Does California tax lottery winnings?
No, as long as the prize comes from the California Lottery, which sells Powerball and Mega Millions tickets in the state. California taxes most income at rates up to 13.3%, but it exempts California Lottery prizes from state income tax. The exemption applies only to the California Lottery, so a California winner of a California ticket pays federal tax alone.
Source: California Franchise Tax Board (“We do not tax winnings from the California Lottery, including SuperLotto, Powerball, and Mega Millions”), checked October 1, 2026.
The exemption follows the lottery that issued the prize
A $1 million California Lottery cash prize leaves $680,000 in this model: federal tax $320,000, California tax $0. A ticket bought in another state does not qualify for the California Lottery exemption. Selecting California here assumes an in-state ticket; it does not calculate the tax on an out-of-state prize.
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 California 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.
California Powerball and Mega Millions payout after taxes
With nothing owed to the state, a single winner in California keeps about $178,907,000 from the $674 Million Powerball jackpot's $283.9 Million cash option, and about $117,545,000 from the $443 Million Mega Millions jackpot's $186.5 Million cash option, or $280,589,993 over 30 annual payments.
How California pays smaller prizes
In California, Powerball prizes below the jackpot are pari-mutuel too: the money for each prize level is shared among that level's California winners, so a California match-5 or smaller prize varies with ticket sales and the number of winners and can differ from the fixed amount on the Powerball website (California Lottery). The calculator above uses the prize you enter, so for a California non-jackpot prize enter the amount the Lottery actually announced.
How much is $1 million after taxes in California?
About $680,000, the same as anywhere without a state lottery tax: $320,000 of federal tax for a single filer with no other income, of which $240,000 is withheld at the claim.
Claiming in California: one year for a jackpot, 180 days for other prizes
- California gives Powerball and Mega Millions jackpot tickets one year from the winning draw; most other draw-game prizes expire after 180 days (California Lottery).
- Prizes of $600 and over are claimed fastest at a California Lottery District Office; you can also mail the signed ticket and claim form to the Lottery at 730 North 10th Street, Sacramento (California Lottery).
Can you stay anonymous in California?
No. Full name, prize, retailer and win date are public records (source). The guide to what to do if you win the lottery compares the rules in every state.
Billion-dollar jackpots won in California
Five of the largest lottery jackpots were sold in California. Take-home is for a single California resident at 2026 rates.
| Drawing | Jackpot | Lump sum take-home today |
|---|---|---|
| Powerball, November 7, 2022 | $2.04 Billion | $628,538,000 |
| Powerball, October 11, 2023 | $1.76 Billion | $487,733,000 |
| Powerball, January 13, 2016Split 3 ways; take-home is for one ticket | $1.59 Billion | $206,586,050 |
| Mega Millions, December 27, 2024 | $1.27 Billion | $360,347,000 |
| Powerball, July 19, 2023 | $1.08 Billion | $351,653,000 |
California compared with neighboring states
$674 Million Powerball jackpot, lump sum, by state of residence. No neighboring state does better: a California resident keeps $28,104,344 more than a winner living in Oregon. Nevada does not sell lottery tickets, so residents buy them in a neighboring state.
| State of residence | State & local tax | Lump sum take-home |
|---|---|---|
| California | $0 | $178,907,000 |
| NevadaNo lottery sales | $0 | $178,907,000 |
| Arizona | $7,097,500 | $171,809,500 |
| Oregon | $28,104,344 | $150,802,656 |
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.