Lottery winnings tax in Delaware
Delaware taxes lottery winnings as ordinary income at graduated rates from 0% to 6.6%.
Updated · 2026 tax rules · How we calculate
You keep
$36,384
Cash at payout
$38,000
Total tax
$13,616
Due when you file
$1,616
- Form W-2G
- Yes
- Federal withholding at payout
- $12,000
- Federal tax on the winnings
- $10,350
- State tax
- $3,266
- Still to pay when you file
- $1,616
- You keep
- $36,384
$50,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
Delaware taxes gambling winnings as ordinary income.
Tax owed ($13,616) minus what was withheld ($12,000). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$50,000 minus $13,616 in federal and state tax: an effective rate of 27.2%.
An estimate for 2026, not tax advice. It treats this win as your only gambling income for the year and leaves out local income taxes. Nothing you enter leaves your browser.
The rules
- Delaware tax
- Delaware taxes lottery winnings as ordinary income at graduated rates from 0% to 6.6%.[1]
- Federal tax form
- Lottery prizes of $2,000 or more that are at least 300 times the ticket price are reported on a W-2G. The threshold was $600 before 2026.[2]
- Federal withholding
- 24% is withheld from lottery prizes of more than $5,000 (minus the ticket price). No 300x test applies to lotteries.[4]
- Delaware withholding
- No Delaware withholding requirement for lottery winnings. Tax is due when you file.[5]Unverified
- Gambling losses
- You can deduct losses as a Delaware itemized deduction on Form PIT-RSA, even if you took the federal standard deduction.[6]
- Visitors
- Delaware does not tax nonresidents on lottery winnings. Visitors owe tax to their home state instead.[7]Unverified
- Where to play
- Delaware runs a state lottery.[8]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Delaware.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $83 | $1,237 |
| $2,000 | Yes | $0 | $240 | $111 | $1,649 |
| $10,000 | Yes | $2,400 | $1,550 | $626 | $7,824 |
| $50,000 | Yes | $12,000 | $10,350 | $3,266 | $36,384 |
| $100,000 | Yes | $24,000 | $22,114 | $6,566 | $71,320 |
Assumes a $2 ticket price, so the 300x test is met at every amount shown.
Questions
- How much is Delaware tax on lottery winnings?
- Delaware taxes lottery winnings as ordinary income at graduated rates from 0% to 6.6%.[1]
- Does Delaware withhold tax from lottery winnings?
- Delaware has no withholding requirement for lottery winnings. Tax is due when you file.[5]Unverified
- Do visitors pay Delaware tax on lottery winnings?
- Delaware does not tax nonresidents on lottery winnings. Visitors owe tax to their home state instead.[7]Unverified
More for Delaware
All of Delaware's gambling tax rules · Lottery in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
- [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [5] Del. Code tit. 30, ch. 11 (Personal Income Tax) · checked September 22, 2026
- [6] Delaware 2025 PIT-RES Instructions · checked September 22, 2026
- [7] Delaware 2025 PIT-NON Instructions (Line 14 Other Income) · checked September 22, 2026
- [8] American Gaming Association, State of the States 2025 · checked September 22, 2026