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What tax rates actually apply to US lottery winnings?

ChamTax is an online calculator that shows the after-tax take-home amount for US Powerball and Mega Millions lottery winnings. This page breaks down federal tax, state tax, and nonresident alien withholding - the actual rates that apply to a US lottery (Powerball, Mega Millions) prize.

Last updated: 2026-08-03

1. Federal Tax

Status	Rate
US citizen / resident	24% withheld → settled up to as much as 37% when filing
Nonresident alien (e.g. Korean residents)	30% withheld (usually the final rate)

Nonresident aliens can't claim loss deductions against gambling/lottery income, and the US-Korea tax treaty doesn't reduce tax on this income either (confirmed by the case Park v. Commissioner).

2. State Tax

State	Rate
Texas, Florida, Washington, Nevada	0% (no state income tax)
California	0% (lottery winnings are exempt outright)
New York	10.9%
New Jersey	10.75%
Oregon	9.9%
Minnesota	9.85%
Maryland	about 8.75-9.5% (official sources vary)

State tax applies based on the state where you claimed the prize (where you bought the ticket). If you win in a no-tax state, you owe no state tax at all. Maryland is a rare exception: it withholds nonresidents at a separate rate (8.75%) that's higher than its own top state income tax rate (6.5%), so the figure above may look different from this site's calculator (which uses the top state income tax rate).

3. Korean Tax

Even after paying US tax, Korean residents still have a reporting obligation in Korea. Whether it's taxed like a domestic lottery win with a flat 22-33% other-income tax, or whether it has to be added to comprehensive income tax (up to 45%), is still a gray area with no clear official ruling. The tax you paid in the US can partly offset this through the Foreign Tax Credit (FTC).

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Frequently asked questions

Which state's tax applies?

The state where you bought the ticket and claimed the prize - not where you live. What matters is "where you bought it," not your residence.

Does filing status (single/married) change the rate?

For an amount as large as a lottery jackpot, it barely matters. As of 2026, the top tax bracket (37%) starts around $640,000 for singles and around $770,000 for married filing jointly - which is a rounding error next to a prize worth millions or hundreds of millions of dollars.

How do I actually file the tax return?

After US withholding, you settle up using the nonresident tax return (Form 1040-NR). In Korea, you file alongside your comprehensive income tax return the following May, after receiving the prize. If the amount is large, you'll definitely want to consult a tax professional who handles both US and Korean tax.

This page is for informational purposes only and does not sell, resell, or broker lottery tickets. Consult a tax professional for your actual tax filing.