Pennsylvania Lottery Tax Calculator
See what you'd actually keep from a Pennsylvania lottery prize after federal and state taxes — Pennsylvania withholds up to 3.07%, plus federal tax.
Pennsylvania lottery take-home by jackpot size
Estimated net take-home after federal + 3.07% Pennsylvania state tax.
| Advertised jackpot | Lump-sum take-home | Annuity total (30 yrs) | Effective tax |
|---|---|---|---|
| $1,000,000 | $641,112 | $856,260 | 36% |
| $10,000,000 | $6,034,812 | $7,081,757 | 40% |
| $100,000,000 | $59,971,812 | $61,184,368 | 40% |
| $500,000,000 | $299,691,812 | $300,904,368 | 40% |
Estimates use single-filer federal brackets and Pennsylvania's top lottery-withholding rate. Actual tax depends on your total income, filing status, deductions and residency. Not tax advice.
How Pennsylvania 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, Pennsylvania taxes lottery winnings at up to 3.07%. 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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Pennsylvania lottery tax FAQ
Does Pennsylvania tax lottery winnings?
Yes. Pennsylvania taxes lottery winnings at up to 3.07%, on top of federal tax (progressive, up to 37%).
How much tax do you pay on a $1 million Pennsylvania lottery prize?
On a $1,000,000 Pennsylvania prize taken as a lump sum, you'd owe roughly $358,888 in combined federal and state tax (about 36%), leaving about $641,112 take-home.
Is it better to take a lump sum or annuity in Pennsylvania?
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 Pennsylvania's 3.07% 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.