Does Georgia tax lottery winnings?
Yes. Georgia taxes lottery prizes as ordinary income, at a flat 4.99% in 2026. Georgia withholds 4.99% for state tax when the prize is paid. For a large prize, that covers most of the state tax you will owe.
Georgia cut its 2026 income tax rate from 5.19% to 4.99% (HB 463, signed May 2026, retroactive to January 1, 2026).
Source: Georgia Lottery (“Georgia state income tax of 4.99%”), checked October 1, 2026.
The standard deduction changes the state estimate
A single filer’s $1 million prize, with no other income, is reduced by the $15,000 Georgia standard deduction: $985,000 × 4.99% = $49,152. For joint filers the deduction is $30,000 and this state estimate becomes $48,403. When other income already uses the deduction, it is not deducted a second time from the prize. Credits and dependent deductions are excluded.
For comparison, a $10,000 cash prize on top of $60,000 of other income adds $1,550 in federal tax and $499 in modeled Georgia tax, leaving $7,951 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.
Georgia Powerball and Mega Millions payout after taxes
A single winner living in Georgia who takes the cash option on the $674 Million Powerball jackpot keeps about $164,741,138, after about $104,993,000 in federal tax and $14,165,862 in Georgia tax. Recalculated daily.
| Game | Georgia tax (lump sum) | Lump sum take-home | Annuity take-home (30 payments) |
|---|---|---|---|
| Powerball$674 Million jackpot · $283.9 Million cash | $14,165,862 | $164,741,138 | $392,509,848 |
| Mega Millions$443 Million jackpot · $186.5 Million cash | $9,305,602 | $108,239,398 | $258,506,750 |
How much is $1 million after taxes in Georgia?
About $630,848. A single filer with no other income pays about $320,000 in federal tax and $49,152 in Georgia tax on a $1,000,000 prize. When you claim, $289,900 is withheld, and the rest of the tax is due when you file.
| Prize (cash) | Federal tax | Georgia tax | Take-home |
|---|---|---|---|
| $1,000,000 | $320,000 | $49,152 | $630,848 |
| $2,000,000 | $690,000 | $99,052 | $1,210,948 |
| $10,000,000 | $3,650,000 | $498,252 | $5,851,748 |
| $100,000,000 | $36,950,000 | $4,989,252 | $58,060,748 |
| $1,000,000,000 | $369,950,000 | $49,899,252 | $580,150,748 |
Lump sum, single filer with no other income, 2026 federal and Georgia 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 Georgia: 180 days to claim, then 60 days to pick cash or annuity
- Georgia draw-game tickets, including Powerball and Mega Millions, are valid for 180 days after the draw date (Georgia Lottery).
- You do not choose cash or annuity when you buy the ticket. A Georgia jackpot winner has 60 days from filing the claim to elect cash or annuity (Georgia Lottery).
Can you stay anonymous in Georgia?
Only in some cases. At least $250,000: elect anonymity in writing when claiming (source). The guide to what to do if you win the lottery compares the rules in every state.
Georgia compared with neighboring states
$674 Million Powerball jackpot, lump sum, by state of residence. A winner living in Florida keeps $14,165,862 more than a Georgia resident, and one living in South Carolina keeps $2,867,482 less. Alabama does not sell lottery tickets, so residents buy them in a neighboring state.
| State of residence | State & local tax | Lump sum take-home |
|---|---|---|
| Florida | $0 | $178,907,000 |
| Tennessee | $0 | $178,907,000 |
| North Carolina | $11,327,610 | $167,579,390 |
| Georgia | $14,165,862 | $164,741,138 |
| AlabamaNo lottery sales | $14,194,960 | $164,712,040 |
| South Carolina | $17,033,344 | $161,873,656 |
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.