North Carolina lottery tax at a glance
| State tax on a jackpot | 3.99% flat rate |
|---|---|
| Withheld when you claim a jackpot | 24% federal + 3.99% North Carolina |
| $1 million prize after taxes | $640,100 |
| $835 Million Powerball jackpot, cash option | $211,246,790 |
| Time to claim a Powerball jackpot | 180 days |
| Stay anonymous | In some cases |
Single filer with no other income, lump sum, 2026 rates. Details and sources for each line are below.
Does North Carolina tax lottery winnings?
Yes. North Carolina taxes lottery prizes as ordinary income, at a flat 3.99% in 2026. North Carolina withholds 3.99% for state tax on prizes of $600 or more when the prize is paid. For a large prize, that covers most of the state tax you will owe.
Source: North Carolina Department of Revenue (“Winnings of $600 or more paid by the North Carolina State Lottery Commission at the rate of 3.99 percent.”), checked November 3, 2026.
North Carolina withholds from much smaller prizes
Federal withholding starts only when a prize, minus the ticket, is more than $5,000. North Carolina withholds 3.99% from prizes of $600 or more, so a $1,000 prize has $40 withheld for the state and nothing for federal tax. On $1 million the flat rate gives $39,900 of state tax, equal to the withholding, and the result is $640,100 once the $80,000 federal balance is paid. The model omits North Carolina’s standard deduction, so the state estimate is slightly high.
For comparison, a $10,000 cash prize on top of $60,000 of other income adds $1,550 in federal tax and $399 in modeled North Carolina tax, leaving $8,051 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.
North Carolina Powerball and Mega Millions payout after taxes
A single winner living in North Carolina who takes the cash option on the $835 Million Powerball jackpot keeps about $211,246,790, after about $132,373,000 in federal tax and $14,280,210 in North Carolina tax. Recalculated daily.
| Game | North Carolina tax (lump sum) | Lump sum take-home | Annuity take-home (30 payments) |
|---|---|---|---|
| Powerball$835 Million jackpot · $357.9 Million cash | $14,280,210 | $211,246,790 | $494,233,492 |
| Mega Millions$482 Million jackpot · $203.6 Million cash | $8,123,640 | $120,194,360 | $285,928,196 |
How much is $1 million after taxes in North Carolina?
About $640,100. A single filer with no other income pays about $320,000 in federal tax and $39,900 in North Carolina tax on a $1,000,000 prize. When you claim, $279,900 is withheld, and the rest of the tax is due when you file.
| Prize (cash) | Federal tax | North Carolina tax | Take-home |
|---|---|---|---|
| $1,000,000 | $320,000 | $39,900 | $640,100 |
| $2,000,000 | $690,000 | $79,800 | $1,230,200 |
| $10,000,000 | $3,650,000 | $399,000 | $5,951,000 |
| $100,000,000 | $36,950,000 | $3,990,000 | $59,060,000 |
| $1,000,000,000 | $369,950,000 | $39,900,000 | $590,150,000 |
Lump sum, single filer with no other income, 2026 federal and North Carolina 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 North Carolina: 180 days, and $100,000-plus prizes in Raleigh
- North Carolina draw-game prizes must be claimed within 180 calendar days of the drawing. A mailed ticket must arrive by then; a postmark does not count (NC Education Lottery).
- Prizes of $600 up to $99,999 are claimed online. Prizes of $100,000 or more must be claimed in person at NC Lottery headquarters in Raleigh, after starting the claim online and waiting for instructions (NC Education Lottery).
- North Carolina withholds 3.99% state tax from lottery prizes of $600 or more, a much lower threshold than the $5,000 at which federal withholding starts (NC-30 Withholding Tables and Instructions, 2026).
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 North Carolina?
Only in some cases. At least $50 million: elect a 90-day delay of identifying information. Protective-order and Address Confidentiality Program exceptions also apply (source). The guide to what to do if you win the lottery compares the rules in every state.
North Carolina compared with neighboring states
$835 Million Powerball jackpot, lump sum, by state of residence. A winner living in Tennessee keeps $14,280,210 more than a North Carolina resident, and one living in South Carolina keeps $7,193,134 less.
| State of residence | State & local tax | Lump sum take-home |
|---|---|---|
| Tennessee | $0 | $225,527,000 |
| North Carolina | $14,280,210 | $211,246,790 |
| Georgia | $17,858,462 | $207,668,538 |
| Virginia | $20,578,993 | $204,948,007 |
| South Carolina | $21,473,344 | $204,053,656 |
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.