Illinois State Tax on Lottery Winnings
Free Illinois lottery tax calculator for Powerball and Mega Millions. Illinois taxes lottery winnings at 4.95% (top marginal rate).
Current Powerball $516M jackpot, single filer
$123.46M
Actual take-home: 23.9% of what they advertise
What You'd Actually Take Home.
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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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What to Know Before Claiming a Jackpot in Illinois
Illinois taxes lottery winnings at a flat 4.95%, a mid range rate. The claim rules carry two firm deadlines. You have one year to claim the prize, but only 60 days from the draw date to choose the cash option instead of the annuity. Miss that window and the annuity becomes the only choice. Privacy has a real limit here too. A winner of $250,000 or more can request that their name and city stay confidential when claiming, but Illinois law does not block a Freedom of Information Act request for that same information, so confidentiality is not absolute. Claiming through a trust is another option some winners use for additional privacy.
- State tax rate (2026)
- 4.95% flat state income tax
- Deadline to claim
- One year from the draw date
- Deadline to choose cash or annuity
- 60 days from the draw date, or the prize defaults to the annuity
- Anonymity
- Winners of $250,000 or more may request that their name and city stay confidential at the time of claim, though this does not block a Freedom of Information Act request for that information
- Where jackpots are claimed
- An Illinois Lottery Claim Center in person, by appointment, for prizes over $10,000
- What proceeds fund
- The Common School Fund for K-12 education, which receives about 99% of Lottery proceeds
Sources: Illinois Dept. of Revenue: Income Tax Rates · Illinois Lottery: When You Win · Illinois Lottery: Claiming Game Prizes FAQ · Illinois Lottery: Where the Money Goes
Illinois Lottery Winnings Tax Overview
The Illinois state tax on lottery winnings is 4.95%, a moderate rate near the middle of the 41 states that tax lottery payouts. Illinois ranks number 23 in that group. If you win a Powerball or Mega Millions prize in Illinois, 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 Illinois lottery tax calculator above runs the full math for the current jackpot.
How the Illinois Lottery Payout Calculator Works
In Illinois, 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, Illinois taxes lottery winnings at 4.95% 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 Illinois lottery tax rate.
How Illinois Compares to Other Lottery Tax States
Illinois's 4.95% lottery tax rate ranks number 23 out of 41 taxed states. States with a higher lottery tax rate than Illinois include Alabama and Georgia. States with a lower rate include Missouri and West Virginia. 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 4.95% of their lump sum compared to a winner in Illinois.
Illinois Lottery Tax FAQs
What is the Illinois state tax on lottery winnings?
Illinois taxes lottery winnings at a top marginal rate of 4.95%. 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 Illinois?
Most Powerball and Mega Millions winners choose the lump sum cash option. In Illinois, both options face the same 4.95% 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 Illinois 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. Illinois also withholds state tax at or near the 4.95% 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 if you win the lottery in Illinois?
Partly. A winner of $250,000 or more can request on the official claim form that their name and city of residence stay confidential. That request is not absolute protection, though. Illinois law does not stop a member of the public from obtaining that same information through a Freedom of Information Act request. Some winners claim through a trust for an additional layer of privacy.