Bits & Odds

Louisiana Lottery Taxes

Louisiana withholds 3% from lottery prizes (prizes of $5,000 or more), on top of the federal 24% on prizes over $5,000. A Powerball jackpot winner taking the cash here keeps about $184 million of $307.2 million.

Source for Louisiana's rate: Louisiana Lottery, claim a prize (louisianalottery.com), checked October 18, 2026.

What a prize is worth in Louisiana

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 Louisiana is worked out on its own return at its own income-tax rates, so the state line here is the withholding.

$1,000 prize
$880
kept after the federal return
Federal withheld
$0
Louisiana withheld
$0
Cheque
$1,000
Federal tax on it
$120
$10,000 prize
$8,500
kept after the federal return
Federal withheld
$2,400
Louisiana withheld
$300
Cheque
$7,300
Federal tax on it
$1,200
$1,000,000 prize
$635,320
kept after the federal return
Federal withheld
$240,000
Louisiana withheld
$30,000
Cheque
$730,000
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. Louisiana starts withholding on prizes of $5,000 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 Louisiana 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 Louisiana:

Cheque
$224.3 million
after 24% federal and 3% state withheld
Kept after filing
$184.4 million
top federal rate 37%
Annuity, first year
$6.5 million
after tax, 30 payments rising 5% a year
Rank
14 of 46
lotteries, by what a winner keeps

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

The federal rules, the same in every state

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 Louisiana's rate already in it. Claiming a prize, and the tax that comes with it covers claim deadlines and what to do first.

Louisiana lottery tax questions

How much tax does Louisiana take from lottery winnings?
Louisiana withholds 3% (prizes of $5,000 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 Louisiana 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 Louisiana?
The cheque is $7,300: $2,400 withheld federally and $300 for Louisiana. After the federal return, a single filer earning $50,000 keeps about $8,500.
How much would a Powerball jackpot winner keep in Louisiana?
On the $716 million jackpot for the October 28, 2026 drawing, a single winner taking the $307.2 million cash option keeps about $184 million after federal tax at filing and Louisiana's 3%. That ranks 14 of 46 lotteries. Every state, side by side.
Where do I claim a big prize in Louisiana?
At Louisiana Lottery, which must pay a prize on a ticket it sold; a ticket bought in Louisiana is claimed there whatever state you live in. louisianalottery.com lists its claim centres and deadlines.