Lottery Tax Calculator for New Jersey

See exactly how much you keep from a lottery jackpot after federal and state taxes. Enter any prize amount or start from tonight's Powerball and Mega Millions jackpots, and compare the lump-sum cash option against the 30-year annuity.

Prize amount

Tonight's jackpots

Or a round amount

Your state

Choosing a state opens its own calculator page.

Payout option

Lump sum taxes the cash option in a single year.

Take-home on a $86,700,000 cash option in New Jersey

Gross prize$86,700,000

Federal withholding (24%)−$20,808,000

New Jersey withholding (10.75%)−$9,320,250

Check you receive (after withholding)$56,571,750

You'll likely owe more at tax time

The lottery only withholds 24% for the IRS, but a jackpot pushes you into the top 37% federal bracket. The difference comes due when you file.

Additional federal owed at filing (to 37%)−$11,271,000

Estimated final take-home$45,300,750

See New Jersey's full Powerball tax breakdown (annuity and cash option) →See New Jersey's full Mega Millions tax breakdown (annuity and cash option) →

Lottery taxes in New Jersey

New Jersey taxes lottery winnings at 10.75%. Combined with the top federal rate of 37%, a jackpot winner here faces roughly 47.75% in tax on a cash prize. The lottery withholds 24% for the IRS up front, and the rest of the federal bill is due when you file.

Example cash-prize take-home in New Jersey

After the top 37% federal rate and 10.75% state tax.

Cash prize	Federal (37%)	New Jersey tax	Take-home
$1,000,000	−$370,000	−$107,500	$522,500
$10,000,000	−$3,700,000	−$1,075,000	$5,225,000
$100,000,000	−$37,000,000	−$10,750,000	$52,250,000

Figures are estimates using the top marginal federal rate; 24% is withheld up front and the rest is owed at filing. Annuity payouts are taxed differently year to year; use the calculator above for the full annuity schedule.

Frequently Asked Questions

Does New Jersey tax lottery winnings?

Yes. New Jersey taxes lottery prizes at 10.75%, on top of federal tax.

How much tax do you pay on lottery winnings in New Jersey?

Prizes over $5,000 have 24% withheld for federal tax up front, but a jackpot pushes you into the top 37% federal bracket, so more is owed at filing. New Jersey adds 10.75% in state tax, for a combined top rate of about 47.75%.

How much would you take home from a $1 million lottery prize in New Jersey?

After the top 37% federal rate and New Jersey's 10.75% state tax, a $1,000,000 cash prize leaves roughly $522,500. The lottery withholds 24% ($240,000) up front; the rest of the federal bill comes due when you file.

Is it better to take the lump sum or the annuity in New Jersey?

Both are taxed the same way in New Jersey: the lump sum (cash option) is taxed once in the year you claim it, while the annuity spreads 30 graduated payments over 29 years and is taxed each year. The annuity can keep more income in lower brackets year to year, but the lump sum gives you the full amount to invest now. This is an estimate, not financial advice. Talk to a tax professional before claiming a prize.

How much federal tax is withheld from lottery winnings?

The IRS requires 24% federal withholding on lottery and gambling winnings over $5,000. That is only the withholding; large jackpots are taxed at the top 37% marginal rate, so winners typically owe the difference when they file.

Estimates only. Federal figures use the mandatory 24% lottery withholding and the top 37% marginal bracket; your actual liability depends on your total income, deductions, and filing status. State figures use each state's top marginal or lottery-specific rate and exclude local taxes. Not tax advice. Annuity payments use the standard MUSL 5% escalation model. Consult a qualified tax professional before claiming a prize.