LotteryLab

Nebraska Lottery Tax Calculator

See what you'd actually keep from a Nebraska lottery prize after federal and state taxes — Nebraska withholds up to 5.84%, plus federal tax.

Nebraska lottery take-home by jackpot size

Estimated net take-home after federal + 5.84% Nebraska state tax.

Advertised jackpot Lump-sum take-home Annuity total (30 yrs) Effective tax
$1,000,000 $613,412 $828,560 39%
$10,000,000 $5,757,812 $6,804,758 42%
$100,000,000 $57,201,812 $58,414,368 43%
$500,000,000 $285,841,812 $287,054,368 43%

Estimates use single-filer federal brackets and Nebraska's top lottery-withholding rate. Actual tax depends on your total income, filing status, deductions and residency. Not tax advice.

How Nebraska 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. On top of that, Nebraska taxes lottery winnings at up to 5.84%. 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.

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Nebraska lottery tax FAQ

Does Nebraska tax lottery winnings?

Yes. Nebraska taxes lottery winnings at up to 5.84%, on top of federal tax (progressive, up to 37%).

How much tax do you pay on a $1 million Nebraska lottery prize?

On a $1,000,000 Nebraska prize taken as a lump sum, you'd owe roughly $386,588 in combined federal and state tax (about 39%), leaving about $613,412 take-home.

Is it better to take a lump sum or annuity in Nebraska?

A lump sum gives you the discounted cash value now; a 30-year annuity pays the full advertised jackpot in equal yearly installments. Either way Nebraska's 5.84% state rate and federal tax apply; the annuity can keep more of each year's payment in lower brackets. Use the calculator above to compare.