Quick answer
Net lottery winnings = prize × (1 − federal rate − state rate). A $1,000,000 prize taxed at 24% federal and 5% state leaves $710,000 after $240,000 of federal and $50,000 of state tax.
Enter the prize and the federal and state tax rates. The calculator returns the net amount and the taxes.
Related tools: Effective Corporate Tax Rate Calculator: Tax expense as a share of pre-tax income. Sales Tax Calculator: Add or remove sales tax at a rate you enter.
How to use the Lottery Tax Calculator
- Enter prize ($) (above 0).
- Enter federal tax rate (%) (between 0 and 100).
- Enter state tax rate (%) (between 0 and 100).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Prize | A number, in $ | > 0 |
| Federal tax rate | A number, in % | ≥ 0, ≤ 100 |
| State tax rate | A number, in % | ≥ 0, ≤ 100 |
Formula and method
Formula
net = prize × (1 − federal − state)
IEEE-754 double precision; shown to the decimals indicated.
Actual tax depends on your total income, brackets, withholding and place of residence, so use your own effective rates.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Prize = 1000000; Federal tax rate = 24; State tax rate = 5.
| Result | Value |
|---|---|
| Net after tax | $710,000.00 |
| Federal tax | $240,000.00 |
| State tax | $50,000.00 |
Example 2
Inputs: Prize = 50000; Federal tax rate = 24; State tax rate = 0.
| Result | Value |
|---|---|
| Net after tax | $38,000.00 |
| Federal tax | $12,000.00 |
| State tax | $0.00 |
Example 3
Inputs: Prize = 250000; Federal tax rate = 37; State tax rate = 6.5.
| Result | Value |
|---|---|
| Net after tax | $141,250.00 |
| Federal tax | $92,500.00 |
| State tax | $16,250.00 |
The first line is the headline result (net after tax). Below it the lottery Tax Calculator lists federal tax and state tax, which describe the same case from other angles. IEEE-754 double precision; shown to the decimals indicated.
A flat estimate
Federal withholding on lottery prizes is typically 24%, but large prizes are taxed up to 37% at filing, so extra tax may be due. State rates vary from 0% in some states to over 10%.
Lump sum or annuity
A flat-rate estimate ignores progressive brackets and the lump sum versus annuity choice. Seek professional advice before claiming a large prize.
How the result changes with prize
Holding every other input at the first worked example, this table changes only prize. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Prize | Net after tax | Federal tax | State tax |
|---|---|---|---|
| 500000 | $355,000.00 | $120,000.00 | $25,000.00 |
| 1000000 | $710,000.00 | $240,000.00 | $50,000.00 |
| 2000000 | $1,420,000.00 | $480,000.00 | $100,000.00 |
| 4000000 | $2,840,000.00 | $960,000.00 | $200,000.00 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Prize: entering "0" shows "Prize must be greater than 0." beside that field and no result.
- State tax rate: entering "50" shows "The combined rate cannot exceed 100%." beside that field and no result.
Choosing between the Lottery Tax Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Effective Corporate Tax Rate Calculator](/tax/effective-corporate-tax-rate/) | income tax expense and pre-tax income | Effective tax rate |
| [Sales Tax Calculator](/tax/sales-tax-calculator/) | calculate, amount and sales tax rate | Total including tax |
| [Federal Estate Tax Calculator](/tax/estate-tax-calculator/) | year of death, gross estate and deductions | Estimated federal estate tax |
| [Adjusted Gross Income (AGI) Calculator](/finance/agi/) | wages, salaries and tips, interest and ordinary dividends and business or other net income | Adjusted gross income |
| [MAGI and Roth IRA Contribution Calculator](/finance/magi-calculator/) | adjusted gross income, add-backs and tax year | Modified AGI |
Background: tax estimates
Tax results depend on the jurisdiction, the tax year and your circumstances. Whether VAT applies and at what rate depends on what is sold, to whom and where; estate-tax thresholds and rates change by year, and published figures for the same year sometimes conflict between websites.
Treat the result as an estimate and confirm rates and thresholds with the official tax authority (for example the IRS for US federal tax, or your national VAT authority).
Assumptions and limitations
- A flat-rate estimate only
This is an estimate for general information, not tax advice. Tax rules depend on jurisdiction, year and personal circumstances, so check the official guidance or a qualified tax professional.
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for prize and state tax rate to confirm this.
Frequently asked questions
Is lottery money taxable?
Generally yes, as income.
What is the top US federal rate?
The top US federal income tax rate is 37%, which applies to large lottery prizes at filing even though 24% is withheld.
Which states don't tax winnings?
Some, such as Florida and Texas.
What does the Lottery Tax Calculator calculate?
Take-home from a prize after the tax rates you enter. It returns Net after tax, Federal tax and State tax.
What formula does the Lottery Tax Calculator use?
net = prize × (1 − federal − state). Actual tax depends on your total income, brackets, withholding and place of residence, so use your own effective rates.
What do I need to enter in the lottery Tax Calculator?
You enter Prize ($), Federal tax rate (%) and State tax rate (%).
How is the result rounded or limited?
IEEE-754 double precision; shown to the decimals indicated. A flat-rate estimate only.
What is an example of a lottery Tax result?
With prize 1000000, federal tax rate 24 and state tax rate 5, the net after tax is $710,000.00.
Where does the method come from?
The method follows: Your tax authority's rules and your tax adviser.
Can I rely on this calculator for a decision?
This is an estimate for general information, not tax advice. Tax rules depend on jurisdiction, year and personal circumstances, so check the official guidance or a qualified tax professional. For this calculator in particular: A flat-rate estimate only.
Related calculators
- Effective Corporate Tax Rate Calculator — Tax expense as a share of pre-tax income.
- Sales Tax Calculator — Add or remove sales tax at a rate you enter.
- VAT Calculator — Add or remove value-added tax at the rate you enter.
Sources
- Your tax authority's rules and your tax adviser
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.