Does Illinois tax lottery winnings?
Yes. Illinois taxes lottery prizes as ordinary income, at a flat 4.95% in 2026. Illinois withholds 4.95% for state tax on prizes of $1,000 or more when the prize is paid. For a large prize, that covers most of the state tax you will owe.
Source: Illinois Department of Revenue, checked October 5, 2026.
Illinois Powerball payout after taxes
A single winner living in Illinois who takes the cash option on the $467 Million Powerball jackpot keeps about $111,738,200, after about $71,138,000 in federal tax and $9,523,800 in Illinois tax. Recalculated daily.
| Game | Illinois tax (lump sum) | Lump sum take-home | Annuity take-home (30 payments) |
|---|---|---|---|
| Powerball$467 Million jackpot · $192.4 Million cash | $9,523,800 | $111,738,200 | $272,593,491 |
| Mega Millions$345 Million jackpot · $139.6 Million cash | $6,910,200 | $81,087,800 | $201,772,492 |
How much is $1 million after taxes in Illinois?
About $630,500. A single filer with no other income pays about $320,000 in federal tax and $49,500 in Illinois tax on a $1,000,000 prize. When you claim, $289,500 is withheld, and the rest of the tax is due when you file.
| Prize (cash) | Federal tax | Illinois tax | Take-home |
|---|---|---|---|
| $1,000,000 | $320,000 | $49,500 | $630,500 |
| $2,000,000 | $690,000 | $99,000 | $1,211,000 |
| $10,000,000 | $3,650,000 | $495,000 | $5,855,000 |
| $100,000,000 | $36,950,000 | $4,950,000 | $58,100,000 |
| $1,000,000,000 | $369,950,000 | $49,500,000 | $580,550,000 |
Lump sum, single filer with no other income, 2026 federal and Illinois rates. A $2,000,000 prize is the Powerball or Mega Millions match-5 prize with the multiplier.
Claiming in Illinois: the 60-day cash option clock starts at the drawing
- Illinois Powerball and Mega Millions prizes, like all Illinois draw-game prizes, must be claimed within one year of the drawing date (Illinois Draw Game Rules § 2.6(B)).
- An Illinois Powerball or Mega Millions jackpot winner gets 60 days, starting the day after the drawing, to claim the prize and select the cash option; if the prize is not claimed with a selection by close of business on the 60th day, it is paid as an annuity. Unlike New York, Ohio or Michigan, the clock starts at the drawing, not at the claim (Illinois Draw Game Rules § 8.5(A)).
- The Illinois Lottery has five prize centers: Chicago, Des Plaines, Rockford, Springfield and Fairview Heights. Claims up to $25,000 are generally paid by check the same day; larger claims within four to six weeks (Illinois Lottery Winner Handbook).
- Illinois law sets the claim period in each game's rules, and a prize can only be claimed with the winning ticket itself: no claim is honored on the assertion that the ticket was lost or stolen. Prize money that goes unclaimed is transferred to the Common School Fund (20 ILCS 1605/19).
Can you stay anonymous in Illinois?
Only in some cases. At least $250,000: request confidentiality when claiming (source). The guide to what to do if you win the lottery compares the rules in every state.
Billion-dollar jackpots won in Illinois
Two of the largest lottery jackpots were sold in Illinois. Take-home is for a single Illinois resident at 2026 rates.
| Drawing | Jackpot | Lump sum take-home today |
|---|---|---|
| Mega Millions, July 29, 2022 | $1.34 Billion | $453,130,250 |
| Powerball, August 12, 2026 | $1.04 Billion | $261,565,250 |
Illinois compared with neighboring states
$467 Million Powerball jackpot, lump sum, by state of residence. A winner living in Indiana keeps $3,848,000 more than an Illinois resident, and one living in Wisconsin keeps $5,186,378 less.
| State of residence | State & local tax | Lump sum take-home |
|---|---|---|
| Indiana | $5,675,800 | $115,586,200 |
| Kentucky | $6,734,000 | $114,528,000 |
| Iowa | $7,311,200 | $113,950,800 |
| Missouri | $9,042,619 | $112,219,381 |
| Illinois | $9,523,800 | $111,738,200 |
| Wisconsin | $14,710,178 | $106,551,822 |
Assumes the ticket was bought in the state of residence. Taxes on lottery winnings explains what happens when you buy in another state.
Estimates for a single filer with no other income unless noted. Formulas and sources: methodology. Every state's rates: lottery tax by state.