Indiana State Tax on Lottery Winnings
Free Indiana lottery tax calculator for Powerball and Mega Millions. Indiana taxes lottery winnings at 2.95% (top marginal rate).
Current Powerball $786M jackpot, single filer
$205.17M
Actual take-home: 26.1% of what they advertise
What you'd actually take home.
Lottery tax calculator for Powerball, Mega Millions, and every state.
Lotteries advertise the jackpot, never the after-tax cash, so pick your game, state, and filing status to see what you'd really keep after federal and state 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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The jackpot is $786M right now. Get occasional jackpot updates showing the advertised prize, estimated lump-sum cash value, and estimated take-home after federal and state taxes.
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From advertised to deposit, line by line.
Federal withholding hits first, then your full bracket math, then the state. Every row updates when you change the controls above. Sources are cited on each row.
Even winning is statistically a stretch.
How unlikely is "unlikely"?
The math most ticket buyers never see.
Eleven pages, three facts each. Every number comes from official odds, IRS 2026 brackets, FY2024 federal spending, and lottery cash-option ratios.
The wait
Step 04 · Browse by stateAll 50 states + DC, ranked by lottery tax bite.
10 states · no lottery taxHighest: Hawaii, 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 Indiana
Indiana's 2026 flat state income tax rate is 2.95%, but county income tax may also apply based on residency. This calculator does not include county tax, so an Indiana resident's final liability may be higher. Privacy is also limited. The official Hoosier Lottery winner guide says a winner's name, address, and city are public records. The Lottery has published an example of a $42.5 million prize claimed as Free Ticket, LLC, but it does not state that using a trust or LLC guarantees personal anonymity. Consult an Indiana attorney before claiming if privacy matters.
- State tax rate (2026)
- 2.95% flat state income tax. County income tax may also apply and is not included in this calculator
- Deadline to claim
- 180 days from the draw date
- Public records
- The official winner guide says a winner's name, address, and city are public records
- Where jackpots are claimed
- For prizes of $50,000 or more, call 1-800-955-6886 to schedule a claim appointment
- What proceeds fund
- $30 million each year for the Teachers' Retirement Fund, $30 million for local police and firefighters' pensions, and the remaining surplus for the Lottery Surplus Fund
Sources: Indiana Dept. of Revenue: State and County Tax Rates · Hoosier Lottery: Claiming Your Prize · Hoosier Lottery: Winner Guide · Hoosier Lottery: Free Ticket, LLC Winner · Hoosier Lottery: Giving Back
Indiana lottery winnings tax overview
The Indiana state tax on lottery winnings is 2.95%, well below the national median for states that collect a lottery tax. This puts Indiana at number 38 out of 41 taxed states, which means a larger share of your Powerball or Mega Millions prize stays in your pocket once the federal lottery tax of up to 37% is settled. The Indiana lottery tax calculator above shows the exact lump sum take home for any current jackpot.
How the Indiana lottery payout calculator works
In Indiana, 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, Indiana taxes lottery winnings at 2.95% 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 Indiana lottery tax rate.
How Indiana compares to other lottery tax states
Indiana's 2.95% lottery tax rate ranks number 38 out of 41 taxed states. States with a higher lottery tax rate than Indiana include Pennsylvania and Louisiana. States with a lower rate include Ohio and Arizona. 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 2.95% of their lump sum compared to a winner in Indiana.
Indiana lottery tax FAQs
What is the Indiana state tax on lottery winnings?
Indiana taxes lottery winnings at a top marginal rate of 2.95%. 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 Indiana?
Most Powerball and Mega Millions winners choose the lump sum cash option. In Indiana, both options face the same 2.95% 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 Indiana 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. Indiana also withholds state tax at or near the 2.95% 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 Indiana?
Indiana does not provide direct winner anonymity. The official Hoosier Lottery winner guide says the winner's name, address, and city are public records. The Lottery has documented a $42.5 million prize claimed as Free Ticket, LLC, but it does not state that an LLC or trust guarantees personal anonymity. Consult an Indiana attorney before claiming if privacy matters.