Alaska Lottery Tax Calculator
See what you'd actually keep from a Alaska lottery prize after federal and state taxes — Alaska charges no state tax on winnings.
Alaska lottery take-home by jackpot size
Estimated net take-home after federal tax.
| Advertised jackpot | Lump-sum take-home | Annuity total (30 yrs) | Effective tax |
|---|---|---|---|
| $1,000,000 | $671,812 | $886,960 | 33% |
| $10,000,000 | $6,341,812 | $7,388,758 | 37% |
| $100,000,000 | $63,041,812 | $64,254,368 | 37% |
| $500,000,000 | $315,041,812 | $316,254,368 | 37% |
Estimates use single-filer federal brackets and Alaska's top lottery-withholding rate. Actual tax depends on your total income, filing status, deductions and residency. Not tax advice.
How Alaska lottery winnings are taxed
Lottery prizes are taxable income. Every winner pays federal tax — the IRS withholds 24% up front, and the true rate climbs to 37% on large prizes. Alaska does not add a state tax on lottery winnings, so your only lottery tax is federal — one of the better states to win in. Taking the prize as a lump sum is taxed all in one year (pushing more into the top bracket); a 30-year annuity spreads the income out.
Alaska lottery tax FAQ
Does Alaska tax lottery winnings?
No — Alaska does not levy a state tax on lottery winnings. You only pay federal tax (progressive, up to 37%).
How much tax do you pay on a $1 million Alaska lottery prize?
On a $1,000,000 Alaska prize taken as a lump sum, you'd owe roughly $328,188 in combined federal and state tax (about 33%), leaving about $671,812 take-home.
Is it better to take a lump sum or annuity in Alaska?
A lump sum gives you the discounted cash value now; a 30-year annuity pays the full advertised jackpot in equal yearly installments. Since Alaska has no state lottery tax, the choice is mostly about federal brackets and investing the money yourself. Use the calculator above to compare.