How much tax does Illinois take from lottery winnings?

Illinois withholds 4.95% (prizes of $1,000 or more). That is withholding, paid on your behalf before the cheque is written; what you finally owe the state is settled on your return.

Do I pay federal tax on a Illinois 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 Illinois?

The cheque is $7,105: $2,400 withheld federally and $495 for Illinois. After the federal return, a single filer earning $50,000 keeps about $8,305.

How much would a Powerball jackpot winner keep in Illinois?

On the $716 million jackpot for the October 28, 2026 drawing, a single winner taking the $307.2 million cash option keeps about $178 million after federal tax at filing and Illinois's 4.95%. That ranks 27 of 46 lotteries. Every state, side by side.

Where do I claim a big prize in Illinois?

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

Illinois Lottery Taxes

Illinois withholds 4.95% from lottery prizes (prizes of $1,000 or more), on top of the federal 24% on prizes over $5,000. A Powerball jackpot winner taking the cash here keeps about $178 million of $307.2 million.

Source for Illinois's rate: Illinois Department of Revenue, Publication 130 (tax.illinois.gov), checked October 18, 2026.

What a prize is worth in Illinois

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. What you finally owe Illinois is worked out on its own return at its own income-tax rates, so the state line here is the withholding.

$1,000 prize

$831

kept after the federal return

Federal withheld: $0
Illinois withheld: $50
Cheque: $951
Federal tax on it: $120

$10,000 prize

$8,305

kept after the federal return

Federal withheld: $2,400
Illinois withheld: $495
Cheque: $7,105
Federal tax on it: $1,200

$1,000,000 prize

$615,820

kept after the federal return

Federal withheld: $240,000
Illinois withheld: $49,500
Cheque: $710,500
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. Illinois starts withholding on prizes of $1,000 or more. 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 Illinois 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 Illinois:

Cheque

$218.3 million

after 24% federal and 4.95% state withheld

Kept after filing

$178.4 million

top federal rate 37%

Annuity, first year

$6.3 million

after tax, 30 payments rising 5% a year

Rank

27 of 46

lotteries, by what a winner keeps

What the same jackpot leaves a winner in every state · Illinois 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 Illinois's rate already in it. Claiming a prize, and the tax that comes with it covers claim deadlines and what to do first.

Illinois lottery tax questions

How much tax does Illinois take from lottery winnings?: Illinois withholds 4.95% (prizes of $1,000 or more). That is withholding, paid on your behalf before the cheque is written; what you finally owe the state is settled on your return.
Do I pay federal tax on a Illinois 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 Illinois?: The cheque is $7,105: $2,400 withheld federally and $495 for Illinois. After the federal return, a single filer earning $50,000 keeps about $8,305.
How much would a Powerball jackpot winner keep in Illinois?: On the $716 million jackpot for the October 28, 2026 drawing, a single winner taking the $307.2 million cash option keeps about $178 million after federal tax at filing and Illinois's 4.95%. That ranks 27 of 46 lotteries. Every state, side by side.
Where do I claim a big prize in Illinois?: At Illinois Lottery, which must pay a prize on a ticket it sold; a ticket bought in Illinois is claimed there whatever state you live in. illinoislottery.com lists its claim centres and deadlines.

Lottery tax calculator Illinois lottery results Powerball jackpot after tax Methodology Sources