Alaska State Tax on Lottery Winnings
Free Alaska lottery tax calculator for Powerball and Mega Millions. Alaska has no state income tax on lottery winnings, but you still owe federal.
Current Powerball $516M jackpot, single filer
$133.98M
Actual take-home: 26.0% of what they advertise
Note: Alaska does not sell Powerball or Mega Millions tickets
State Lottery
No state lottery
Alaska does not operate a state lottery
State Budget FY2024
$16.9B
~$22,838 per resident ↗
What You'd Actually Take Home.
Lottery Tax Calculator for Powerball, Mega Millions, and Every State.
Pick your game, state, and filing status to see what you'd really keep after taxes.
Standard deduction: $16,100. All lottery income is taxed at your individual rate. This is the most common filing status for winners.
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Browse by stateAll 50 States + DC, Ranked by Lottery Tax Bite.
10 states · no lottery taxHighest: Hawaii, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Washington DC
All 50 States + DC, Ranked by Lottery Tax Bite.
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What to Know Before Claiming a Jackpot in Alaska
Alaska has no state income tax and no state lottery, and with no neighboring state, a resident can only buy a Powerball or Mega Millions ticket while traveling. That makes the state side of the tax math simple. Alaska adds nothing. A resident who wins on a ticket bought in another state owes the federal tax plus whatever that state withholds from non-residents, and Alaska imposes no income tax of its own on top.
- State tax rate (2026)
- None. Alaska has no state income tax
- State lottery
- None. Alaska is one of five states with no lottery, and it has no bordering state, so residents play only when traveling
- Tax on an out-of-state win
- Federal tax plus any non-resident tax withheld by the state where the ticket was bought. Alaska adds nothing
- Anonymity
- Determined by the state where the ticket is bought and claimed, not by Alaska
Alaska Lottery Winnings Tax Overview
The Alaska state tax on lottery winnings is 0%. Winning a Powerball or Mega Millions jackpot in Alaska is one of the most tax friendly outcomes any lottery winner can hope for. Alaska does not collect state income tax on lottery winnings, joining 9 other no tax states such as California, Florida, and Nevada. The federal lottery tax still applies, but no additional Alaska state tax comes out of your lump sum cash option. The Alaska lottery tax calculator above shows your real take home for the current jackpot.
How the Alaska Lottery Payout Calculator Works
For a Alaska resident who wins Powerball or Mega Millions, the lottery payout calculation starts with the lump sum cash option, which equals roughly 45% of the advertised jackpot. The IRS withholds 24% federal lottery tax at the source on the day of payout. At tax filing, the rest of the federal tax kicks in because lottery winnings push the winner into the top 37% bracket. Since Alaska does not collect state income tax on lottery winnings, the final take home equals the lump sum minus the full federal lottery tax, with no additional state withholding line. One Alaska specific detail to factor in: Alaska does not sell Powerball or Mega Millions tickets.
How Alaska Compares to Other Lottery Tax States
Alaska sits alongside 9 other no tax states for lottery winners: California, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Compared to high tax states like New York or New Jersey, where lottery winners can lose more than 10% of their lump sum to the state tax line alone, Alaska leaves the entire lump sum, after the federal lottery tax, in the winner's hands. This makes Alaska one of the most favorable jurisdictions in the country to claim a Powerball or Mega Millions prize.
Alaska Lottery Tax FAQs
Does Alaska tax lottery winnings?
No. Alaska does not collect state income tax on lottery winnings. Powerball and Mega Millions winners in Alaska only owe the federal lottery tax, which can reach 37% at the top bracket. The lump sum cash option arrives without any Alaska withholding line on top of the federal portion.
Should I take the lump sum or annuity in Alaska?
Most Powerball and Mega Millions winners choose the lump sum cash option. In Alaska, neither choice changes the state tax bill because Alaska does not tax lottery winnings. The lottery payout calculator above shows the lump sum after taxes; the annuity choice is a separate financial decision based on personal goals and investment return assumptions.
Does Alaska withhold tax on a lottery payout before payment?
The IRS withholds 24% federal lottery tax on any lottery prize above $5,000 before the winner ever sees the check. Alaska adds no state withholding line because Alaska does not tax lottery winnings, so the only further federal balance comes due in April when the winner files a federal return.
Does Alaska tax lottery winnings?
No. Alaska has no state income tax, so it does not tax lottery winnings, whether the ticket was bought on a trip to another state or won online through a legal courier. A winner still owes federal tax, and the state where the ticket was purchased may withhold its own tax from a non-resident.