California tax on lottery and gambling winnings

California does not tax prizes of its own state lottery, so a $1,000,000 California Lottery prize to a single filer keeps about $680,000 after about $320,000 of federal tax. Casino, sports betting and other gambling winnings are taxed as income at rates up to 13.30%.

California income tax brackets for 2026

California income tax brackets for 2026 (Tax Foundation)
RateSingle: taxable incomeMarried filing jointly: taxable income
1.00%over $0over $0
2.00%over $11,079over $22,158
4.00%over $26,264over $52,528
6.00%over $41,452over $82,904
8.00%over $57,542over $115,084
9.30%over $72,724over $145,448
10.30%over $371,479over $742,958
11.30%over $445,771over $891,542
12.30%over $742,953over $1,000,000
13.30%over $1,000,000over $1,485,906

What to know

California does not tax California Lottery prizes; other gambling winnings are taxable.

California taxes its residents on winnings from anywhere. If you won in another state as a non-resident, that state may tax the prize too, and your home state usually gives a credit for it. The federal tax is the same everywhere: see the 2026 federal rules, or compare every state.

Questions

Does California tax lottery winnings?

Not prizes of the California Lottery. Other gambling winnings are taxed as income at rates up to 13.30%.

How much tax is due on a $1 million prize in California?

For a single filer with no other income, about $0 in state tax and $320,000 in federal tax, leaving about $680,000. The federal withholding of 24% covers only part of it.

State brackets from the Tax Foundation, federal from the IRS, 2026. Estimates, not tax advice. Methodology.

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