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 ↗

The Best Lottery Tax Calculator

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.

Advertised jackpot29-yr annuity
$516M
Marketed as $516,000,000.
Almost nobody takes the annuity, and even if you did, the tax math barely changes.
What you actually keepafter taxes
$133,982,043
Lump-sum, in Alaska · Single
26.0% kept · 58.8% cash-option reduction · 15.2% federal + state taxes
StateAlaska
GamePowerball
Filing statusSingle
Single

Standard deduction: $16,100. All lottery income is taxed at your individual rate. This is the most common filing status for winners.

$27,593,957 surprise tax bill due next April. The IRS only withholds 24% upfront, but lottery wins push you into the top 37% bracket. The difference comes out of your pocket when you file, and most winners never see it coming.
You keep 26.0% · $134.0MCash-option reduction 58.8% · $303.4MFederal + state taxes 15.2% · $78.6M
Cash option
41%
$212.6M lump sum
Federal effective
37.0%
$78.6M owed
Alaska tax
0%
No state tax
Jackpot odds
1 in 292M
Per single ticket
Itemized breakdown

From Advertised to Deposit, Line by Line.

Every row updates as you change the controls above. Sources cited inline.

Advertised jackpot
Paid as an annuity over 29 years. Fewer than 5% of winners pick this option.Lottery commission
$516,000,000
Lump-sum cash (41%)
The cash value of the annuity, paid as a single check on day one.Lottery cash option
$212,600,000
Federal withholding (24%)
The IRS takes this off the top before you ever see the money.IRS Publication 525
−$51,024,000
Additional federal tax owed in April
Big lottery wins push you into the 37% top bracket. Your effective federal rate is 37.0%. Due April 15.IRS 2026 brackets
−$27,593,957
Alaska state tax (0%)
No state income tax on lottery winnings. This is one of the no-tax states.State revenue department
$0
What you actually take home
25.97% of the advertised jackpot.Net deposit
$133,982,043
Browse by state

All 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

Click any tile to see that state's full breakdown. Green = no state lottery tax. Red = top-bracket states.

Alabama
5.00%
PB jackpots won: Not soldMM jackpots won: Not sold
Alabama does not sell Powerball or Mega Millions tickets
Alaska
No tax ✓
PB jackpots won: Not soldMM jackpots won: Not sold
Alaska does not sell Powerball or Mega Millions tickets
Arizona
2.50%
PB jackpots won: 5MM jackpots won: 3
Arkansas
3.90%
PB jackpots won: 2MM jackpots won: 1
California
No tax ✓
PB jackpots won: 17MM jackpots won: 26
California law exempts California Lottery winnings, including Powerball and Mega Millions, from state income tax
Colorado
4.40%
PB jackpots won: 2MM jackpots won: 0
Connecticut
6.99%
PB jackpots won: 3MM jackpots won: 0
Delaware
6.60%
PB jackpots won: 4MM jackpots won: 0
Delaware allows lottery winners to claim any prize anonymously (state law since 1988), one of the few states to do so
Florida
No tax ✓
PB jackpots won: 17MM jackpots won: 6
Georgia
4.99%
PB jackpots won: 5MM jackpots won: 6
Georgia reduced its flat income tax rate to 4.99% for 2026
Hawaii
11.00%
PB jackpots won: Not soldMM jackpots won: Not sold
Hawaii does not sell Powerball or Mega Millions tickets
Idaho
5.30%
PB jackpots won: 0MM jackpots won: 1
Illinois
4.95%
PB jackpots won: 3MM jackpots won: 12
Indiana
2.95%
PB jackpots won: 4MM jackpots won: 2
Iowa
3.80%
PB jackpots won: 3MM jackpots won: 0
Kansas
5.58%
PB jackpots won: 3MM jackpots won: 1
Kentucky
3.50%
PB jackpots won: 2MM jackpots won: 0
Louisiana
3.00%
PB jackpots won: 4MM jackpots won: 0
Maine
9.15%
PB jackpots won: 0MM jackpots won: 1
Includes the 2% surtax on income over $1M, effective 2026 (LD 2212); a jackpot lump sum clears that threshold
Maryland
9.50%
PB jackpots won: 3MM jackpots won: 4
6.5% state top rate for 2026 plus 2.25% to 3.30% local county income tax; the Lottery withholds 9.5% from residents and 8.75% from non-residents
Massachusetts
9.00%
PB jackpots won: 4MM jackpots won: 4
Includes the 4% surtax on income over $1M (the "millionaire tax")
Michigan
4.25%
PB jackpots won: 6MM jackpots won: 9
Minnesota
9.85%
PB jackpots won: 2MM jackpots won: 1
Mississippi
4.00%
PB jackpots won: 0MM jackpots won: 0
Missouri
4.70%
PB jackpots won: 7MM jackpots won: 2
Montana
5.65%
PB jackpots won: 1MM jackpots won: 0
Nebraska
4.55%
PB jackpots won: 1MM jackpots won: 0
Nevada
No tax ✓
PB jackpots won: Not soldMM jackpots won: Not sold
Nevada does not sell Powerball or Mega Millions tickets
New Hampshire
No tax ✓
PB jackpots won: 2MM jackpots won: 1
New Jersey
10.75%
PB jackpots won: 12MM jackpots won: 10
New Mexico
5.90%
PB jackpots won: 0MM jackpots won: 0
New York
10.90%
PB jackpots won: 13MM jackpots won: 23
NYC residents owe ~3.88% additional city tax
North Carolina
3.99%
PB jackpots won: 4MM jackpots won: 2
North Dakota
2.50%
PB jackpots won: 0MM jackpots won: 0
Ohio
2.75%
PB jackpots won: 5MM jackpots won: 8
Oklahoma
4.50%
PB jackpots won: 0MM jackpots won: 0
Oregon
9.90%
PB jackpots won: 3MM jackpots won: 0
Pennsylvania
3.07%
PB jackpots won: 7MM jackpots won: 3
Rhode Island
5.99%
PB jackpots won: 2MM jackpots won: 1
South Carolina
5.21%
PB jackpots won: 1MM jackpots won: 1
Top rate cut to 5.21% for 2026 (H.4216), down from 6%
South Dakota
No tax ✓
PB jackpots won: 0MM jackpots won: 0
Tennessee
No tax ✓
PB jackpots won: 6MM jackpots won: 2
Texas
No tax ✓
PB jackpots won: 4MM jackpots won: 7
Utah
4.50%
PB jackpots won: Not soldMM jackpots won: Not sold
Utah does not sell Powerball or Mega Millions tickets
Vermont
8.75%
PB jackpots won: 1MM jackpots won: 0
Virginia
5.75%
PB jackpots won: 2MM jackpots won: 4
Washington
No tax ✓
PB jackpots won: 2MM jackpots won: 3
Washington DC
10.75%
PB jackpots won: 0MM jackpots won: 0
West Virginia
4.58%
PB jackpots won: 2MM jackpots won: 0
Top rate cut ~5% to 4.58% for 2026 (SB 392), retroactive to Jan 1
Wisconsin
7.65%
PB jackpots won: 4MM jackpots won: 1
Wyoming
No tax ✓
PB jackpots won: 0MM jackpots won: 0
Top marginal state lottery tax rates · 2026 · Source: state revenue departments + Tax Foundation
Jackpot-winning tickets sold since Jan. 31, 2010. Snapshot through Aug. 13, 2026. Raw totals do not account for population, ticket sales, or participation start dates.

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

Sources: Alaska Department of Revenue, Tax Division

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.

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