Hawaii State Tax on Lottery Winnings
Free Hawaii lottery tax calculator for Powerball and Mega Millions. Hawaii taxes lottery winnings at 11.00% (top marginal rate).
Current Powerball $516M jackpot, single filer
$110.60M
Actual take-home: 21.4% of what they advertise
Note: Hawaii does not sell Powerball or Mega Millions tickets
State Lottery
No state lottery
Hawaii does not operate a state lottery
State Budget FY2024
$20.0B
~$13,889 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.
Click any tile to see that state's full breakdown. Green = no state lottery tax. Red = top-bracket states.
What to Know Before Claiming a Jackpot in Hawaii
Hawaii has the highest state income tax rate in the country, 11% at the top, and no state lottery. Hawaii and Utah are the only states that ban nearly all gambling. With no neighboring state, a resident can only play a US lottery while on the mainland. The tax still follows them home: Hawaii taxes residents on all income, including a lottery prize won on a mainland ticket, at up to 11%, with a credit for income tax paid to the other state. A ticket bought where the prize is not taxed leaves the full Hawaii bill.
- State tax rate (2026)
- 11% top rate, the highest in the country, applied to a resident's out-of-state lottery winnings
- State lottery
- None. Hawaii bans nearly all gambling and has no bordering state, so residents can only play while on the mainland
- Tax on an out-of-state win
- Hawaii taxes residents on the winnings as income at up to 11%, with a credit for income tax paid to the state where the ticket was bought
- Anonymity
- Determined by the state where the ticket is bought and claimed, not by Hawaii
Sources: Hawaii Department of Taxation · Tax Foundation: Hawaii (2026 top rate 11%)
Hawaii Lottery Winnings Tax Overview
The Hawaii state tax on lottery winnings is 11%, one of the heaviest lottery tax rates in the country. This top marginal rate ranks number 1 out of 41 states that levy a lottery tax. A Powerball or Mega Millions winner in Hawaii loses a larger share of the advertised jackpot to the state tax line than residents of most other places, before the federal lottery tax of up to 37% even applies. The Hawaii lottery tax calculator above shows the exact take home for any current jackpot.
How the Hawaii Lottery Payout Calculator Works
In Hawaii, 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, Hawaii taxes lottery winnings at 11% 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 Hawaii lottery tax rate. One Hawaii specific detail to factor in: Hawaii does not sell Powerball or Mega Millions tickets.
How Hawaii Compares to Other Lottery Tax States
Hawaii's 11% lottery tax rate ranks number 1 out of 41 taxed states. States with a lower rate include New York and New Jersey. 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 11% of their lump sum compared to a winner in Hawaii.
Hawaii Lottery Tax FAQs
What is the Hawaii state tax on lottery winnings?
Hawaii taxes lottery winnings at a top marginal rate of 11%. 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 Hawaii?
Most Powerball and Mega Millions winners choose the lump sum cash option. In Hawaii, both options face the same 11% 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 Hawaii 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. Hawaii also withholds state tax at or near the 11% 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.
Does Hawaii tax lottery winnings if you bought the ticket on the mainland?
Yes. Hawaii has no lottery, but it taxes its residents on all income, including a lottery prize won on a ticket bought in another state, at a top rate of 11%, the highest of any state. Hawaii allows a credit for income tax paid to the state where the ticket was bought, but if that state does not tax the prize, the full Hawaii rate applies.