980
33. Pennsylvania
State tax rate: 3.07%
State taxes paid: $1,688,500
Lump sum payout after taxes: $32,961,500
Annual annuity payout: $1,999,099
Annuity payout after 30 years: $59,972,980
34. Indiana
State tax rate: 3.05%
State taxes paid: $1,677,500
Lump sum payout after taxes: $32,972,500
Annual annuity payout: $1,999,766
Annuity payout after 30 years: $59,992,980
35. Arizona
State tax rate: 2.5%
State taxes paid: $1,375,000
Lump sum payout after taxes: $33,275,000
Annual annuity payout: $2,018,099
Annuity payout after 30 years: $60,542,980
36. North Dakota
State tax rate: 1.95%
State taxes paid: $1,072,500
Lump sum payout after taxes: $33,577,500
Annual annuity payout: $2,036,433
Annuity payout after 30 years: $61,092,980
37. States With No Tax
States: California, Delaware, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming
Lump sum payout after taxes: $34,650,000
Average annual annuity payout: $2,101,433
Average annuity payout after 30 years: $63,042,980
Methodology: For this study, MoneyLion analyzed each state to find the amount of taxes taken out of lottery winnings. Using LotteryCalc.com, the amount of federal and state taxes was identified. This study assumes that the lottery winnings are $100 million and the lump-sum winnings are 55% of the total ($55 million). Using each state's taxes taken from lottery winnings, along with LotteryCalc's tax calculator, the amount of federal and state taxes paid in each state was calculated. The calculator assumes a federal tax rate of 36.96% and the winner is a single filer for taxes. The states of Alabama, Alaska, Hawaii, Nevada, and Utah do not have state lotteries and were not analyzed in this study. The states were sorted to show the most taxes paid first. All data is up to date as of May 8, 2026.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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