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.
A flat state rate does not make the federal rate flat
The model’s Illinois tax on $1 million is $49,500 at 4.95%. Federal tax is a separate $320,000, leaving $630,500. Illinois withholding and estimated state tax can be close while additional federal tax is still due. The model omits Illinois personal exemptions and credits, so lower-income prize estimates may overstate state tax.
For comparison, a $10,000 cash prize on top of $60,000 of other income adds $1,550 in federal tax and $495 in modeled Illinois tax, leaving $7,955 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.
Illinois Powerball payout after taxes
A single winner living in Illinois who takes the cash option on the $674 Million Powerball jackpot keeps about $164,853,950, after about $104,993,000 in federal tax and $14,053,050 in Illinois tax. Recalculated daily.
| Game | Illinois tax (lump sum) | Lump sum take-home | Annuity take-home (30 payments) |
|---|---|---|---|
| Powerball$674 Million jackpot · $283.9 Million cash | $14,053,050 | $164,853,950 | $392,756,989 |
| Mega Millions$443 Million jackpot · $186.5 Million cash | $9,231,750 | $108,313,250 | $258,661,493 |
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. Smaller prizes and other states: lottery winnings after taxes by amount.
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
$674 Million Powerball jackpot, lump sum, by state of residence. A winner living in Indiana keeps $5,678,000 more than an Illinois resident, and one living in Wisconsin keeps $7,656,878 less.
| State of residence | State & local tax | Lump sum take-home |
|---|---|---|
| Indiana | $8,375,050 | $170,531,950 |
| Kentucky | $9,936,500 | $168,970,500 |
| Iowa | $10,788,200 | $168,118,800 |
| Missouri | $13,343,119 | $165,563,881 |
| Illinois | $14,053,050 | $164,853,950 |
| Wisconsin | $21,709,928 | $157,197,072 |
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.