State rankings

Taxes on Lottery Winnings by State

Maryland has the highest Taxes Charged on Lottery Winnings (8.95%), followed by District of Columbia (8.95%) and New York (8.82%). North Dakota has the lowest (2.9%).

EconomicsLaw51 states · 2 metricsUpdated Mar 26, 2025Original page
2 sources
Taxes Charged on Lottery WinningsBetter directionWhether a higher or a lower value is better. A green arrow means higher is better, a red arrow means lower is better, and no arrow means neither.More in the glossary →
37 of 51 states
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Taxes Charged on Lottery Winnings

Green is better, red is worse (lower is better). Click a place to highlight it.

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All 37 ranked

Best first.

Distribution Median and middle halfThe median is the middle value: half of places are above it, half below. The middle half is the range holding the central 50% of places.More in the glossary →

Each dot is one state; the lines mark the median and the middle half.

Median
5%
Middle half 4.95% – 6.93%
Average
5.72%
37 states
Lowest (best)
2.9%
North Dakota
Highest (worst)
8.95%
District of Columbia

Data

Click a column to sort, a row to highlight that place on the charts.

51 states · # = rank by Taxes Charged on Lottery Winnings
#
1North Dakota2.9%—
2Pennsylvania3.07%—
3Indiana3.23%—
4Virginia4%—
4Missouri4%—
4Colorado4%—
7Michigan4.25%—
8Ohio4.8%—
8Arizona4.8%—
10Illinois4.95%—
11Massachusetts5%—
11Kentucky5%—
11Louisiana5%—
11Oklahoma5%—
11Iowa5%—
11Kansas5%—
11Mississippi5%—
11Nebraska5%—
11Maine5%—
20North Carolina5.25%—
21Georgia5.75%—
22Arkansas5.9%—
22New Mexico5.9%—
24Rhode Island5.99%—
25Vermont6%—
26West Virginia6.5%—
27Montana6.9%—
28Idaho6.93%—
29Connecticut6.99%—
30South Carolina7%—
31Minnesota7.25%—
32Wisconsin7.65%—
33New Jersey8%—
33Oregon8%—
35New York8.82%—
36Maryland8.95%—
36District of Columbia8.95%—
—California—No state tax on lottery winnings
—Texas—State does not charge individual income tax
—Florida—State does not charge individual income tax
—Washington—State does not charge individual income tax
—Tennessee—State does not charge individual income tax
—Alabama—State has no lottery
—Utah—No state tax on lottery winnings
—Nevada—State has no lottery
—Hawaii—State has no lottery
—New Hampshire—State does not charge individual income tax
—Delaware—No state tax on lottery winnings
—South Dakota—State does not charge individual income tax
—Alaska—State has no lottery
—Wyoming—State does not charge individual income tax

What correlates with Taxes Charged on Lottery Winnings?

Pearson r against 2,100 other state metrics sharing at least 23 states. Ranks are read by standing: a better rank counts as higher, whether rank 1 is the best place on a list or the worst. Correlation is not causation.

Higher together

Places that have a higher Taxes Charged on Lottery Winnings tend to score higher on these (or rank better)

  1. State Tax RateMega Millions States
    r = +0.84 · very strong · n = 36
    Plot
  2. Income Tax Maximum RateTaxes by State
    r = +0.78 · very strong · n = 37
    Plot
  3. Max RateTax Rates by State
    r = +0.77 · very strong · n = 37
    Plot
  4. Capital Gains RateCapital Gains Tax by State
    r = +0.77 · very strong · n = 37
    Plot
  5. Highest Income Tax BracketNo Income Tax States
    r = +0.76 · very strong · n = 37
    Plot
  6. Highest BracketIncome Tax by State
    r = +0.74 · very strong · n = 37
    Plot

Opposite directions

Places that have a higher Taxes Charged on Lottery Winnings tend to score lower on these (or rank worse)

  1. Individual Income Tax RankBest State To Incorporate InA rank: rank 1 is the best
    r = −0.69 · strong · n = 37
    Plot
  2. State Freedom ScoreState Powers
    r = −0.66 · strong · n = 36
    Plot
  3. Overall Freedom ScoreMost Libertarian States
    r = −0.66 · strong · n = 36
    Plot
  4. % of Students at Basic Reading LevelU.S. Literacy Rates by State
    r = −0.60 · strong · n = 37
    Plot
  5. Overall Freedom RankMost Libertarian StatesA rank: rank 1 is the best
    r = −0.58 · strong · n = 36
    Plot
  6. Freedom RankMost Free StatesA rank: rank 1 is the best
    r = −0.56 · strong · n = 36
    Plot

Quick answers

Which state has the highest Taxes Charged on Lottery Winnings?
Maryland has the highest Taxes Charged on Lottery Winnings, at 8.95%, followed by District of Columbia (8.95%) and New York (8.82%).
Which state has the lowest Taxes Charged on Lottery Winnings?
North Dakota has the lowest Taxes Charged on Lottery Winnings, at 2.9%.
What is the median Taxes Charged on Lottery Winnings across US states?
The median is 5% across the 37 US states with data.
Where does this taxes on lottery winnings by state data come from?
Rankodex compiles it from World Population Review and the primary sources it cites: What Are the Chances Your State Withholds Much of Your Lottery Winnings? - Tax Foundation; What Percentage of Lottery Winnings Would be Withheld in Your State? - Tax Foundation.

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