A $1 million lottery prize after taxes, state by state
State tax
After about $320,000 of federal tax, a single filer keeps $680,000 of a $1,000,000 lottery prize in a state with no income tax on winnings, and $580,268 in Hawaii, where the state takes $99,732.
- $680,000kept with no state tax
- $99,732state tax in Hawaii
- $580,268kept in Hawaii
Federal and State Impact
Federal tax reduces the prize significantly before state rules apply. The lead shows the remaining amount after federal deductions. State taxes then reduce this figure further. The table below lists specific outcomes for different locations. It compares states with no income tax against those with higher rates. Hawaii shows the highest state deduction in this example. The difference between the highest and lowest state tax is substantial. Readers should check their specific residence to estimate their final total. These figures assume a single filer with no other income sources. Use the winnings tax calculator for precise inputs.
| State | State tax | Kept after all tax |
|---|---|---|
| Hawaii | 99,732 | 580,268 |
| Oregon | 96,955 | 583,044 |
| Minnesota | 91,298 | 588,702 |
| District of Columbia | 89,955 | 590,044 |
| Vermont | 81,157 | 598,843 |
| New Jersey | 74,576 | 605,424 |
| Maine | 70,383 | 609,616 |
| Wisconsin | 67,010 | 612,990 |
States Without Income Tax
Nine states do not levy a personal income tax on winnings. Residents in these areas keep the full amount remaining after federal tax. The table above shows this higher retention rate compared to taxed states. This applies regardless of where the ticket was purchased. The federal portion remains constant across all jurisdictions. State exemptions create the primary variation in final take-home amounts. Local taxes are not included in these calculations. This simplifies the comparison of state-level impacts on lottery prizes.
Specific State Rules
California and Pennsylvania do not tax their own lottery prizes. However, residents pay tax on winnings from other jurisdictions. This distinction affects where you buy tickets versus where you live. The table above reflects these specific rules. Hawaii imposes the highest state tax among the examples shown. North Dakota has the lowest among taxing states. These differences arise from varying state tax brackets and exemptions. The final amount depends on the interaction between federal and state laws.
Bracket Adjustments
New York and Connecticut adjust their lower tax brackets at high incomes. This reduces the benefit of progressive rates for large prizes. The real tax burden is higher than the simple table suggests. The table above provides a baseline estimate. Actual liability may vary based on these bracket phase-outs. These adjustments are specific to the current tax year rules. Readers should verify their specific situation against official guidelines. The estimates here serve as a general guide for planning purposes.
Questions
Which states have no income tax on lottery winnings?
Nine states do not levy a personal income tax on winnings. Residents keep the full amount remaining after federal tax. This applies regardless of where the ticket was purchased.
How does Hawaii tax lottery prizes?
Hawaii imposes the highest state tax among the examples shown. The state tax reduces the remaining amount further. The table above shows the final kept amount for Hawaii.
Do California and Pennsylvania tax lottery winnings?
They do not tax their own lottery prizes. However, residents pay tax on winnings from other jurisdictions. This distinction affects where you buy tickets versus where you live.
Are local taxes included in the estimates?
No, local taxes are not included in these calculations. The figures reflect only federal and state income tax impacts. Verify your local rules for a complete estimate.
Every figure on this page is computed by code from the 2026 federal and state brackets applied band by band and checked against a cumulative table. See the methodology.