Lottery winnings · Pennsylvania
Pennsylvania lottery tax calculator
Pennsylvania taxes lottery winnings as ordinary income at its flat 3.07%, after the same allowance or deduction that applies to wages.
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
23.8% of the prize goes in tax · top federal rate 22.0%
- Prize
- $50,000
- Federal income tax on it
- −$10,350
- Pennsylvania income tax on it
- −$1,535
- You keep
- $38,115
The cheque at claim
- Federal withheld (24.0% — proceeds over $5,000)
- −$12,000
- Pennsylvania withheld (3.1%)
- −$1,535
- Cheque
- $36,465
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At the counter
What is withheld in Pennsylvania
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.
At claim, 3.07% is withheld for Pennsylvania on prizes greater than $5,000 — the state's own words: "The Pennsylvania Lottery will automatically withhold PA personal income tax on prizes greater than $5,000 claimed after July 12, 2016."
Worked amounts
Three prizes, cheque and bill
| Prize | Cheque at claim | Federal tax | Pennsylvania tax | You keep |
|---|---|---|---|---|
| $10,000 | $7,293 | −$1,550 | −$307 | $8,143 |
| $100,000 | $72,930 | −$22,114 | −$3,070 | $74,816 |
| $1,000,000 | $729,300 | −$337,180 | −$30,700 | $632,120 |
Single filer with $60,000 of other income for the year.
Questions
How much tax is taken from lottery winnings in Pennsylvania?
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: Pennsylvania taxes lottery winnings as ordinary income at its flat 3.07%, after the same allowance or deduction that applies to wages. At claim, 3.07% is withheld for Pennsylvania on prizes greater than $5,000 — the state's own words: "The Pennsylvania Lottery will automatically withhold PA personal income tax on prizes greater than $5,000 claimed after July 12, 2016."
Does Pennsylvania tax lottery winnings?
Pennsylvania taxes lottery winnings as ordinary income at its flat 3.07%, after the same allowance or deduction that applies to wages.
What will the cheque be on a $100,000 prize in Pennsylvania?
About $72,930 — the prize less $24,000 federal withholding and $3,070 Pennsylvania withholding. The tax actually owed for a single filer earning $60,000 elsewhere is about $25,184, so what you keep is $74,816. 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
- PA Department of Revenue — Lottery Winnings (3.07% applies to PA Lottery cash prizes; withheld on prizes greater than $5,000) — read 2026-08-26
- PA Department of Revenue — Employer Withholding — read 2026-08-22
- PA Department of Revenue — Personal Income Tax Rates — read 2026-08-22
Federal tax owed uses the 2026 rate schedules and standard deduction from Form 1040-ES. Pennsylvania tax uses the same rules as our Pennsylvania paycheck calculator. Not modelled: annuity maths, itemised deductions, local income taxes, non-resident rules. Estimates only — not tax advice.
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