Kentucky Lottery Tax Calculator - 5% State Tax

The Kentucky state income tax rate on lottery winnings in 2026 is 5%. Calculate your exact take-home amount from any Kentucky lottery game after federal and state taxes.

Kentucky State Income Tax: 5%

In addition to federal taxes, Kentucky residents owe 5% state tax on lottery winnings.

Winning Amount

Advertised Jackpot

Payout Type

Cash Value Factor (%)

60%

Your Take-Home (After All Taxes)

$174,000,000

Effective Tax Rate: 42.0% (Federal 37% + State 5%)

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%)

Kentucky State Tax

$15,000,000

5% estimated state tax rate

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Lottery tax rates vary by state. Select another state below to see its lottery tax calculator.

Showing 24 states. Use the search above to find more.

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 Kentucky Lottery Taxes Work

Kentucky residents face federal (37%) and state (5%) taxes. The IRS withholds 24%, leaving a federal gap. Our calculator shows your complete tax burden.

Kentucky Tax Calculation

Lump Sum = Advertised × 60%. Federal Tax = Lump Sum × 37%. State Tax = Lump Sum × 5%. 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

Kentucky state income tax: 5%

Kentucky State Income Tax Rate on Lottery Winnings 2026 Calculator

The Kentucky state income tax rate on lottery winnings 2026 is 5%. This calculator shows you your exact after-tax take-home from Powerball, Mega Millions, and other Kentucky lottery games, including both federal and state taxes.

Kentucky's 5% State Tax

Kentucky imposes 5% on lottery winnings. On $60M, that's $3M in state taxes. Kentucky's 5% is favorable to moderate nationally.

Total Tax Burden

Federal 37% + Kentucky 5% = 42%. With federal gap, total is typically 40-42% of your lump sum.

Kentucky Lottery History

The Kentucky Lottery generates revenue for state education programs.

Federal vs State Withholding

24% federal withholding, 37% actual, plus 5% Kentucky state.

Lump Sum vs. Annuity

Kentucky taxes both at 5%. Annuity may help federal planning.

Regional Comparison

Kentucky's 5% is favorable among southeastern states.

Tax Planning Strategy

Consult professionals before claiming. Calculate all tax obligations.

Kentucky Games

Powerball, Mega Millions, Kentucky Lotto all taxed at 5%.

Kentucky Lottery Tax FAQ

Q:What is Kentucky's state tax rate?

Kentucky imposes a flat 5% state income tax on lottery prizes.

Q:Total tax rate?

Federal 37% + Kentucky 5% = 42%. With federal gap, typically 40-42%.

Q:Same for lump sum and annuity?

Yes, 5% for both.

Q:Can I reduce it?

No, 5% is mandatory and automatically withheld.

Q:If I move?

If claimed in Kentucky, you owe the 5% on that win.

Q:Compared to neighbors?

Kentucky's 5% is favorable in the Southeast.

Q:Revenue use?

Kentucky lottery revenue funds state education.