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.
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.
- Federal withheld
- $0
- Louisiana withheld
- $0
- Cheque
- $1,000
- Federal tax on it
- $120
- Federal withheld
- $2,400
- Louisiana withheld
- $300
- Cheque
- $7,300
- Federal tax on it
- $1,200
- 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:
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
- 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.
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.