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Have any states changed lottery tax rates from 2024 to 2025?
Executive summary
There is widespread reporting on state lottery tax rates for 2025 — many outlets list which states do not tax or withhold lottery winnings and provide updated withholding and top federal rates — but the supplied sources do not clearly document which specific states changed their lottery tax rates from 2024 to 2025. Available sources list 2025 withholding and state practices (for example, which states don’t tax winnings) and note federal withholding/bracket changes, but they do not offer a clear before‑and‑after table showing state-by-state rate changes between 2024 and 2025 [1] [2] [3].
1. What the reporting actually says about 2025 state lottery taxation
Several of the provided guides and tax summaries present 2025 snapshots: worldpopulationreview and similar aggregators list states that do not withhold or tax lottery winnings (California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming among those noted) and rank states by withholding percentages [1]. The Tax Foundation analysis and allied writeups emphasize that withholding varies widely—some jurisdictions have zero withholding while New York City (local) can push over 12%—and they summarize how federal and state withholding interact for big jackpots [2] [4].
2. Federal changes that affect lottery winners, and why they complicate comparisons
Multiple sources emphasize federal withholding/bracket updates that took effect around the 2024–2025 period: lotteries commonly withhold 24% up front for larger prizes but ultimate federal liability can reach the top marginal bracket (37% in 2025), and inflation adjustments to federal brackets slightly changed effective federal tax on a jackpot between 2024 and 2025 [3] [5] [6]. Because winners’ final tax bills combine federal progressivity with state rules, federal bracket adjustments can make it appear that tax burdens changed even if a state's nominal rate stayed the same [3] [5].
3. Which states reportedly do not tax or withhold lottery winnings in 2025
Multiple 2025 guides repeat a consistent set of states that do not impose state withholding or tax lottery winnings: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming are named in at least one aggregator as not having withholding on lottery winnings [1]. Other 2025 summaries also highlight California’s exemption for state lottery winnings and list states that do not impose state gambling‑winnings taxes [7] [1].
4. Nonresident withholding rules and noteworthy state exceptions
Some coverage flags special rules for nonresident ticket purchasers: Arizona and Maryland are repeatedly called out in 2025 summaries as states that will withhold for nonresident winners, which is an exception to the general tendency for states not to withhold for out‑of‑state residents [1] [4]. This nuance matters: a winner’s tax outcome can change depending on where the ticket was bought versus the winner’s state of residence.
5. What the sources do not say — the core gap for your question
The supplied search results provide solid 2025 snapshots and explain withholding practices and federal updates, but they do not contain a clear, sourced list of state-by-state rate changes from 2024 to 2025. In other words, none of the provided items explicitly say “State X raised/lowered its lottery tax rate between 2024 and 2025,” so a definitive answer about which states changed their rates is not present in the current reporting (not found in current reporting) [1] [2] [3].
6. How to get a verifiable before‑and‑after answer
To resolve whether any states changed lottery tax rates between 2024 and 2025 you need a direct comparison: official state tax authority rate tables or contemporaneous archived pages (state revenue department press releases or enacted legislation) for both years, or a focused Tax Foundation/IRS/state summary that explicitly documents year‑to‑year adjustments. The current sources provide 2025 status and federal context but not the legislative or administrative histories required to prove a change [2] [5].
7. Practical takeaway for someone checking tax exposure on a lottery win
Use the 2025 state lists as starting points — they tell you which states currently withhold and which do not, and they note federal withholding and top rates — but verify the candidate state’s official revenue department or recent legislation if you need to know whether that rate changed between 2024 and 2025. The aggregators (worldpopulationreview, Tax Foundation summaries, and lottery tax calculators) are useful for initial estimates but do not substitute for state statutory records when confirming year‑to‑year changes [1] [2] [3].
If you want, I can (A) compile a checklist of the exact state revenue or legislative pages to consult for each state, or (B) attempt to extract explicit 2024 vs 2025 rate language from additional sources you provide.