Questions this estimate can answer
- You know the cash prize amount and want a federal planning estimate.
- You want to see why withholding can differ from final tax.
- You need other annual income and filing status included in the estimate.
Withholding versus estimated tax
Lottery Tax Calculator — Federal Withholding & Take-Home
Compare the common 24% federal lottery withholding with an estimated final federal tax and a state rate you enter.
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Saved only on this devicePlanning estimate
Your inputs
Enter the details you haveWe apply the 2026 federal brackets, standard deduction and the 24% lottery withholding rule automatically.
Add a state-tax planning rateOptional
Estimated result
Estimated prize after tax$659,170
24% federal withholding$240,000
Estimated final federal tax$340,830
Potential federal amount beyond withholding$100,830
State estimateNot included
Enter the cash value actually received. The 24% amount is withholding, while final tax depends on total income and circumstances.
Inputs stay in this browser and are never uploaded.
Checks you still need to make
- Valuing an advertised annuity jackpot as if it were the cash option.
- Assuming every state taxes lottery winnings at one flat rate.
- Replacing Form W-2G, a filed return, or professional advice for a large prize.
Related questions
When to use this calculator
See a worked example for the situation closest to yours.
Lottery tax estimate
Formula
Estimated tax on other income + winnings, less tax on other income alone; compare that with 24% regular federal withholding.
The 24% amount is withholding, not necessarily the final federal tax rate. Large prizes can enter higher marginal brackets.
Enter the cash value actually received and a state rate if applicable. This is not an annuity valuation or state-specific lottery rule engine.
Assumptions and limits
- Cash prize is taxable ordinary income
- Federal withholding shown at 24%
- State tax is a flat user-entered estimate
- No charitable deduction or shared ownership
$1,000,000 cash prize with $80,000 of other income
- Federal lottery withholding at 24% is $240,000.
- The calculator adds the prize to other income and applies the 2026 federal brackets to estimate the incremental federal liability.
- It compares estimated final federal tax with withholding and keeps optional state tax on a separate line.
Result: The 24% withholding is a prepayment, not a promise that the final federal liability is 24%. Filing status and other annual income can materially change the gap.
Common mistakes that change the result
- Treating the 24% federal withholding amount as the final tax bill.
- Entering an advertised annuity jackpot when the cash option is the amount actually received.
- Ignoring other annual income that pushes part of the prize into higher brackets.
- Applying a generic state rate without checking whether that state taxes the prize.
Planning estimate, not tax advice
Tax law depends on facts this tool cannot collect. Do not use the result as the sole basis for filing, withholding or payment decisions.
Frequently asked questions
Is 24% the final lottery tax?
Often not. It is commonly the amount withheld on qualifying winnings. Your final tax depends on total annual income, filing status and deductions.
Does every state tax lottery winnings?
No. State treatment varies. Enter a rate only after checking the lottery and revenue authority for your state.
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