Nebraska (NE) Lottery
    Tax & Payout Calculator

    Nebraska taxes lottery winnings at up to 4.55%, and federal income tax applies too. 24% federal and 3.5% state tax are withheld from prizes over $5,000. Taken as cash, the next $538 million Powerball jackpot leaves a Nebraska winner about $129 million.

    Nebraska Powerball & Mega Millions Jackpots After Taxes

    What each jackpot leaves after federal and Nebraska tax, as one cash payment or paid yearly.

    Powerball

    Jackpot
    $538M
    Cash value
    $220.6M
    Federal + state tax
    $91.6M
    You keep
    About $129M

    Mega Millions

    Jackpot
    $385M
    Cash value
    $154.8M
    Federal + state tax
    $64.3M
    You keep
    About $90.5M

    Lotto America

    Jackpot
    $2.2M
    Cash value
    $880K
    Federal + state tax
    $315.6K
    You keep
    About $564.4K

    Powerball Xs & Os

    Jackpot
    $1.5M
    Cash value
    $1.5M
    Federal + state tax
    $573.3K
    You keep
    About $926.7K

    Pick 5

    Jackpot
    $50K
    Cash value
    $50K
    Federal + state tax
    $13.8KWithheld
    You keep
    $36.3KAfter withholding

    Federal tax at the 2026 rates for a single filer with no other income and Nebraska's 4.55% tax.

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    Nebraska Lottery Tax Calculator

    Type your prize to see what's withheld when it's paid and what you're handed.

    $
    PrizeWithheld at claimPaid to you
    $1,000Nothing$1,000
    $5,000Nothing$5,000
    $10,000$2,750$7,250
    $50,000$13,750$36,250
    $100,000$27,500$72,500
    $1,000,000$275,000$725,000

    Every prize is taxable income. From $2,000 the lottery reports it to the IRS, and your final federal tax depends on your income, from 10% to 37%.

    Good to Know

    Nebraska tax on winnings 

    Up to 4.55%

    Graduated: what you owe depends on your income, on top of federal tax.

    Withheld when you're paid 

    24% federal + 3.5% state over $5,000

    Smaller prizes are paid in full.

    Top federal rate 

    37% over $640,600

    $768,700 for married filing jointly. A jackpot owes most of its tax at this rate, more than the 24% withheld.

    Reported to the IRS 

    Prizes of $2,000 or more

    On Form W-2G, from 2026; it was $600 before.

    Cash or annuity 

    Choose within 60 days of claiming the prize

    Cash is one smaller payment. The annuity pays the full jackpot yearly: 30 years for Powerball, Mega Millions and Lotto America.

    Graduated state tax 

    Nebraska taxes income at graduated rates, and winnings are added to the rest of your income. For 2026 the rates are 2.46%, 3.51% and 4.55%, the top rate down from 5.20% in 2025, and the top rate falls to 3.99% from 2027.

    Nonresidents 

    Nebraska Lottery prizes are Nebraska income, so winners who live in another state report them on a Nebraska nonresident return too.

    Reviewed by Bishop Woosley, former Director of the Arkansas Scholarship Lottery and NASPL President.

    You can't change the lottery's odds.
    You can pick better scratch-offs.

    The best Nebraska scratch-offs right now have up to x10.6 better jackpot odds for $50K to $100K+ jackpots.

    • Every Nebraska scratch-off ranked by today's odds
    • The best tickets for your budget and the prize you want
    • A free app, built on official Nebraska Lottery data
    The ScratchOdds app: today's best scratch-offs and the goal picker

    More Nebraska Lottery Help

    What each game pays, the best scratch-offs, and taxes in other states.

    Frequently Asked Questions

    Answers about the Nebraska Lottery

    Does Nebraska tax lottery winnings?
    Yes. Nebraska taxes lottery winnings at up to 4.55%, and federal income tax applies too.
    What is the Nebraska lottery tax rate?
    Nebraska taxes lottery winnings at up to 4.55%, on top of federal income tax. 24% federal and 3.5% state tax are withheld from prizes over $5,000; smaller prizes are paid in full.
    How much tax do you pay on a $1,000 lottery ticket in Nebraska?
    Nothing is withheld: the Nebraska Lottery pays the full $1,000. The prize is still taxable income, taxed at your federal rate when you file: from 10% to 37%, depending on your income. Nebraska taxes it too, at up to 4.55%.
    How much tax do you pay on a $10,000 lottery ticket in Nebraska?
    The Nebraska Lottery withholds $2,750 and pays you $7,250. The prize is still taxable income, taxed at your federal rate when you file: from 10% to 37%, depending on your income. Nebraska taxes it too, at up to 4.55%.
    How much tax do you pay on $1 million in lottery winnings in Nebraska?
    The Nebraska Lottery withholds $275,000 and pays you $725,000. The prize is still taxable income, taxed at your federal rate when you file: from 10% to 37%, depending on your income. Nebraska taxes it too, at up to 4.55%.
    How much are lottery winnings taxed?
    Lottery winnings are taxed as income. Federal rates run from 10% to 37%, and in 2026 the top rate starts at $640,600 for a single filer and $768,700 for a married couple filing jointly. What's withheld when you're paid is a down payment: on a large prize, you'll likely owe more when you file.
    Do you get a W-2G for lottery winnings?
    Yes, for prizes of $2,000 or more: the lottery reports them to the IRS on Form W-2G. The threshold was $600 before 2026. Smaller prizes are still taxable income you report.
    How much is the Powerball jackpot after taxes in Nebraska?
    The next Powerball jackpot is an estimated $538 million, or $220.6 million as one cash payment. After federal tax and Nebraska's 4.55%, the cash leaves a single winner about $129 million. Taken as 30 yearly payments, it pays about $316 million after taxes in all.
    How much is the Mega Millions jackpot after taxes in Nebraska?
    The next Mega Millions jackpot is an estimated $385 million, or $154.8 million as one cash payment. After federal tax and Nebraska's 4.55%, the cash leaves a single winner about $90.5 million. Taken as 30 yearly payments, it pays about $226.5 million after taxes in all.
    How much is the Lotto America jackpot after taxes in Nebraska?
    The next Lotto America jackpot is an estimated $2.2 million, or $880,000 as one cash payment. After federal tax and Nebraska's 4.55%, the cash leaves a single winner about $564,000.
    How much is the Powerball Xs & Os jackpot after taxes in Nebraska?
    The next Powerball Xs & Os jackpot is an estimated $1.5 million, paid as one cash payment. After federal tax and Nebraska's 4.55%, the cash leaves a single winner about $927,000.
    What is the difference between the cash option and the annuity?
    The cash option is one payment, smaller than the advertised jackpot: the next Powerball jackpot's is 41% of it, all taxed in one year. The annuity pays the full jackpot in 30 yearly payments, each 5% larger than the last, each taxed in the year it's paid. In Nebraska, you choose within 60 days of claiming the prize.
    Are scratch-off winnings taxed in Nebraska?
    Yes, the same as draw game prizes: scratch-off winnings are taxable income, and 24% federal and 3.5% state tax are withheld from prizes over $5,000. Nebraska taxes them at up to 4.55%.

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