CA Tools

Lottery and Gambling Winnings Tax Calculator

Won a prize? See whether California taxes it, and roughly what you keep after federal tax.

Reviewed by the CA Tools Editorial Team · Data last verified · Official sources · Update schedule

California does not tax California Lottery winnings, including Powerball and Mega Millions tickets bought in California. It does tax every other kind of gambling win (casinos, card rooms, horse racing, sports bets, raffles, other states' lotteries) as ordinary income. The IRS taxes all of it, and withholds 24% from lottery prizes over $5,000.

For California residents. State tax uses the 2025 California rates and federal tax the 2026 rates, both with the standard deduction.

Check Your Winnings

Lottery Winnings Tax Calculator

For a jackpot, enter what you're paid this year (the cash option, or one annuity payment).
Choose what you won and your filing status, and enter your winnings and other income.

How this is calculated

  • California tax: $0 on California Lottery prizes (Schedule CA (540), line 8b). Any other winnings are added to your other income and taxed at your 2025 California rates; the result is the extra tax the winnings cause.
  • Federal tax: the same calculation with the 2026 federal brackets, on all winnings.
  • Federal withholding: 24% of the winnings minus the wager, when that is more than $5,000, for lotteries, sweepstakes and pools, and for other wagers that pay at least 300 times the bet. Slot machines, bingo and keno aren't subject to this withholding.

Gambling losses are not subtracted here. You can deduct them only if you itemize, up to your winnings (federally, only 90% of losses count from 2026), and California doesn't allow losses on California Lottery tickets. Report winnings from a W-2G on your federal return; California picks them up from your federal AGI and subtracts California Lottery prizes on Schedule CA.

Frequently Asked Questions

Does California tax lottery winnings?

Not California Lottery winnings. California excludes prizes from the California Lottery from state income tax, including SuperLotto Plus, Powerball and Mega Millions tickets bought in California, and scratchers. Federal income tax still applies.

Does California tax lottery winnings from another state?

Yes. A California resident who wins another state's lottery pays California income tax on the prize at ordinary rates. The exclusion only covers the California Lottery.

Are casino and other gambling winnings taxable in California?

Yes. Winnings from casinos, card rooms, tribal casinos, horse racing, raffles and other wagering are taxable by California as ordinary income, at rates up to 13.3% including the 1% tax on income over $1 million.

How much federal tax is withheld from lottery winnings?

24% of the prize minus the cost of the ticket, when that is more than $5,000. Withholding often falls short: large prizes are taxed at up to 37% federally, so many winners owe more when they file.

Can I deduct gambling losses in California?

Only if you itemize, and only up to your gambling winnings. Losses on California Lottery tickets are not deductible on your California return, since the winnings aren't taxed.

This tool provides an educational estimate only. It assumes you are a California resident and takes the standard deduction; nonresidents, big jackpots paid as annuities, and gambling businesses have other rules.