2026 tax rules
What you keep from a win, after federal and state income tax
A $1,000,000 lottery prize to a single filer with no other income carries about $320,000 of federal income tax in 2026. The lottery withholds only $240,000, 24%, so roughly $80,000 more is due with the return, before any state tax.
Winnings tax calculator
Estimates with the 2026 federal brackets and the standard deduction, and each state's 2026 brackets and standard deduction. Local income taxes, credits and other deductions are left out. Not tax advice.
How a win is taxed
Gambling and lottery winnings are ordinary income. They are added to your other income for the year and taxed at your top rates, so the same prize costs more tax for someone who already earns well. The calculator shows the tax the win adds: your tax with the win minus your tax without it.
The payer may withhold part of the prize first. A lottery keeps back 24% of a prize over $5,000 for the IRS, but a large prize is taxed at up to 37%, so the rest is due when you file. Slots, keno and bingo have no regular withholding at all, even when a Form W-2G is issued. The 2026 federal rules explain the forms and thresholds.
Losses count less from 2026
From tax year 2026 only 90% of your gambling losses are deductible, and never more than your winnings, so someone who breaks even can still owe tax. Losses count only if you itemize deductions instead of taking the standard deduction. A player who won and lost $100,000 with $60,000 of other income pays about $5,092 of federal tax on the gambling, $2,200 more than under the 2025 rule.
State tax
Most states tax winnings as income too, from nothing in Texas or Florida to 13.3% in California on casino winnings above $1 million. See every state's tax on a $1,000,000 prize.
Questions
Do I pay tax on gambling winnings under $2,000?
Yes. Every gambling win is taxable income, whether or not you receive a Form W-2G. The $2,000 figure for 2026 is only the minimum at which the payer must report it.
Is the 24% withheld by the lottery all the tax I owe?
Not for a large prize. Withholding is a prepayment. Taxable income above $201,775 for a single filer ($403,550 for a married couple) is taxed at 32%, 35% and 37%, so for a large prize the difference is due with your return.
Can I deduct my losses?
Only if you itemize, only up to your winnings and, from 2026, only 90% of them. Keep a record of every session: date, place, amounts won and lost.
Which state taxes my prize?
Usually the state where you live, and sometimes also the state where you won, with a credit for tax paid there. The calculator assumes you live and play in the same state.
Won a jackpot? Compare the lump sum and the annuity
Enter the advertised jackpot and the cash value: see what each option leaves after federal and state tax, year by year.
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