Withholding is exact
A calculator gives you the withholding accurately, because those rates are fixed by statute.
The short answer
Final tax is not
It cannot give you your final tax, which depends on your other income, filing status and deductions. The larger the prize, the wider the gap.
Use it before you claim
Use it to set expectations before you claim, not to decide what you can spend.
Interactive calculator
New York lottery withholding calculator
Enter your prize to see what comes out at the claim center. This shows withholding, not your final tax.
New York lottery withholding calculator
Enter your prize to see what comes out at the claim center. This shows withholding, not your final tax.
Enter the amount payable to you. For Powerball and Mega Millions the advertised jackpot is the annuity total, and the cash option is lower. The official cash value is published with each draw.
Proceeds is the prize less this amount. The thresholds are measured on proceeds.
Proceeds
Prize less the $2 ticket, $999,998
$5,000 threshold
Passed, so withholding applies
Prize$1,000,000
Less: federal withholding at 24 percent($240,000)
Less: New York State at 10.9 percent($109,000)
Less: New York City at 3.876 percent($38,760)
Total withheld$387,760
Received at the claim center$612,240
New York City tax applies to city residents only.
This is withholding, not your final tax. The rates here are fixed by statute. Your final tax depends on your other income, filing status and deductions, and on a large prize it is usually higher.
Withholding vs final tax
Withholding is arithmetic. Final liability is not.
A lottery tax calculator is accurate on withholding and cannot tell you your final tax. The wider picture, why the gap exists and how large it gets, is on our page on New York lottery tax.
01Three rates
The three rates a calculator applies
All three are fixed by statute, which is why this part can be calculated exactly.
| Layer | Rate | Applies to |
|---|---|---|
| Federal | 24 percent | Everyone, on proceeds over $5,000 |
| New York State | 10.9 percent | Any New York Lottery prize over the threshold, residents and non-residents |
| New York City | 3.876 percent | City residents only |
| Yonkers | 16.75 percent of the state figure | Yonkers residents, about 1.83 percent of the prize |
What the NY Lotto payout calculator shows
The same three rates apply whether you played Lotto, Powerball, Mega Millions, or a scratch-off. New York withholds identically across all of them.
02Withholding vs tax owed
Why your final tax is higher than the calculator shows
The calculator shows withholding. Your final tax is higher, because withholding is a flat 24 percent federal rate and a large prize is taxed at up to 37 percent.
Our page on New York lottery tax works through why the gap exists and how large it gets.
03Calculator limits
What a calculator cannot include
A withholding figure is arithmetic. Your tax bill is not, and these are the inputs no calculator has.
Fixed by statute
- • Federal withholding at 24 percent
- • New York State at 10.9 percent
- • New York City at 3.876 percent, or the Yonkers surcharge
- • What reaches you at the claim center
Set by your tax return
- • Your other income for the year
- • Your filing status, deductions and credits
- • Whether you have paid estimated tax
- • Which years a lump sum or annuity puts the income in
04How to use it
How to use a withholding estimate
Treat the figure as a starting point, not a budget.
- Treat it as a floor. What you will owe is at least this, and on a large prize probably more.
- Check the estimated payment question. Withholding alone may not be enough to avoid an underpayment penalty.
- Do not use it to decide the lump sum question. That choice changes which years the income falls in, and a single year calculator cannot model it.
05FAQ
Frequently asked questions
Is a lottery tax calculator accurate?
For withholding, yes, because those rates are fixed. For your final tax, no, because it does not have the rest of your year.
How much does New York withhold from lottery winnings?
10.9 percent state, plus 3.876 percent for New York City residents, plus 24 percent federal, on proceeds over $5,000.
What is the Yonkers lottery tax rate?
Yonkers has no rate of its own. It charges a surcharge of 16.75 percent of your New York State tax, which on a prize withheld at 10.9 percent works out to about 1.83 percent of the prize.
Is the NYS lottery tax calculator the same for Lotto and Powerball?
Yes. New York State withholds 10.9 percent on any lottery prize over $5,000 of proceeds, whichever game it came from. Federal withholding of 24 percent is the same across all of them. The only variable is where you live.
What is my take home on a New York lottery win?
At the counter, the prize less 38.776 percent if you live in New York City. Your final take home is lower, because withholding is a flat rate and a large prize is taxed at up to 37 percent federally.
Does the calculator work for a non-resident?
Only partly. New York withholds on a Lottery prize with proceeds over $5,000 for non-residents too, reported on Form IT-203, but no city tax, and your own state will tax it as well.
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Reviewed by George Dimov, CPA, New York, NY. Serving clients in all 50 states, 15+ years advising New York taxpayers. President of George Dimov, CPA, a New York City firm serving clients across the five boroughs and nationwide.