Where a $1 million lottery win goes furthest: every state's tax rate compared

A $1 million scratch-off win is not worth the same everywhere, where you bought the ticket decides how much you have to pay in taxes. Federal tax is the same in every state and for a $1 million prize it will default to the top federal rate of 37%. The state's cut runs from no state taxes at all to 10.9% and beyond, and the figures below come from the same verified state tax table that powers our lottery tax calculator, current as of this writing on August 19, 2026.

Ten states take nothing at all. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no state income tax, and California is the interesting one: it taxes income at up to 13.3%, but exempts California Lottery winnings under its own tax code. Win $1 million on the lottery in Los Angeles and the state takes nothing, but if you win an out-of-state lottery while living there and it is taxed as ordinary income.

How to read the table above. The take-home figures apply the top 37% federal rate to the whole prize. State rates are the top marginal rate that applies to a $1 million prize. Maryland also levies county income taxes that are not included here, and Puerto Rico is left out because federal tax treatment there works differently. Alabama, Alaska, Hawaii, Nevada and Utah run no lottery at all, and North Dakota and Wyoming sell draw-game tickets without scratch-offs, so those five and two are listed for residency purposes rather than as places to buy a ticket. So if you're an Alabama resident and buy a winning ticket in Georgia for example, you may have to pay state taxes in both Alabama and Georgia. That is why many Alabama residents purchase lottery tickets in Tennessee as Tennessee has no state income tax.

The take-home column assumes the full 37% federal bracket, which is where a $1 million prize puts most winners, so the difference between a Texas winner and a New York City winner is close to $148,000 on identical winnings. Withholding at claim time is also lower than the final bill, as lotteries withhold 24% federal plus whatever the state withholds, and the extra 13% difference for federal tax comes due the following April, which is the part that surprises people most and the reason we built the calculator to show both numbers.

Massachusetts adds its 4% millionaire surtax on income over about $1 million, so a big enough prize pays 9% rather than the base 5%. And a handful of states tax residents on winnings from anywhere, so moving the ticket does not move the bill. The full mechanics are in how lottery winnings are taxed, and the calculator handles any prize amount, lump sum or annuity, in every state.