Lottery Tax Calculator for Tennessee
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.
Choosing a state opens its own calculator page.
Lump sum taxes the cash option in a single year.
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.
Lottery taxes in Tennessee
Tennessee does not tax lottery winnings, so a jackpot is taxed at the federal level only. The lottery withholds 24% up front, but because a large prize lands in the top 37% bracket, the balance is due at filing, leaving 37% as the effective top rate on a cash prize.
Tennessee does not tax lottery winnings. The state previously taxed dividends and interest (Hall Tax), but that was fully repealed in 2021. Lottery prizes were never subject to the Hall Tax.
Example cash-prize take-home in Tennessee
After the top 37% federal rate (no state tax).
| Cash prize | Federal (37%) | Tennessee tax | Take-home |
|---|---|---|---|
| $1,000,000 | −$370,000 | $0 | $630,000 |
| $10,000,000 | −$3,700,000 | $0 | $6,300,000 |
| $100,000,000 | −$37,000,000 | $0 | $63,000,000 |
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
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.