Tennessee (TN) Lottery
Tax & Payout Calculator
Tennessee doesn't tax lottery winnings, but federal income tax applies. 24% federal tax is withheld from prizes over $5,000. Taken as cash, the next $538 million Powerball jackpot leaves a Tennessee winner about $139 million.
Does Tennessee Tax Lottery Winnings?
No. Federal tax applies: 24% federal tax is withheld from prizes over $5,000.
Tennessee Powerball & Mega Millions Jackpots After Taxes
What each jackpot leaves after federal tax, as one cash payment or paid yearly.
- Jackpot
- $538M
- Cash value
- $220.6M
- Federal tax
- $81.6M
- You keep
- About $139M
Powerball
- Jackpot
- $385M
- Cash value
- $154.8M
- Federal tax
- $57.2M
- You keep
- About $97.6M
Mega Millions
- Jackpot
- $2.2M
- Cash value
- $880K
- Federal tax
- $275.6K
- You keep
- About $604.4K
Lotto America
- Jackpot
- $1.5M
- Cash value
- $1.5M
- Federal tax
- $505K
- You keep
- About $995K
Powerball Xs & Os
- Jackpot
- $900K
- Cash value
- $900K
- Federal tax
- $283K
- You keep
- About $617K
Tennessee Cash
- Jackpot
- $480K
- Cash value
- $480K
- Federal tax
- $115.2KWithheld
- You keep
- $364.8KAfter withholding
Daily Tennessee Jackpot
- Jackpot
- $538M
- Paid yearly
- $8.1M to $33.3M a year30 payments, each 5% larger
- Federal tax
- $197.6MOver 30 years
- You keep
- About $340.4MOver 30 years
Powerball
- Jackpot
- $385M
- Paid yearly
- $5.8M to $23.9M a year30 payments, each 5% larger
- Federal tax
- $141MOver 30 years
- You keep
- About $244MOver 30 years
Mega Millions
- Jackpot
- $2.2M
- Paid yearly
- $32.4K to $133.2K a year30 payments, each 5% larger
- Federal tax
- $516KWithheld
- You keep
- $1.6MAfter withholding
Lotto America
Federal tax at the 2026 rates for a single filer with no other income; Tennessee has no tax on lottery winnings.
Each payment is taxed in the year it's paid, at the 2026 rates; Tennessee has no tax on lottery winnings. Payments under $640,600 a year show what's withheld; the rest of their tax depends on the winner's other income.
Tennessee Lottery Tax Calculator
Type your prize to see what's withheld when it's paid and what you're handed.
$
| Prize | Withheld at claim | Paid to you |
|---|---|---|
| $1,000 | Nothing | $1,000 |
| $5,000 | Nothing | $5,000 |
| $10,000 | $2,400 | $7,600 |
| $50,000 | $12,000 | $38,000 |
| $100,000 | $24,000 | $76,000 |
| $1,000,000 | $240,000 | $760,000 |
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
Tennessee tax on winnings
None
Tennessee doesn't tax lottery winnings; federal tax still applies.
Withheld when you're paid
24% federal 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.
Reviewed by Bishop Woosley, former Director of the Arkansas Scholarship Lottery and NASPL President.
More Tennessee Lottery Help
What each game pays, the best scratch-offs, and taxes in other states.
Frequently Asked Questions
Answers about the Tennessee Lottery
Does Tennessee tax lottery winnings?
No. Tennessee has no state income tax on lottery winnings, but federal income tax applies.
What is the Tennessee lottery tax rate?
Tennessee has no state tax on lottery winnings; federal income tax applies. 24% federal tax is 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 Tennessee?
Nothing is withheld: the Tennessee 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.
How much tax do you pay on a $10,000 lottery ticket in Tennessee?
The Tennessee Lottery withholds $2,400 and pays you $7,600. The prize is still taxable income, taxed at your federal rate when you file: from 10% to 37%, depending on your income.
How much tax do you pay on $1 million in lottery winnings in Tennessee?
The Tennessee Lottery withholds $240,000 and pays you $760,000. The prize is still taxable income, taxed at your federal rate when you file: from 10% to 37%, depending on your income.
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 Tennessee?
The next Powerball jackpot is an estimated $538 million, or $220.6 million as one cash payment. After federal tax (Tennessee has none), the cash leaves a single winner about $139 million. Taken as 30 yearly payments, it pays about $340.4 million after taxes in all.
How much is the Mega Millions jackpot after taxes in Tennessee?
The next Mega Millions jackpot is an estimated $385 million, or $154.8 million as one cash payment. After federal tax (Tennessee has none), the cash leaves a single winner about $97.6 million. Taken as 30 yearly payments, it pays about $244 million after taxes in all.
How much is the Lotto America jackpot after taxes in Tennessee?
The next Lotto America jackpot is an estimated $2.2 million, or $880,000 as one cash payment. After federal tax (Tennessee has none), the cash leaves a single winner about $604,000.
How much is the Powerball Xs & Os jackpot after taxes in Tennessee?
The next Powerball Xs & Os jackpot is an estimated $1.5 million, paid as one cash payment. After federal tax (Tennessee has none), the cash leaves a single winner about $995,000.
How much is the Tennessee Cash jackpot after taxes in Tennessee?
The next Tennessee Cash jackpot is an estimated $900,000, paid as one cash payment. After federal tax (Tennessee has none), the cash leaves a single winner about $617,000.
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 Tennessee, you choose within 60 days of claiming the prize.
Are scratch-off winnings taxed in Tennessee?
Yes, the same as draw game prizes: scratch-off winnings are taxable income, and 24% federal tax is withheld from prizes over $5,000. Tennessee doesn't tax them.
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