Delaware tax on lottery and gambling winnings
Delaware taxes gambling and lottery winnings as income, at rates up to 6.60%. On a $1,000,000 lottery prize to a single filer with no other income the state takes about $64,769, and the winner keeps about $615,231 after federal tax as well.
Delaware income tax brackets for 2026
| Rate | Single: taxable income | Married filing jointly: taxable income |
|---|---|---|
| 2.20% | over $2,000 | over $2,000 |
| 3.90% | over $5,000 | over $5,000 |
| 4.80% | over $10,000 | over $10,000 |
| 5.20% | over $20,000 | over $20,000 |
| 5.55% | over $25,000 | over $25,000 |
| 6.60% | over $60,000 | over $60,000 |
What to know
Delaware 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 Delaware tax lottery winnings?
Yes, as ordinary income at the state's 2026 rates, up to 6.60%.
How much tax is due on a $1 million prize in Delaware?
For a single filer with no other income, about $64,769 in state tax and $320,000 in federal tax, leaving about $615,231. 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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