Indiana Lottery Tax Calculator - 2.95% State Tax

The Indiana state income tax rate on lottery winnings in 2026 is 2.95%. Calculate your exact take-home amount from any Indiana lottery game after federal and state taxes.

Indiana State Income Tax: 2.95%

In addition to federal taxes, Indiana residents owe 2.95% state tax on lottery winnings.

Winning Amount

Advertised Jackpot

Payout Type

Cash Value Factor (%)

60%

Your Take-Home (After All Taxes)

$180,150,000

Effective Tax Rate: 40.0% (Federal 37% + State 2.95%)

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%)

Indiana State Tax

$8,850,000

2.95% estimated state tax rate

Withheld at payout: $9,450,000 (3.15%)

Estimated state over-withheld: $600,000

Calculator inputs stay on your device (local processing).

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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 Indiana Lottery Taxes Work

This calculator uses a conservative top-bracket federal estimate (37%) and shows the typical federal withholding (24%) separately. Indiana state tax is estimated using the Indiana adjusted gross income tax rate (2.95% for 2026). Note: the Hoosier Lottery may withhold a different state percentage at payout (e.g., 3.15% on winnings exceeding $1,200), which can differ from your final Indiana tax after filing.

Indiana Tax Calculation

Lump Sum = Advertised × 60%. Federal Tax = Lump Sum × 37%. State Tax = Lump Sum × 2.95%. 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

Indiana state income tax: 2.95%

Indiana State Income Tax Rate on Lottery Winnings 2026 Calculator

The Indiana state income tax rate on lottery winnings 2026 is 2.95%. This calculator shows you your exact after-tax take-home from Powerball, Mega Millions, and other Indiana lottery games, including both federal and state taxes.

Indiana State Tax Rate (2.95% in 2026)

Indiana has a flat adjusted gross income tax rate. For 2026, the Indiana individual rate is 2.95%. This calculator applies 2.95% to the payout amount as an estimate of Indiana state tax.

Indiana State Withholding (Hoosier Lottery)

For certain prizes, the Hoosier Lottery withholds state tax at payout (commonly 3.15% on winnings exceeding $1,200). Withholding is a prepayment/credit; your final state tax depends on your return.

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%).

Indiana Lottery Tax FAQ

Q:What is Indiana's state tax rate on lottery winnings in 2026?

Indiana’s individual adjusted gross income tax rate for 2026 is 2.95%, which this calculator uses as the estimated Indiana state tax rate.

Q:Does the Hoosier Lottery withhold Indiana state tax?

Yes. The Hoosier Lottery commonly withholds state tax at payout (e.g., 3.15% on winnings exceeding $1,200). Withholding is a credit; final tax depends on your return.

Q:Why is the calculator’s total tax higher than the amount withheld?

Because withholding is an estimate taken at payout. The calculator estimates final federal tax (up to 37%) plus Indiana state tax (2.90%). Your final bill depends on your full-year return.