New Jersey State Tax on Lottery Winnings
Free New Jersey lottery tax calculator for Powerball and Mega Millions. New Jersey taxes lottery winnings at 10.75% (top marginal rate).
Current Powerball $516M jackpot, single filer
$111.13M
Actual take-home: 21.5% of what they advertise
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.
Know What a Big Lottery Jackpot Is Really Worth.
The jackpot is $516M right now. Get occasional jackpot updates showing the advertised prize, estimated lump-sum cash value, and estimated take-home after federal and state taxes.
Free to join. No spam. Unsubscribe anytime. We never sell your email.
From Advertised to Deposit, Line by Line.
Every row updates as you change the controls above. Sources cited inline.
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 New Jersey
New Jersey has one of the highest top rates in the country, 10.75% on income above $1 million, and a jackpot lump sum clears that line immediately. What New Jersey gives back is privacy. Since a 2019 law took effect in January 2020, a New Jersey Lottery winner can choose to remain anonymous for good, and the winner's identity is kept out of records released under the state's Open Public Records Act. You have one year to claim, and a jackpot is handled by appointment at the Lottery's claim center near Trenton. Since 2017 the Lottery's profit has been dedicated to the state's public worker pension funds rather than to education.
- State tax rate (2026)
- 10.75% top rate, on taxable income over $1 million
- Deadline to claim
- One year from the drawing date
- Anonymity
- Allowed. A 2019 law lets a New Jersey Lottery winner choose to remain anonymous indefinitely, and the identity is withheld from Open Public Records Act disclosure
- Where jackpots are claimed
- By appointment at the New Jersey Lottery claim center in Lawrence Township, near Trenton, for prizes of roughly $25,000 or more
- What proceeds fund
- Public employee pensions. The Lottery Enterprise Contribution Act dedicates Lottery net proceeds to the teachers', public employees', and police and firefighters' retirement systems for 30 years
Sources: New Jersey Division of Taxation: NJ Income Tax Rates · New Jersey Lottery: Claim a Prize · New Jersey Lottery Enterprise Transparency · New Jersey Treasury: The Lottery Enterprise Contribution Act
New Jersey Lottery Winnings Tax Overview
The New Jersey state tax on lottery winnings is 10.75%, one of the heaviest lottery tax rates in the country. This top marginal rate ranks number 3 out of 41 states that levy a lottery tax. A Powerball or Mega Millions winner in New Jersey 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 New Jersey lottery tax calculator above shows the exact take home for any current jackpot.
How the New Jersey Lottery Payout Calculator Works
In New Jersey, 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, New Jersey taxes lottery winnings at 10.75% 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 New Jersey lottery tax rate.
How New Jersey Compares to Other Lottery Tax States
New Jersey's 10.75% lottery tax rate ranks number 3 out of 41 taxed states. States with a higher lottery tax rate than New Jersey include Hawaii and New York. States with a lower rate include Washington DC and Oregon. 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 10.75% of their lump sum compared to a winner in New Jersey.
New Jersey Lottery Tax FAQs
What is the New Jersey state tax on lottery winnings?
New Jersey taxes lottery winnings at a top marginal rate of 10.75%. 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 New Jersey?
Most Powerball and Mega Millions winners choose the lump sum cash option. In New Jersey, both options face the same 10.75% 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 New Jersey 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. New Jersey also withholds state tax at or near the 10.75% 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 New Jersey?
Yes. Legislation signed in January 2020 amended the New Jersey Lottery Law so that a winner may elect to remain anonymous, with no time limit, and the winner's identity is not included in material available for public inspection under the Open Public Records Act. A Powerball or Mega Millions jackpot winner in New Jersey can make that election when filing the claim.