Illinois Lottery Tax Calculator - 4.95% State Tax

The Illinois state income tax rate on lottery winnings in 2026 is 4.95%. Calculate your exact take-home amount from any Illinois lottery game after federal and state taxes.

Illinois State Income Tax: 4.95%

In addition to federal taxes, Illinois residents owe 4.95% state tax on lottery winnings.

Winning Amount

Advertised Jackpot

Payout Type

Cash Value Factor (%)

60%

Your Take-Home (After All Taxes)

$174,150,000

Effective Tax Rate: 41.9% (Federal 37% + State 4.95%)

Lump Sum Amount

$300,000,000

(60% of advertised)

Fed Withholding

$72,000,000

24% immediate

Additional Federal Tax

$39,000,000

Tax gap (37% - 24%)

Illinois State Tax

$14,850,000

4.95% estimated state tax rate

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Disclaimer: All calculators on this website are provided for informational and illustrative purposes only. The results do not constitute professional advice (including legal, tax, financial, medical, or other advice). Despite careful programming, we assume no liability for the accuracy, completeness, or timeliness of the results. For matters requiring professional advice, we recommend consulting an appropriate specialist (e.g., a tax advisor, lawyer, accountant, or physician).

How Illinois Lottery Taxes Work

This calculator uses a conservative top-bracket federal estimate (37%) and shows the typical federal withholding (24%) separately. Illinois applies a flat 4.95% individual income tax rate, which this calculator uses as the estimated Illinois state tax rate. Illinois also withholds state income tax on many lottery payments (e.g., $1,000+).

Illinois Tax Calculation

Lump Sum = Advertised × 60%. Federal Tax = Lump Sum × 37%. State Tax = Lump Sum × 4.95%. Take-Home = Lump Sum - (Federal + State Tax).

Key Terms

Lump Sum

60% of advertised jackpot (cash value estimate)

Federal Withholding

24% taken by lottery immediately

Tax Gap

Difference between 24% withheld and 37% owed federally

State Tax

Illinois state income tax: 4.95%

Illinois State Income Tax Rate on Lottery Winnings 2026 Calculator

The Illinois state income tax rate on lottery winnings 2026 is 4.95%. This calculator shows you your exact after-tax take-home from Powerball, Mega Millions, and other Illinois lottery games, including both federal and state taxes.

Illinois State Tax Rate (4.95%)

Illinois has a flat 4.95% individual income tax rate. Lottery winnings that are taxable income are generally subject to Illinois income tax at that rate.

Illinois Withholding on Lottery Payments

Illinois requires withholding of Illinois income tax each time a single payment of Illinois lottery winnings is $1,000 or more. The withholding is at the full Illinois individual income tax rate (no exemptions).

Federal Tax: Withholding vs. Final

Federal withholding is commonly 24% at payout for larger prizes, but your final federal tax depends on your total taxable income and can be higher (up to 37%).

Illinois Lottery Tax FAQ

Q:What is Illinois's state tax rate on lottery winnings?

Illinois has a flat 4.95% individual income tax rate. Lottery winnings that are taxable income are generally subject to Illinois income tax at that rate.

Q:Does Illinois withhold state tax from lottery winnings?

Yes. Illinois requires withholding of Illinois income tax each time a single payment of Illinois lottery winnings is $1,000 or more (withholding at the full Illinois income tax rate).

Q:Why is the calculator’s total tax higher than 24%?

Because 24% is typically federal withholding at payout, not the final federal tax. This calculator estimates final federal tax (up to 37%) plus Illinois state tax (4.95%).