New Jersey lottery tax at a glance
| State tax on a jackpot | Up to 10.75% |
|---|---|
| Withheld when you claim a jackpot | 24% federal + 8% New Jersey |
| $1 million prize after taxes | $605,424 |
| $835 Million Powerball jackpot, cash option | $187,085,674 |
| Time to claim a Powerball jackpot | 1 year |
| Stay anonymous | Yes |
Single filer with no other income, lump sum, 2026 rates. Details and sources for each line are below.
Does New Jersey tax lottery winnings?
Yes. New Jersey taxes lottery prizes as ordinary income, at rates up to 10.75% in 2026. New Jersey withholds 5% for state tax on prizes over $10,000 up to $500,000 and 8% on prizes over $500,000, including every jackpot; prizes of $10,000 or less are not taxed by New Jersey. Withholding is a prepayment: most of a large prize is taxed at the top rate of 10.75%, so expect to pay the difference when you file.
Source: New Jersey Division of Taxation (“5% for payouts $10,001-$500,000; 8% over $500,000”), checked October 1, 2026.
The $10,000 line and the 8% jackpot withholding
New Jersey does not tax a prize of $10,000 or less, but a larger prize is taxed in full: in this model a $10,000 prize owes $0 in New Jersey tax and a $10,001 prize owes $140. At the top end, a $1 million prize has $80,000 withheld at 8%, while the bracket estimate of New Jersey tax is $74,576, so about $5,424 of the state withholding would come back when you file. New Jersey exemptions and credits are omitted.
For comparison, a $10,000 cash prize on top of $60,000 of other income adds $1,550 in federal tax and $0 in modeled New Jersey tax, leaving $8,450 from the prize. The estimate subtracts tax on the existing income so that only the prize’s additional tax is charged.
Illustrative 2026 calculation, not a reported payout. Rule source. Model assumptions and corrections.
New Jersey Powerball and Mega Millions payout after taxes
A single winner living in New Jersey who takes the cash option on the $835 Million Powerball jackpot keeps about $187,085,674, after about $132,373,000 in federal tax and $38,441,326 in New Jersey tax. Recalculated daily.
| Game | New Jersey tax (lump sum) | Lump sum take-home | Annuity take-home (30 payments) |
|---|---|---|---|
| Powerball$835 Million jackpot · $357.9 Million cash | $38,441,326 | $187,085,674 | $438,775,227 |
| Mega Millions$482 Million jackpot · $203.6 Million cash | $21,854,076 | $106,463,924 | $254,332,729 |
How much is $1 million after taxes in New Jersey?
About $605,424. A single filer with no other income pays about $320,000 in federal tax and $74,576 in New Jersey tax on a $1,000,000 prize. When you claim, $320,000 is withheld, and the rest of the tax is due when you file.
| Prize (cash) | Federal tax | New Jersey tax | Take-home |
|---|---|---|---|
| $1,000,000 | $320,000 | $74,576 | $605,424 |
| $2,000,000 | $690,000 | $182,076 | $1,127,924 |
| $10,000,000 | $3,650,000 | $1,042,076 | $5,307,924 |
| $100,000,000 | $36,950,000 | $10,717,076 | $52,332,924 |
| $1,000,000,000 | $369,950,000 | $107,467,076 | $522,582,924 |
Lump sum, single filer with no other income, 2026 federal and New Jersey rates. A $2,000,000 prize is the Powerball or Mega Millions match-5 prize with the multiplier. Smaller prizes and other states: lottery winnings after taxes by amount.
Claiming in New Jersey: one year, and an annuity ticket can switch to cash
- New Jersey draw-game prizes must be cashed within one year of the original drawing (New Jersey Lottery).
- In New Jersey the payment choice is marked when you buy the ticket. A ticket bought as an annuity can be switched to the lump-sum cash option when you claim, but a ticket bought as cash cannot be switched to the annuity (New Jersey Lottery).
- Jackpot and other large winners (about $25,000 or more) can file in person by appointment at the New Jersey Lottery claim center, Lawrence Park Complex, 1333 Brunswick Avenue Circle in Trenton. Any prize over $599.99 can also be claimed by mail (New Jersey Lottery).
- New Jersey withholds 5% from prizes over $10,000 up to $500,000 and 8% from prizes over $500,000; prizes of $10,000 or less have no New Jersey withholding (New Jersey Lottery).
Bought the ticket in another state? The deadline is set by the lottery that sold it: see lottery claim deadlines in every state.
Can you stay anonymous in New Jersey?
Yes. Winners may choose to remain anonymous indefinitely (source). The guide to what to do if you win the lottery compares the rules in every state.
Billion-dollar jackpots won in New Jersey
One of the largest lottery jackpots was sold in New Jersey. Take-home is for a single New Jersey resident at 2026 rates.
| Drawing | Jackpot | Lump sum take-home today |
|---|---|---|
| Mega Millions, March 26, 2024 | $1.13 Billion | $280,456,424 |
New Jersey compared with neighboring states
$835 Million Powerball jackpot, lump sum, by state of residence. A winner living in Pennsylvania keeps $27,453,796 more than a New Jersey resident, and one living in New York keeps $568,902 less.
| State of residence | State & local tax | Lump sum take-home |
|---|---|---|
| Pennsylvania | $10,987,530 | $214,539,470 |
| Delaware | $23,620,384 | $201,906,616 |
| New Jersey | $38,441,326 | $187,085,674 |
| New York | $39,010,228 | $186,516,772 |
Hypothetical residence-tax comparison only. Tax imposed by the ticket-selling state and credits for tax paid elsewhere are excluded; this is especially important for residents of states without lottery sales. 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.