Introduction
Lotteries in the United States are not unified in one national organization. However, there are associations of state lotteries that jointly organize games spanning across state lines that include larger jackpots, such as Mega Millions and Powerball.
Lottery winnings, under federal and state tax laws, are considered taxable income. At the national level, the Internal Revenue Service (IRS) taxes 24% of lottery winnings before the winner even receives the winnings. Any additional taxes owed are expected to be paid by the winner with the regular tax filing(s). At the state level, some states do not tax lottery winnings, these include: Alabama, Alaska, California, Delaware, Florida, Hawaii, Mississippi, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Utah, Washington, and Wyoming.
While others vary from a percentage as low as around 2% to a percentage as high as over 8%.
Learn for yourself how taxes on lottery winnings differ by state by exploring the data in the charts.
| # | State | Lottery Tax Rate | Anonymous Lottery Status | Powerball Jackpot Winners |
|---|---|---|---|---|
| 1 | New York | 8.82% | No | 12 |
| 2 | Maryland | 8.75% | Yes | 3 |
| 3 | New Jersey | 8% | Yes | 11 |
| 4 | Oregon | 8% | No | 5 |
| 5 | Wisconsin | 7.65% | No | 19 |
| 6 | Minnesota | 7.25% | Yes | 22 |
| 7 | Arkansas | 7% | No | 1 |
| 8 | South Carolina | 7% | Yes | 6 |
| 9 | Connecticut | 6.99% | No | 9 |
| 10 | Idaho | 6.93% | No | 5 |
| 11 | Montana | 6.9% | Yes | 4 |
| 12 | West Virginia | 6.5% | Yes | 9 |
| 13 | New Hampshire | 6% | No | 11 |
| 14 | New Mexico | 6% | No | 5 |
| 15 | Vermont | 6% | No | 1 |
| 16 | Rhode Island | 5.99% | No | 8 |
| 17 | Georgia | 5.75% | Yes | 6 |
| 18 | North Carolina | 5.45% | No | 6 |
| 19 | Arizona | 5% | Yes | 14 |
| 20 | Iowa | 5% | No | 9 |
| 21 | Kansas | 5% | Yes | 11 |
| 22 | Kentucky | 5% | No | 18 |
| 23 | Louisiana | 5% | No | 17 |
| 24 | Maine | 5% | No | 0 |
| 25 | Massachusetts | 5% | No | 6 |
| 26 | Nebraska | 5% | No | 10 |
| 27 | Illinois | 4.95% | No | 2 |
| 28 | Michigan | 4.25% | No | 5 |
| 29 | Colorado | 4% | No | 3 |
| 30 | Missouri | 4% | Yes | 31 |
| 31 | Ohio | 4% | Yes | 3 |
| 32 | Oklahoma | 4% | No | 4 |
| 33 | Virginia | 4% | Yes | 1 |
| 34 | Indiana | 3.23% | No | 39 |
| 35 | Pennsylvania | 3.07% | No | 18 |
| 36 | North Dakota | 2.9% | Yes | 0 |
| 37 | California | 0% | No | 11 |
| 38 | Delaware | 0% | Yes | 10 |
| 39 | Florida | 0% | Yes | 16 |
| 40 | South Dakota | 0% | No | 3 |
| 41 | Tennessee | 0% | No | 7 |
| 42 | Texas | 0% | Yes | 2 |
| 43 | Washington | 0% | No | 1 |
| 44 | Wyoming | 0% | No | 0 |
Lottery Tax Rate by State
Arizona
Lottery Tax Rate
5%
Ranked in the US
#19
Ranked in the US
#9
Arkansas
Lottery Tax Rate
7%
Ranked in the US
#7
Ranked in the US
#38
California
Lottery Tax Rate
0%
Ranked in the US
#37
Ranked in the US
#11
Colorado
Lottery Tax Rate
4%
Ranked in the US
#29
Ranked in the US
#32
Connecticut
Lottery Tax Rate
6.99%
Ranked in the US
#9
Ranked in the US
#17
Delaware
Lottery Tax Rate
0%
Ranked in the US
#38
Ranked in the US
#15
Florida
Lottery Tax Rate
0%
Ranked in the US
#39
Ranked in the US
#8
Georgia
Lottery Tax Rate
5.75%
Ranked in the US
#17
Ranked in the US
#22
Idaho
Lottery Tax Rate
6.93%
Ranked in the US
#10
Ranked in the US
#26
Illinois
Lottery Tax Rate
4.95%
Ranked in the US
#27
Ranked in the US
#36
Indiana
Lottery Tax Rate
3.23%
Ranked in the US
#34
Ranked in the US
#1
Iowa
Lottery Tax Rate
5%
Ranked in the US
#20
Ranked in the US
#18
Kansas
Lottery Tax Rate
5%
Ranked in the US
#21
Ranked in the US
#12
Kentucky
Lottery Tax Rate
5%
Ranked in the US
#22
Ranked in the US
#5
Louisiana
Lottery Tax Rate
5%
Ranked in the US
#23
Ranked in the US
#7
Maine
Lottery Tax Rate
5%
Ranked in the US
#24
Ranked in the US
#42
Maryland
Lottery Tax Rate
8.75%
Ranked in the US
#2
Ranked in the US
#33
Massachusetts
Lottery Tax Rate
5%
Ranked in the US
#25
Ranked in the US
#23
Michigan
Lottery Tax Rate
4.25%
Ranked in the US
#28
Ranked in the US
#27
Minnesota
Lottery Tax Rate
7.25%
Ranked in the US
#6
Ranked in the US
#3
Missouri
Lottery Tax Rate
4%
Ranked in the US
#30
Ranked in the US
#2
Montana
Lottery Tax Rate
6.9%
Ranked in the US
#11
Ranked in the US
#30
Nebraska
Lottery Tax Rate
5%
Ranked in the US
#26
Ranked in the US
#16
New Hampshire
Lottery Tax Rate
6%
Ranked in the US
#13
Ranked in the US
#13
New Jersey
Lottery Tax Rate
8%
Ranked in the US
#3
Ranked in the US
#14
New Mexico
Lottery Tax Rate
6%
Ranked in the US
#14
Ranked in the US
#28
New York
Lottery Tax Rate
8.82%
Ranked in the US
#1
Ranked in the US
#10
North Carolina
Lottery Tax Rate
5.45%
Ranked in the US
#18
Ranked in the US
#24
North Dakota
Lottery Tax Rate
2.9%
Ranked in the US
#36
Ranked in the US
#44
Ohio
Lottery Tax Rate
4%
Ranked in the US
#31
Ranked in the US
#34
Oklahoma
Lottery Tax Rate
4%
Ranked in the US
#32
Ranked in the US
#31
Oregon
Lottery Tax Rate
8%
Ranked in the US
#4
Ranked in the US
#29
Pennsylvania
Lottery Tax Rate
3.07%
Ranked in the US
#35
Ranked in the US
#6
Rhode Island
Lottery Tax Rate
5.99%
Ranked in the US
#16
Ranked in the US
#20
South Carolina
Lottery Tax Rate
7%
Ranked in the US
#8
Ranked in the US
#25
South Dakota
Lottery Tax Rate
0%
Ranked in the US
#40
Ranked in the US
#35
Tennessee
Lottery Tax Rate
0%
Ranked in the US
#41
Ranked in the US
#21
Texas
Lottery Tax Rate
0%
Ranked in the US
#42
Ranked in the US
#37
Vermont
Lottery Tax Rate
6%
Ranked in the US
#15
Ranked in the US
#39
Virginia
Lottery Tax Rate
4%
Ranked in the US
#33
Ranked in the US
#40
Washington
Lottery Tax Rate
0%
Ranked in the US
#43
Ranked in the US
#41
West Virginia
Lottery Tax Rate
6.5%
Ranked in the US
#12
Ranked in the US
#19
Wisconsin
Lottery Tax Rate
7.65%
Ranked in the US
#5
Ranked in the US
#4
Wyoming
Lottery Tax Rate
0%
Ranked in the US
#44
Ranked in the US
#45