You must pay federal tax on all lottery winnings. Whether or not you’re also required to pay state tax on your lottery winnings depends on where you live. The same goes for the tax rate you’re required to pay.

Some states, like New York, have a different tax rate for lottery winnings, while other states do not tax lottery winnings at all.

States with no or limited state lottery tax:

  • Alaska
  • California
  • Florida
  • Nevada
  • New Hampshire
  • South Dakota
  • Tennessee
  • Texas
  • Washington
  • Wyoming

Some states do not tax their state residents on their own state lottery winnings but may tax winnings from other state lotteries. For example, California does not tax California state lottery winnings but does tax lottery winnings from other states.

Wondering how winning the lottery will impact your state and federal tax situation? Want to make sure you take advantage of every credit, deduction, and dollar you can? Jackson Hewitt is open, and our Tax Pros are ready to help. Book your appointment today.

Sharon Brucker, CPA Senior Tax Research Analyst Published on: August 08, 2025
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*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.