New Jersey tax on lottery and gambling winnings
New Jersey taxes gambling and lottery winnings as income, at rates up to 10.75%. On a $1,000,000 lottery prize to a single filer with no other income the state takes about $74,576, and the winner keeps about $605,424 after federal tax as well.
New Jersey income tax brackets for 2026
| Rate | Single: taxable income | Married filing jointly: taxable income |
|---|---|---|
| 1.40% | over $0 | over $0 |
| 1.75% | over $20,000 | over $20,000 |
| 3.50% | over $35,000 | over $50,000 |
| 5.53% | over $40,000 | over $70,000 |
| 6.37% | over $75,000 | over $80,000 |
| 8.97% | over $500,000 | over $150,000 |
| 10.75% | over $1,000,000 | over $500,000 |
What to know
New Jersey 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 New Jersey tax lottery winnings?
Yes, as ordinary income at the state's 2026 rates, up to 10.75%.
How much tax is due on a $1 million prize in New Jersey?
For a single filer with no other income, about $74,576 in state tax and $320,000 in federal tax, leaving about $605,424. 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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