Tennessee State Tax on Lottery Winnings
Free Tennessee lottery tax calculator for Powerball and Mega Millions. Tennessee has no state income tax on lottery winnings, but you still owe federal.
Current Powerball $516M jackpot, single filer
$133.98M
Actual take-home: 26.0% 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 Tennessee
Tennessee has no state income tax, and the Hall tax on interest and dividends was fully repealed in 2021, so a jackpot winner here owes only federal tax. Privacy is limited. Under the state lottery law, the Tennessee Education Lottery releases a winner's name, home state, and hometown when it gets a valid public records request. You have 180 days to claim, and prizes of $200,000 or more are paid at Lottery headquarters in Nashville. Tennessee's Lottery is built around education: it funds the HOPE Scholarship and a stack of other college and pre-K programs, more than $8 billion since 2004.
- State tax rate (2026)
- None. Tennessee has no state income tax on lottery winnings
- Deadline to claim
- 180 days after the drawing date
- Anonymity
- Not available. The Tennessee Education Lottery releases a winner's name, home state, and hometown in response to a valid public records request
- Where jackpots are claimed
- In person at Tennessee Lottery headquarters in Nashville for prizes of $200,000 or more
- What proceeds fund
- Education. The HOPE Scholarship and other lottery scholarships, the Wilder-Naifeh Technical Skills Grant, Tennessee Promise, after-school programs, and pre-K, more than $8 billion raised since 2004
Sources: Tennessee Lottery: I Won! Now What? · Tennessee Lottery: How to Claim · Tennessee Lottery: Education Wins · Tennessee Lottery: Nearly $8 Billion Raised for Education
Tennessee Lottery Winnings Tax Overview
The Tennessee state tax on lottery winnings is 0%. Winning a Powerball or Mega Millions jackpot in Tennessee is one of the most tax friendly outcomes any lottery winner can hope for. Tennessee does not collect state income tax on lottery winnings, joining 9 other no tax states such as Alaska, California, and Florida. The federal lottery tax still applies, but no additional Tennessee state tax comes out of your lump sum cash option. The Tennessee lottery tax calculator above shows your real take home for the current jackpot.
How the Tennessee Lottery Payout Calculator Works
For a Tennessee resident who wins Powerball or Mega Millions, the lottery payout calculation starts with the lump sum cash option, which equals roughly 45% of the advertised jackpot. The IRS withholds 24% federal lottery tax at the source on the day of payout. At tax filing, the rest of the federal tax kicks in because lottery winnings push the winner into the top 37% bracket. Since Tennessee does not collect state income tax on lottery winnings, the final take home equals the lump sum minus the full federal lottery tax, with no additional state withholding line.
How Tennessee Compares to Other Lottery Tax States
Tennessee sits alongside 9 other no tax states for lottery winners: Alaska, California, Florida, Nevada, New Hampshire, South Dakota, Texas, Washington, and Wyoming. Compared to high tax states like New York or New Jersey, where lottery winners can lose more than 10% of their lump sum to the state tax line alone, Tennessee leaves the entire lump sum, after the federal lottery tax, in the winner's hands. This makes Tennessee one of the most favorable jurisdictions in the country to claim a Powerball or Mega Millions prize.
Tennessee Lottery Tax FAQs
Does Tennessee tax lottery winnings?
No. Tennessee does not collect state income tax on lottery winnings. Powerball and Mega Millions winners in Tennessee only owe the federal lottery tax, which can reach 37% at the top bracket. The lump sum cash option arrives without any Tennessee withholding line on top of the federal portion.
Should I take the lump sum or annuity in Tennessee?
Most Powerball and Mega Millions winners choose the lump sum cash option. In Tennessee, neither choice changes the state tax bill because Tennessee does not tax lottery winnings. 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 Tennessee 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. Tennessee adds no state withholding line because Tennessee does not tax lottery winnings, so the only further federal balance comes due in April when the winner files a federal return.
Can you stay anonymous if you win the lottery in Tennessee?
Generally no. The Tennessee Education Lottery Implementation Law requires the lottery to release a winner's name, home state, and hometown when it receives an eligible public records request, so a Powerball or Mega Millions jackpot winner should expect that information to become public. Some winners claim through a trust or other entity to keep an individual name off the initial announcement.