State Lottery Tax Rates
Complete guide to lottery tax rates for all 50 states and Washington D.C. in 2026
State lottery taxes vary significantly across the United States. Some states don't tax lottery winnings at all, while others can take over 10% of your prize. Below is a comprehensive breakdown of lottery tax rates by state, including important notes about local taxes and special circumstances.
🎉 States That Don't Tax Lottery Winnings
If you live in one of these states, you'll only pay federal taxes on your lottery winnings:
Click column headers to sort
State↑ | Tax Rate | Notes |
|---|---|---|
Alabama(AL) | 5.00% | No state lottery, but winnings from other states taxed |
Alaska(AK) | None | No state income tax |
Arizona(AZ) | 2.50% | Flat tax rate |
Arkansas(AR) | 3.90% | Top marginal rate reduced to 3.9% for 2025 |
California(CA) | None | CA does not tax lottery winnings |
Colorado(CO) | 4.40% | — |
Connecticut(CT) | 6.99% | — |
Delaware(DE) | 6.60% | — |
District of Columbia(DC) | 8.95% | — |
Florida(FL) | None | No state income tax |
Georgia(GA) | 5.39% | Flat tax rate for 2025 |
Hawaii(HI) | 11.00% | No state lottery |
Idaho(ID) | 5.70% | Flat tax rate for 2025 |
Illinois(IL) | 4.95% | — |
Indiana(IN) | 3.00% | Flat tax rate reduced to 3% for 2025 |
Iowa(IA) | 3.80% | Flat tax rate reduced significantly for 2025 |
Kansas(KS) | 5.58% | Top marginal rate for 2025 |
Kentucky(KY) | 4.00% | — |
Louisiana(LA) | 3.00% | Flat tax rate for 2025 |
Maine(ME) | 7.15% | — |
Maryland(MD) | 8.75%+ 3.20% local | Includes local tax |
Massachusetts(MA) | 5.00% | — |
Michigan(MI) | 4.25% | — |
Minnesota(MN) | 9.85% | — |
Mississippi(MS) | 4.40% | Flat tax rate for 2025 |
Missouri(MO) | 4.70% | — |
Montana(MT) | 5.90% | — |
Nebraska(NE) | 5.20% | Top marginal rate reduced for 2025 |
Nevada(NV) | None | No state income tax |
New Hampshire(NH) | None | No tax on lottery winnings |
New Jersey(NJ) | 10.75% | — |
New Mexico(NM) | 5.90% | — |
New York(NY) | 10.90%+ 3.88% local | NYC residents pay additional 3.876% |
North Carolina(NC) | 4.25% | Flat tax rate reduced for 2025 |
North Dakota(ND) | 2.25% | — |
Ohio(OH) | 3.50% | Top marginal rate for 2025 |
Oklahoma(OK) | 4.75% | — |
Oregon(OR) | 9.90% | — |
Pennsylvania(PA) | 3.07% | — |
Rhode Island(RI) | 5.99% | — |
South Carolina(SC) | 6.20% | Top marginal rate for 2025 |
South Dakota(SD) | None | No state income tax |
Tennessee(TN) | None | No state income tax |
Texas(TX) | None | No state income tax |
Utah(UT) | 4.55% | No state lottery; flat tax rate reduced for 2025 |
Vermont(VT) | 8.75% | — |
Virginia(VA) | 5.75% | — |
Washington(WA) | None | No state income tax |
West Virginia(WV) | 4.82% | Top marginal rate reduced for 2025 |
Wisconsin(WI) | 7.65% | — |
Wyoming(WY) | None | No state income tax |
Understanding State Lottery Taxes
How State Taxes Work
State lottery taxes are applied on top of federal taxes. If you win a $100 million cash prize and live in New York, you'd pay approximately:
- Federal taxes: ~$37 million (37%)
- New York State taxes: ~$10.9 million (10.9%)
- NYC local taxes (if applicable): ~$3.9 million (3.876%)
- Total taxes: Up to ~$52 million
Frequently Asked Questions
Can I move to a no-tax state to avoid taxes?▼
No. You're taxed based on where you lived when you won the lottery. Moving after winning won't change your tax liability. Some states also tax non-residents who purchase winning tickets in their state.
What if I bought a ticket in a different state?▼
You'll generally owe taxes to your state of residence, not the state where you bought the ticket. However, some states do withhold taxes for non-residents, which you may be able to claim as a credit on your home state return.
Are local taxes included in the rates shown?▼
The rates shown are state-level taxes only. Some cities and localities impose additional taxes. New York City, for example, adds 3.876% on top of the state rate. Maryland also has county-level taxes. These are noted in the table where applicable.
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