How much tax does Delaware take from lottery winnings?

Nothing is withheld for Delaware: withholds nothing; prizes are still taxable when you file. The federal 24% still applies to prizes over $5,000, and a winner who lives in another state may owe that state tax on it.

Do I pay federal tax on a Delaware lottery prize?

Yes. The lottery withholds 24% for the IRS when the prize, less the ticket, is over $5,000, and reports prizes of $2,000 or more on Form W-2G. A large prize is taxed at up to 37% at filing, so the 24% is rarely the end of it: on a $1,000,000 prize a single filer earning $50,000 owes about $334,680 more federally, $94,680 more than was withheld.

How much of a $10,000 lottery prize do you keep in Delaware?

The cheque is $7,600: $2,400 withheld federally. After the federal return, a single filer earning $50,000 keeps about $8,800.

How much would a Powerball jackpot winner keep in Delaware?

On the $716 million jackpot for the October 28, 2026 drawing, a single winner taking the $307.2 million cash option keeps about $194 million after federal tax at filing before Delaware income tax, which is due when you file. Every state, side by side.

Where do I claim a big prize in Delaware?

At Delaware Lottery, which must pay a prize on a ticket it sold; a ticket bought in Delaware is claimed there whatever state you live in. delottery.com lists its claim centres and deadlines.

Delaware Lottery Taxes

Delaware withholds no state tax from lottery prizes. The federal 24% is still withheld from prizes over $5,000. Withholds nothing; prizes are still taxable when you file. A Powerball jackpot winner taking the cash here keeps about $194 million of $307.2 million before Delaware income tax, which is due when you file.

Source: Delaware Lottery FAQ (delottery.com), checked October 18, 2026.

What a prize is worth in Delaware

Three prizes, as the cheque is written and after the federal return. The return is a single filer earning $50,000 besides the prize, with the 2026 brackets and standard deduction; other income changes the bill, which is what the calculator is for. Delaware withholds nothing, but a prize is taxable on its return, so what is kept here is before that tax.

$1,000 prize

$880

kept after the federal return

Federal withheld: $0
Delaware withheld: $0
Cheque: $1,000
Federal tax on it: $120

$10,000 prize

$8,800

kept after the federal return

Federal withheld: $2,400
Delaware withheld: $0
Cheque: $7,600
Federal tax on it: $1,200

$1,000,000 prize

$665,320

kept after the federal return

Federal withheld: $240,000
Delaware withheld: $0
Cheque: $760,000
Federal tax on it: $334,680

A $1,000 prize has nothing withheld federally and is under the $2,000 at which the lottery reports it on Form W-2G, but it is still taxable income. The withholding is a deposit against the federal bill, not the bill: on $1,000,000 the 24% falls $94,680 short, and on $1,000, with nothing withheld, about $120 is still owed.

The Powerball jackpot after Delaware tax

The advertised Powerball jackpot for the October 28, 2026 drawing is $716 million, or $307.2 million as a lump sum. A single winner taking the cash in Delaware:

Cheque

$233.5 million

after 24% federal withheld

Kept after federal tax

$193.6 million

before Delaware income tax, due when you file

Annuity, first year

$6.8 million

after tax, 30 payments rising 5% a year

What the same jackpot leaves a winner in every state · Delaware Powerball: add-ons and what a ticket is worth here

The federal rules, the same in every state

24% is withheld for the IRS when a prize, less the ticket, is over $5,000.
A prize of $2,000 or more (and at least 300 times the ticket) is reported on Form W-2G. The threshold was $600 until 2025.
Without a Social Security number on file, 24% backup withholding applies from the reporting threshold. A winner who is not a US resident has 30% withheld.
Every prize is taxable income, reported or not. A jackpot is taxed at up to 37% at filing.

Source: IRS, Instructions for Forms W-2G and 5754 (2026).

Work out your own number

The lottery tax calculator takes any prize, lump sum or annuity, filing status and state, with Delaware's rate already in it. Claiming a prize, and the tax that comes with it covers claim deadlines and what to do first.

Delaware lottery tax questions

How much tax does Delaware take from lottery winnings?: Nothing is withheld for Delaware: withholds nothing; prizes are still taxable when you file. The federal 24% still applies to prizes over $5,000, and a winner who lives in another state may owe that state tax on it.
Do I pay federal tax on a Delaware lottery prize?: Yes. The lottery withholds 24% for the IRS when the prize, less the ticket, is over $5,000, and reports prizes of $2,000 or more on Form W-2G. A large prize is taxed at up to 37% at filing, so the 24% is rarely the end of it: on a $1,000,000 prize a single filer earning $50,000 owes about $334,680 more federally, $94,680 more than was withheld.
How much of a $10,000 lottery prize do you keep in Delaware?: The cheque is $7,600: $2,400 withheld federally. After the federal return, a single filer earning $50,000 keeps about $8,800.
How much would a Powerball jackpot winner keep in Delaware?: On the $716 million jackpot for the October 28, 2026 drawing, a single winner taking the $307.2 million cash option keeps about $194 million after federal tax at filing before Delaware income tax, which is due when you file. Every state, side by side.
Where do I claim a big prize in Delaware?: At Delaware Lottery, which must pay a prize on a ticket it sold; a ticket bought in Delaware is claimed there whatever state you live in. delottery.com lists its claim centres and deadlines.

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