Lottery winnings · California
California lottery tax calculator
California taxes wages but not the prize: California's own words are "We do not tax winnings from the California Lottery, including SuperLotto, Powerball, and Mega Millions." California Lottery prizes only. Winnings from another state’s lottery, or from other gambling, are still California income for a California resident.
Lump sum: enter the cash option, not the advertised jackpot. Annuity: enter one year's payment.
The prize is stacked on top of this. It decides which bracket the winnings land in — and whether the 24% withheld was too much or too little.
What you keep after taxes
20.7% of the prize goes in tax · top federal rate 22.0%
- Prize
- $50,000
- Federal income tax on it
- −$10,350
- California income tax on it
- −$0
- You keep
- $39,650
The cheque at claim
- Federal withheld (24.0% — proceeds over $5,000)
- −$12,000
- California withheld (below the state's line)
- −$0
- Cheque
- $38,000
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What is withheld in California
Federal first, everywhere: on proceeds over $5,000 the payer withholds 24% of the whole amount — not the part over the line — and reports it on Form W-2G. That is a prepayment. The tax is settled on your return.
Nothing is withheld for California at claim, and nothing is owed later — the prize is exempt, not merely un-withheld.
Worked amounts
Three prizes, cheque and bill
| Prize | Cheque at claim | Federal tax | California tax | You keep |
|---|---|---|---|---|
| $10,000 | $7,600 | −$1,550 | −$0 | $8,450 |
| $100,000 | $76,000 | −$22,114 | −$0 | $77,886 |
| $1,000,000 | $760,000 | −$337,180 | −$0 | $662,820 |
Single filer with $60,000 of other income for the year.
Questions
How much tax is taken from lottery winnings in California?
Two layers. Federal: the payer withholds 24% on proceeds over $5,000, and the prize is then taxed on your return as ordinary income at the 2026 rates — up to 37%. State: California taxes wages but not the prize: California's own words are "We do not tax winnings from the California Lottery, including SuperLotto, Powerball, and Mega Millions." California Lottery prizes only. Winnings from another state’s lottery, or from other gambling, are still California income for a California resident. Nothing is withheld for California at claim, and nothing is owed later — the prize is exempt, not merely un-withheld.
Does California tax lottery winnings?
California taxes wages but not the prize: California's own words are "We do not tax winnings from the California Lottery, including SuperLotto, Powerball, and Mega Millions." California Lottery prizes only. Winnings from another state’s lottery, or from other gambling, are still California income for a California resident.
What will the cheque be on a $100,000 prize in California?
About $76,000 — the prize less $24,000 federal withholding. The tax actually owed for a single filer earning $60,000 elsewhere is about $22,114, so what you keep is $77,886. Your own figure depends on your other income and filing status.
Is the withholding the same as the tax?
No. Withholding is a prepayment at a flat rate the IRS sets for everyone. The tax is worked out on your return from your total income. If your bracket is above 24% you owe the difference in April; if it is below, the excess comes back as a refund. On a jackpot the gap is large — roughly a third of the federal tax is still owed after the 24% is taken.
Where these figures come from
- IRS Instructions for Forms W-2G and 5754 (Rev. January 2026) — regular gambling withholding, lotteries — read 2026-08-26
- California Franchise Tax Board — Gambling (California lottery winnings are not taxed by California) — read 2026-08-28
- California Withholding Schedules for 2026 — Method B, Exact Calculation Method (EDD) — read 2026-08-28
- EDD — 2026 California payroll tax rates (SDI 1.3%, no taxable wage limit) — read 2026-08-28
Federal tax owed uses the 2026 rate schedules and standard deduction from Form 1040-ES. California tax uses the same rules as our California paycheck calculator. Not modelled: annuity maths, itemised deductions, local income taxes, non-resident rules. Estimates only — not tax advice.
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