Lottery winnings · New York
New York lottery tax calculator
New York taxes lottery winnings as ordinary income under its graduated schedule — the prize is stacked on your other income, so the rate depends on the total.
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
30.7% of the prize goes in tax · top federal rate 22.0%
- Prize
- $50,000
- Federal income tax on it
- −$10,350
- New York income tax on it
- −$4,995
- You keep
- $34,655
The cheque at claim
- Federal withheld (24.0% — proceeds over $5,000)
- −$12,000
- New York withheld (rule not transcribed yet)
- —
- Cheque
- $38,000
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At the counter
What is withheld in New York
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.
New York may also withhold state tax at the counter on larger prizes. That figure is not on this page yet, so the at-claim line is blank — what you see is the New York tax you will owe on the prize, not what is taken at the window.
Worked amounts
Three prizes, cheque and bill
| Prize | Cheque at claim | Federal tax | New York tax | You keep |
|---|---|---|---|---|
| $10,000 | $7,600* | −$1,550 | −$961 | $7,490 |
| $100,000 | $76,000* | −$22,114 | −$10,860 | $67,026 |
| $1,000,000 | $760,000* | −$337,180 | −$116,770 | $546,050 |
Single filer with $60,000 of other income for the year. * Federal withholding only — the New York at-claim figure is not on this page yet, so the real cheque may be smaller.
Questions
How much tax is taken from lottery winnings in New York?
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: New York taxes lottery winnings as ordinary income under its graduated schedule — the prize is stacked on your other income, so the rate depends on the total. New York may also withhold state tax at the counter on larger prizes. That figure is not on this page yet, so the at-claim line is blank — what you see is the New York tax you will owe on the prize, not what is taken at the window.
Does New York tax lottery winnings?
New York taxes lottery winnings as ordinary income under its graduated schedule — the prize is stacked on your other income, so the rate depends on the total.
What will the cheque be on a $100,000 prize in New York?
About $76,000 — the prize less $24,000 federal withholding. The tax actually owed for a single filer earning $60,000 elsewhere is about $32,974, so what you keep is $67,026. 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
- NYS-50-T-NYS (1/26), New York State Withholding Tax Tables and Methods — Table A, Method II annual schedule, Method III — read 2026-08-28
- NYS-50-T-NYC (1/26), New York City Withholding Tax Tables and Methods — read 2026-08-28
- NYS-50-T-Y (1/26), Yonkers Withholding Tax Tables and Methods — resident surcharge 16.75%, nonresident earnings tax 0.5% — read 2026-08-28
- Form IT-2104 (2026), Employee’s Withholding Allowance Certificate — the zero-allowance note — read 2026-08-28
- New York State Paid Family Leave — 2026 contribution 0.432% of gross wages, capped at $411.91 a year — read 2026-08-28
Federal tax owed uses the 2026 rate schedules and standard deduction from Form 1040-ES. New York tax uses the same rules as our New York paycheck calculator. Not modelled: annuity maths, itemised deductions, local income taxes, non-resident rules. Estimates only — not tax advice.
Other states
Or start with the lottery tax calculator to compare the federal cheque, final tax bill and every state from one place.