It's also worth noting that there are five states that do not participate in the Powerball lottery at all: Alabama, Alaska, Hawaii, Nevada and Utah.Īssuming a top federal tax rate of 37%, here's the after-tax amount you'd take home in each state and Washington, D.C., if you won the $1 billion jackpot, for both the lump sum and annuity option, according to. And eight states don't charge income tax on lottery winnings: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Then you have state income taxes, which range from 2.9% to 10.9% depending on which state you live in. Arizona (4.8) Arkansas (5.9) California (0) Colorado (4) Connecticut (6.99). To use the calculator, select your filing status and state. You can find out tax payments for both annuity and cash lump sum options. However, winners will almost certainly pay another 13% in federal taxes when they file their tax return, as the millions of dollars in winnings will put them in the top tax bracket of 37%. Here’s how much taxes you will owe if you win the current Powerball jackpot. There are two payout options: The full jackpot amount spread out over 30 years as an annual payment, or just over half that amount as an upfront lump sum payment.Īll winners pay an automatic 24% federal withholding tax on their winnings, which is considered income. Powerball's next draw is Wednesday night at 10:59 p.m.
