State tax on prize winnings, by state

Last reviewed September 2026 · researched from primary sources. Not legal or tax advice — see our Disclaimer.

Rates change yearly. Use this as a guide and confirm your state’s current rate before you file.

Prize winnings are taxed by your home state as ordinary income, on top of federal tax. There is no separate “prize tax” — the prize is added to your income and taxed at your state’s regular rate.

States with no tax on prize income

Residents of these states owe only federal tax on a prize, because there is no state income tax on this kind of income:

• Alaska
• Florida
• Nevada
• New Hampshire (no tax on earned or prize income)
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

Everywhere else

The other states tax prize income at their ordinary rates, which currently range from roughly 2–3% at the low end to over 10% in the highest-rate states (California, Hawaii, New York, New Jersey, Oregon, Minnesota). A rough planning band:

If a prize crosses state lines

Win a trip to another state, or a car titled elsewhere, and a second state may claim tax on the portion connected to it. You generally get a credit on your home-state return for tax paid to the other state, so you are not taxed twice — but you may have to file in both.

Local tax

A few cities and counties (for example New York City, and some Ohio and Pennsylvania localities) add a local income tax that also applies to prize income.

Tool: estimate the federal and state tax on a specific prize with the sweepstakes tax calculator.

Sources: state revenue-department rate schedules. Rates and brackets are approximate and change every year — confirm with your state before filing. Not tax advice.