Lottery Tax Calculator for Washington

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 Washington

Gross prize$86,700,000

Federal withholding (24%)−$20,808,000

Washington state taxNo tax on lottery prizes

Check you receive (after withholding)$65,892,000

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$54,621,000

Washington has no state income tax. The 7% capital gains tax does not apply to lottery winnings.

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

Lottery taxes in Washington

Washington 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.

Washington has no state income tax. The 7% capital gains tax does not apply to lottery winnings.

Example cash-prize take-home in Washington

After the top 37% federal rate (no state tax).

Cash prize	Federal (37%)	Washington 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

Does Washington tax lottery winnings?

No. Washington does not tax lottery winnings, so you only owe federal tax. Washington has no state income tax. The 7% capital gains tax does not apply to lottery winnings.

How much tax do you pay on lottery winnings in Washington?

Prizes over $5,000 have 24% withheld for federal tax up front, and a jackpot pushes you into the top 37% federal bracket, so more is owed at filing. Washington charges no state tax on lottery prizes, so 37% federal is the full top rate.

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

After the top 37% federal rate (with no Washington state tax), a $1,000,000 cash prize leaves roughly $630,000. 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 Washington?

Both are taxed the same way: 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.