Lotto America Tax Calculator

The Tax Calculator helps you to work out how much cash you will receive on your Lotto America prize once federal and state taxes have been deducted. You just need to enter details of your prize amount and where you purchased your ticket. Below the Calculator, you can learn more about federal tax and the local tax rates in each participating state.

There have been some changes in how you can play Lotto America and claim prizes in Virginia due to the Coronavirus pandemic. Check out our dedicated Coronavirus Updates page for more details.

Using the Prize Calculator

To calculate your final payout, follow the steps below:

The calculation will show you how much has been deducted in federal and state tax to leave you with the final payout value.

Disclaimer: Please note that the ‘Lump Sum Reduction’ rate of 37.2 percent is the average difference between the advertised annuity prize and the value of the cash option. This means that the actual final cash value may vary slightly from that shown.

State and Federal Tax

If you win a prize of more than $5,000, there will be an initial 24 percent withholding for federal tax. If you win the jackpot you are highly likely to move into the top federal tax rate and your prize will be subject to a 37 percent withholding, whether you select the cash lump sum or the annuity.

The cash figure represents the jackpot fund on the day of the drawing, while the larger annuity value (the one that is advertised ahead of the drawing) is how much you would receive pre-tax after the cash sum has been invested over 29 years. Find out more about how the Lotto America jackpot works.

For prizes between $600 and $5,000, you do not owe any federal tax but you are still required to report your winnings on a federal income tax form.

As well as federal withholding, you will also owe state taxes on prizes above $5,000 in most participating jurisdictions. The only states which do not tax prizes are South Dakota and Tennessee. Here are the tax rates for the participating states:

State Taxes on Lotto America Payouts
State Tax Percentage
Delaware 6.6%
Idaho 7.4%
Iowa 5%
Kansas 5%
Maine 5%
Minnesota 7.25%
Montana 6.9%
New Mexico 6%
North Dakota 2.9%
Oklahoma 4%
South Dakota 0%
Tennessee 0%
West Virginia 6.5%