New Jersey Lottery Tax Calculator
Calculate your take-home winnings after 8.00% New Jersey state tax and federal taxes.
State Tax Rate
8.00%
New Jersey Income Tax
Federal Tax Rate
24–37%
24% withheld upfront
Max Combined Rate
45.00%
Federal + state
New Jersey withholds 8.00% state income tax on lottery prizes above the threshold, in addition to 24% federal withholding. Your maximum combined rate could reach 45.00%.
Enter Your Winnings
Lump sum is approximately 55% of the advertised jackpot
Your estimated take-home winnings
$343,953
After 37.46% effective tax rate
Tax Breakdown
Cash value before taxes
Winnings Distribution
Frequently Asked Questions — New Jersey Lottery Taxes
How much tax do I pay on a $1 million lottery win in New Jersey?
On a $1 million lottery win in New Jersey, the lump sum cash value is approximately $550,000. Federal withholding is 24% ($132,000) and New Jersey state tax is 8.00% ($44,000). Your estimated take-home lump sum is approximately $374,000 — though your final federal tax bill may be higher depending on your total income for the year.
Does New Jersey tax lottery winnings?
Yes. New Jersey taxes lottery winnings at a 8.00% state income tax rate. This is in addition to federal taxes of 24-37%. The New Jersey lottery withholds state taxes automatically on prizes above the threshold.
What is the lottery tax rate in New Jersey?
In New Jersey, the lottery tax rate is 8.00% at the state level, plus federal taxes of 24-37%. The federal government withholds 24% upfront on prizes over $5,000. Combined, lottery winners in New Jersey may pay up to 45.00% in total taxes.
Lottery Tax in New Jersey
New Jersey imposes a 8.00% state income tax on lottery winnings (New Jersey Income Tax). This is in addition to federal taxes of up to 37%. Combined, lottery winners in New Jersey may pay up to 45.00% in total taxes.
The New Jersey lottery withholds state taxes automatically on prizes over a certain threshold. If you are a non-resident winner, different withholding rates may apply.
New Jersey Lottery — Key Facts for Winners
New Jersey taxes lottery winnings at 8% for prizes above $10,000. New Jersey's rate is one of the higher state lottery tax rates in the country. However, prizes of $10,000 or less are exempt from state tax in New Jersey. The NJ Lottery withholds state taxes at source on large wins. Winners in New Jersey face a combined federal and state burden that can exceed 45%.
Tax Sources & References
Federal withholding rates are based on IRS Topic No. 419 — Gambling Income and Losses. State tax rates are sourced from each state's department of revenue. Official New Jersey lottery rules and prize information are published on the New Jersey Lottery official website.
Disclaimer
This calculator provides estimates only and does not constitute tax advice. Actual tax amounts may vary based on your individual circumstances, deductions, and other income. Please consult a qualified tax professional for advice specific to your situation.