Lottery Tax Calculator: Federal, State and City Taxes After Winnings

Use this lottery tax calculator and gambling winnings tax calculator to estimate how a cash prize may affect your federal income tax, state tax, selected local tax, withholding, and after-tax winnings.

This is an educational and entertainment planning estimate, not a final tax calculation. Your actual tax result depends on your full tax return, deductions, credits, state rules, local rules, withholding, and other facts.

Many lottery calculators stop at 24% federal withholding. This one also estimates the extra federal tax caused by stacking the prize on top of your other income, plus supported state and city/local assumptions. See why that can matter.

Jump to FAQ Why this estimate can differ from withholding

Estimate tax on lottery or gambling winnings

Cash prize or winnings Use the cash/lump-sum amount for this version.

Ticket cost or wager The calculator uses winnings minus wager as taxable gambling winnings.

Filing status

Other annual income before prize Use wages, business income, investment income, and other income before this prize.

Deduction method

Deduction amount Standard deduction updates when filing status changes.

Federal withholding rate 24% is common federal withholding for certain large gambling winnings, but it is not necessarily final tax.

State/local withholding rate Optional. Enter expected state or local withholding if known.

Residence state

Prize source state A different source state can affect withholding or filing, but this version does not model every nonresident state rule.

Manual state tax rate, if needed Most income-tax states use a built-in 2026 state bracket/rate module after you choose a state. Enter a rate here only if the selected state is not handled automatically or you need a manual override. Look up rates in the state income tax rates lookup.

City/local tax NYC, Yonkers, Detroit resident, Philadelphia resident SIT, and Baltimore City options are built in. For dropdown choices that say “enter rate,” use the custom local rate field below only after confirming that local tax applies to lottery or gambling winnings. For context, see the state and local tax rates lookup.

Manual city/local rate, if needed Use this only for city/local dropdown options that require a manual rate, such as Maryland county local tax outside the built-in Baltimore City option, Ohio local/school district tax, Portland-area local tax, Kansas City/St. Louis earnings tax if applicable, or another verified local tax. Leave it at 0 when the city/local option is built in or not applicable.

Why some lottery tax calculators underestimate your real tax bill

Many lottery tax calculators stop at 24% lottery withholding. That is useful for estimating what may be withheld upfront, but it can miss the bigger tax picture: additional federal tax after the prize is stacked on top of your other income, state income tax, and city or local tax where those rules apply.

This calculator compares your estimated federal tax before and after the prize. That helps show the difference between lottery withholding vs actual tax under the federal brackets, while also estimating state tax on lottery winnings and selected city taxes when you enter a rate or choose a supported local option.

What this calculator includes

Federal tax on lottery winnings using 2026 federal brackets
24% federal withholding by default, with an editable rate
Cash prize or lump-sum lottery tax estimates
Casino winnings, sports betting winnings, sweepstakes, and similar gambling winnings
Built-in 2026 state bracket or flat-rate estimates for most income-tax states, with a manual fallback for unusual cases
New York City, Yonkers, and Detroit resident local estimates, plus manual local-rate options for other major local systems
After-tax lottery winnings estimate
Withholding shortfall or surplus estimate

This page is not a full state tax return, nonresident state model, annuity prize calculator, or gambling-loss worksheet. For state brackets and local-tax context, keep the 2026 state income tax rates and brackets lookup open while using the state and local fields above. Built-in state modules are simplified and do not include every state credit, deduction, exemption, phaseout, special lottery rule, or nonresident rule.

State and local tax details to check

State and local tax rules for lottery and gambling winnings are not uniform. Some states tax winnings like other income, some have special withholding rules, and local rules can be narrower than they look. Many cities and counties do not have a broad local income tax at all. Others tax wages, earnings, payroll, or business income but may not tax lottery or gambling winnings the same way.

This calculator uses built-in state modules for most broad state income-tax systems and built-in local estimates only where the local rule is reasonably direct for this purpose. If your city, county, school district, or source state is not listed as automatic, use the state and local tax rates lookup as a starting point, then confirm with official state or local guidance before entering a manual local rate.

Built-in state modules: most states with broad individual income taxes use a simplified 2026 bracket or flat-rate estimate from the site state-rate lookup.
Built-in local modules: New York City, Yonkers, Detroit residents, Philadelphia resident School Income Tax, and Baltimore City local income tax are included as selectable estimates.
Manual local-rate options: Maryland counties outside Baltimore City, Ohio local taxes, Portland-area taxes, Missouri city earnings taxes, and other local systems should be entered only after checking that the tax applies to lottery or gambling winnings.
Major cities without a built-in local module: Los Angeles, San Francisco, and Chicago are not included as separate broad city personal income-tax modules here. Use the California or Illinois state estimate and verify whether any special local rule applies to your facts.
When unsure: leave the manual local-rate field at 0 until you can verify the local rule. Entering a local rate that does not apply will overstate the estimated tax.

Gambling losses, Form W-2G, and estimated taxes

The IRS says gambling winnings are fully taxable and must generally be reported as income. A payer may issue Form W-2G for certain gambling winnings reported to the IRS.

Gambling losses are not automatically netted inside this calculator. The IRS says gambling losses may be deducted only if you itemize deductions, keep required records, and do not deduct losses above gambling winnings. If a prize creates a large tax bill, estimated tax planning may also matter.

Related tax tools

Official sources

Lottery and gambling winnings tax FAQ

Is 24% withholding the final tax on lottery winnings?

No. Federal lottery withholding is often 24%, but the final federal tax depends on total income, filing status, deductions, credits, and the tax brackets that apply on the tax return.

Are lottery and gambling winnings taxable?

Yes. The IRS says gambling winnings are fully taxable and must generally be reported as income. Certain winnings may also be reported on Form W-2G.

Does this calculator include state taxes?

It includes built-in 2026 state bracket or flat-rate estimates for most states with broad individual income taxes, plus a manual fallback for unusual state or source-state situations. State lottery and gambling tax rules vary, so users should verify state treatment with official state guidance.

Does this calculator include city or local taxes?

The calculator includes simplified New York City, Yonkers, and Detroit resident estimates, plus manual local-rate options for Philadelphia, Maryland local taxes, Ohio local taxes, Portland-area taxes, Missouri city earnings taxes, and other local systems when applicable.

Can gambling losses reduce my tax?

Gambling losses may be deductible only if a taxpayer itemizes deductions, keeps required records, and does not deduct losses above gambling winnings. This calculator does not net losses against winnings.

Is this calculator for annuity prizes or noncash prizes?

No. This version is designed for cash or lump-sum lottery, casino, sports betting, sweepstakes, or other gambling winnings. Annuity prizes and noncash prizes can require different planning.