Delaware State Tax on Lottery Winnings
Free Delaware lottery tax calculator for Powerball and Mega Millions. Delaware taxes lottery winnings at 6.60% (top marginal rate).
Current Powerball $516M jackpot, single filer
$119.95M
Actual take-home: 23.2% of what they advertise
Note: Delaware allows lottery winners to claim any prize anonymously (state law since 1988), one of the few states to do so
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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10 states · no lottery taxHighest: Hawaii, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Washington DC
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What to Know Before Claiming a Jackpot in Delaware
Delaware is one of the most privacy friendly states for a jackpot winner. State law lets every Delaware Lottery winner remain anonymous, with no dollar threshold or written request needed, which is rare among the states that tax lottery winnings at all. The top state tax rate is 6.6% on income above $60,000, and that rate applies to the full lump sum. You have a full year to claim the prize, but a Powerball or Mega Millions jackpot takes about two weeks to process once claimed, longer than a smaller prize, so plan for that gap between claiming and receiving funds.
- State tax rate (2026)
- 6.6% top rate, on income above $60,000
- Deadline to claim
- One year from the draw date
- Anonymity
- Automatic for every winner. Delaware law allows all Lottery winners to remain anonymous, with no request or minimum prize required
- Processing time
- About two weeks for a Powerball, Mega Millions, or Lotto America jackpot, versus 3 to 5 business days for smaller prizes
- What proceeds fund
- The state General Fund, which pays for education, public safety, parks, and health and social services
Sources: Delaware Division of Revenue: Personal Income Tax FAQs · Delaware Lottery: Claim Prizes · Delaware Lottery: FAQs · Delaware Lottery: Where the Money Goes
Delaware Lottery Winnings Tax Overview
The Delaware state tax on lottery winnings is 6.6%, a moderate rate near the middle of the 41 states that tax lottery payouts. Delaware ranks number 13 in that group. If you win a Powerball or Mega Millions prize in Delaware, the federal lottery tax of up to 37% applies on top of the state rate, and both reduce your lump sum cash option before the money ever reaches you. The Delaware lottery tax calculator above runs the full math for the current jackpot.
How the Delaware Lottery Payout Calculator Works
In Delaware, the lottery payout calculation begins with the lump sum cash option, which equals roughly 45% of the advertised jackpot. The IRS withholds 24% federal lottery tax at the moment of payout, but a Powerball or Mega Millions prize pushes the winner into the 37% top federal bracket, so additional federal tax comes due at filing. On top of that, Delaware taxes lottery winnings at 6.6% of the full lump sum. The lottery payout calculator above runs all of this math for you, using IRS 2026 brackets and the top marginal Delaware lottery tax rate. One Delaware specific detail to factor in: Delaware allows lottery winners to claim any prize anonymously (state law since 1988), one of the few states to do so.
How Delaware Compares to Other Lottery Tax States
Delaware's 6.6% lottery tax rate ranks number 13 out of 41 taxed states. States with a higher lottery tax rate than Delaware include Wisconsin and Connecticut. States with a lower rate include Rhode Island and New Mexico. For context, 10 states collect no lottery tax at all, which means a Powerball or Mega Millions winner in one of those states keeps an extra 6.6% of their lump sum compared to a winner in Delaware.
Delaware Lottery Tax FAQs
What is the Delaware state tax on lottery winnings?
Delaware taxes lottery winnings at a top marginal rate of 6.6%. This rate applies to the lump sum cash option from any Powerball or Mega Millions prize, and it is paid in addition to the federal lottery tax of up to 37% at the highest bracket. The lottery tax calculator above shows the exact dollar amount for any current jackpot.
Should I take the lump sum or annuity in Delaware?
Most Powerball and Mega Millions winners choose the lump sum cash option. In Delaware, both options face the same 6.6% state lottery tax rate, but the annuity spreads the tax across 30 years while the lump sum delivers the full cash value now. 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 Delaware 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. Delaware also withholds state tax at or near the 6.6% top rate at the moment of payout. The remaining federal balance, up to the 37% top bracket, then comes due in April when the winner files a federal return.
Can you stay anonymous after winning the lottery in Delaware?
Yes, and it is automatic. Delaware state law allows every Lottery winner to remain anonymous, with no minimum prize amount and no written request required, unlike most states that only protect large prizes or require the winner to opt in. A Powerball or Mega Millions jackpot winner in Delaware can keep their name out of the public record simply by claiming under the state's standard process.