Mississippi State Tax on Lottery Winnings
Free Mississippi lottery tax calculator for Powerball and Mega Millions. Mississippi taxes lottery winnings at 4.00% (top marginal rate).
Current Powerball $516M jackpot, single filer
$125.48M
Actual take-home: 24.3% of what they advertise
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What to Know Before Claiming a Jackpot in Mississippi
Mississippi taxes lottery winnings at a flat 4% in 2026, and that rate is scheduled to keep falling toward zero over the next decade. On privacy, Mississippi is one of the best states in the country: the Alyce G. Clarke Mississippi Lottery Law bars the Lottery from disclosing a winning ticket holder's identity without that person's written permission. You have 180 days to claim, and prizes of $100,000 or more are paid at Lottery headquarters in Flowood. The money split is unusual. The first $80 million a year goes to roads and bridges, and everything above that goes to the Education Enhancement Fund.
- State tax rate (2026)
- 4% flat, on income over $10,000, scheduled to phase down toward zero
- Deadline to claim
- 180 days after the drawing
- Anonymity
- Allowed. Under the Alyce G. Clarke Mississippi Lottery Law the Lottery will not disclose a winning ticket holder's identity without that person's written permission
- Where jackpots are claimed
- In person at Mississippi Lottery headquarters, 1080 River Oaks Drive, Flowood, for prizes of $100,000 or more
- What proceeds fund
- The first $80 million each year goes to state infrastructure, roads and bridges; net proceeds above $80 million go to the Education Enhancement Fund
Sources: Mississippi Dept. of Revenue: Individual Income Tax FAQ · Mississippi Lottery: How to Claim Your Prize · Mississippi Lottery: FAQs
Mississippi Lottery Winnings Tax Overview
The Mississippi state tax on lottery winnings is 4%, a moderate rate near the middle of the 41 states that tax lottery payouts. Mississippi ranks number 31 in that group. If you win a Powerball or Mega Millions prize in Mississippi, 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 Mississippi lottery tax calculator above runs the full math for the current jackpot.
How the Mississippi Lottery Payout Calculator Works
In Mississippi, 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, Mississippi taxes lottery winnings at 4% 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 Mississippi lottery tax rate.
How Mississippi Compares to Other Lottery Tax States
Mississippi's 4% lottery tax rate ranks number 31 out of 41 taxed states. States with a higher lottery tax rate than Mississippi include Colorado and Michigan. States with a lower rate include North Carolina and Arkansas. 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% of their lump sum compared to a winner in Mississippi.
Mississippi Lottery Tax FAQs
What is the Mississippi state tax on lottery winnings?
Mississippi taxes lottery winnings at a top marginal rate of 4%. 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 Mississippi?
Most Powerball and Mega Millions winners choose the lump sum cash option. In Mississippi, both options face the same 4% 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 Mississippi 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. Mississippi also withholds state tax at or near the 4% 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 Mississippi?
Yes. The Alyce G. Clarke Mississippi Lottery Law states that the Mississippi Lottery Corporation will not release the identity of a person holding a winning lottery ticket without that person's written permission. A Powerball or Mega Millions jackpot winner in Mississippi can claim the prize and keep their name out of the public record.