---
title: How Much You'll Pay in Taxes When You Win the $700 Million Powerball Jackpot, in Every State
description: The Powerball lottery has hit $700 million. Here's how much each state takes out in taxes.
authors:
  - name: Alicia Adamczyk
    url: https://money.com/author/alicia-adamczyk/
    at_money_since: 2015
    articles: 201
    covers:
      - Taxes
      - Banking
      - Business
      - Career Advice
      - Credit Cards
      - Economy and Politics
      - Education
      - Housing
      - Identity Theft
      - Insurance
      - Investing
      - Lifestyle
      - Loans
      - Personal Finance
      - Retirement
      - Shopping
      - Technology
    social:
      - https://x.com/aliciaadamczyk
    former_staff: true
published: '2017-08-21T19:00:26.000Z'
modified: '2024-04-17T06:37:19.000Z'
section: Taxes
tags:
  - Lottery
  - Powerball
  - lookingforward
word_count: 1400
canonical: https://money.com/powerball-taxes-state/
type: Article
source: structured-blocks
---

> **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/).

![7-Eleven franchise owner Balbir Atwal, right, who will receive $1 million for selling a winning ticket, holds a Powerball poster as media crowds around at Chino Hills store, January 14, 2016.](https://img.money.com/2017/08/170821-powerball-lottery-states-taxes.jpg)
*7-Eleven franchise owner Balbir Atwal, right, who will receive $1 million for selling a winning ticket, holds a Powerball poster as media crowds around at Chino Hills store, January 14, 2016.*

*This post was updated to reflect the Powerball jackpot increasing from $650 million to $700 million.*

The [Powerball drawing Wednesday](https://money.com/powerball-winning-numbers-results/) is worth $700 million, the second-largest windfall in the program's history. Depending on the state where the winning ticket is sold, the chosen one(s) will receive far less than the total advertised.

To start, a single winner will receive the $700 million check only if they choose an annuity, which is paid out over 29 years. Selecting the lump sum option, which most winners do, will gross $443 million. The federal government will then take a 25% cut of the winnings (foreigners are taxed 30%), leaving the winner with a $308.8 million jackpot, or $17.5 million per year, if they pick the annuity, according to [USA Mega](http://usamega.com/powerball-jackpot.asp), a site that tracks the numbers. (Whether to take the [lump sum or the annuity](https://money.com/powerball-lottery-annuity-or-lump-sum/) is a heated debate, but [far more winners](http://www.powerball.com/powerball/pb_stories.asp) have selected the one-time payment.)

Then there's state taxes to take into consideration. Some states, like Texas and California, do not tax lottery winnings, while others tax as much as 8.82% (hi New York). Here's how much of a cut each state would take, per USA Mega. Two things to note: first, Alabama, Alaska, Hawaii, Mississippi, Nevada, and Utah are not listed because they do not sell Powerball tickets, and second, the annuity payments actually increase over time due to inflation. What's listed is an average of the 30 payments (USAMega [breaks down](https://www.usamega.com/powerball-jackpot.asp) each state's annuity payment schedule.) Additionally, if you take the lump sum, you'll be [paying taxes each year](http://money.cnn.com/2016/01/14/news/companies/powerball-payouts-winners-annuity-lump-sum/index.html) on any investment income.

**Arizona:** 5% state tax for residents

-   Annuity: -$1,166,667 per year (avg. net pay per year: **$16,333,333**; after 30 payments: **$489,999,990**)
-   Lump Sum: -$22,165,000 (net payout: **$310,310,000**)

**Arkansas:** 7% state tax

-   Annuity: -$1,633,333 per year (avg. net pay per year: **$15,866,667**; after 30 payments: **$476,000,010**)
-   Lump Sum: -$31,031,000 (net payout: **$301,444,000**)

**California:** No state tax on lottery winnings

-   Annuity: avg. net pay per year: **$17,500,000**; after 30 payments: **$525,000,000**
-   Lump Sum: net payout: **$332,475,000**

**Colorado:** 4% state tax

-   Annuity: -$933,333 per year (avg. net pay per year: **$16,566,667**; after 30 payments: **$497,000,010**)
-   Lump Sum: -$17,732,000 (net payout: **$314,743,000**)

**Connecticut:** 6.99% state tax

-   Annuity: -$1,631,000 per year (avg. net pay per year:**$15,869,000**; after 30 payments:**$476,070,000**)
-   Lump Sum: -$30,986,670 (net payout: **$301,488,330**)

**Delaware:** No state tax on lottery winnings

-   Annuity: avg. net pay per year: **$17,500,000**; after 30 payments: **$525,000,000**
-   Lump Sum: net payout: **$332,475,000**

**District of Columbia:** 8.5% state tax

-   Annuity: -$1,983,333 per year (avg. net pay per year: $15,516,667; after 30 payments: **$465,500,010**)
-   Lump Sum: -$37,680,500 (net payout: **$294,794,500**)

**Florida:** No state tax on lottery winnings.

-   Annuity: avg. net pay per year: **$17,500,000**; after 30 payments: **$525,000,000**
-   Lump Sum: net payout: **$332,475,000**

**Georgia:** 6% state tax

-   Annuity: -$1,400,000 per year (avg. net pay per year:**$16,100,000**; after 30 payments: **$483,000,000**)
-   Lump Sum: -$26,598,000 (net payout: **$305,877,000**)

**Idaho:** 7.4% state tax

-   Annuity: -$1,726,667 per year (avg. net pay per year: **$15,773,333**; after 30 payments: **$473,199,990**)
-   Lump Sum: -$32,804,200 (net payout: **$299,670,800**)

**Illinois:** 4.95% state tax

-   Annuity: -$1,155,000 per year (avg. net pay per year: **$16,345,000**; after 30 payments: **$490,350,000**)
-   Lump Sum: -$21,943,350 (net payout: **$310,531,650**)

**Indiana:** 3.4% state tax

-   Annuity: -$793,333 per year (avg. net pay per year: **$16,706,667**; after 30 payments: **$501,200,010**)
-   Lump Sum: -$15,072,200 (net payout: **$317,402,800**)

**Iowa:** 5% state tax

-   Annuity: -$1,166,667 per year (avg. net pay per year: **$16,333,333**; after 30 payments: **$489,999,990**)
-   Lump Sum: -$22,165,000 (net payout: **$310,310,000**)

**Kansas:** 5% state tax

-   Annuity: -$1,166,667 per year (avg. net pay per year: **$16,333,333**; after 30 payments: **$489,999,990**)
-   Lump Sum: -$22,165,000 (net payout: **$310,310,000**)

**Kentucky:** 6% state tax

-   Annuity: -$1,400,000 per year (avg. net pay per year:**$16,100,000**; after 30 payments: **$483,000,000**)
-   Lump Sum: -$26,598,000 (net payout: **$305,877,000**)

**Louisiana:** 5% state tax

-   Annuity: -$1,166,667 per year (avg. net pay per year: **$16,333,333**; after 30 payments: **$489,999,990**)
-   Lump Sum: -$22,165,000 (net payout: **$310,310,000**)

**Maine:** 5% state tax

-   Annuity: -$1,166,667 per year (avg. net pay per year: **$16,333,333**; after 30 payments: **$489,999,990**)
-   Lump Sum: -$22,165,000 (net payout: **$310,310,000**)

**Maryland:** 8.75% state tax for residents

-   Annuity: -$2,041,667 per year (avg. net pay per year: **$15,458,333**; after 30 payments: **$463,749,990****0**)
-   Lump Sum: -$38,788,750 (net payout:**$293,686,250)**

**Massachusetts:** 5% state tax

-   Annuity: -$1,166,667 per year (avg. net pay per year: **$16,333,333**; after 30 payments: **$489,999,990**)
-   Lump Sum: -$22,165,000 (net payout: **$310,310,000**)

**Michigan:** 4.25% state tax

-   Annuity: -$991,667 per year (avg. net pay per year: **$16,508,333**; after 30 payments: **$495,249,990**)
-   Lump Sum: -$18,840,250 (net payout: **$313,634,750**)

**Minnesota:** 7.25% state tax

-   Annuity: -$1,691,667 per year (avg. net pay per year: **$15,808,333**; after 30 payments: **$474,249,990**)
-   Lump Sum: -$32,139,250 (net payout: **$300,335,750**)

**Missouri:** 4% state tax

-   Annuity: -$933,333 per year (avg. net pay per year: **$16,566,667**; after 30 payments: **$497,000,010**)
-   Lump Sum: -$17,732,000 (net payout: **$314,743,000**)

**Montana:** 6.9% state tax

-   Annuity: -$1,610,000 per year (avg. net pay per year:**$15,869,000**; after 30 payments:**$476,070,000**)
-   Lump Sum: -$30,587,700 (net payout: **$301,887,300**)

**Nebraska:** 5% state tax

-   Annuity: -$1,166,667 per year (avg. net pay per year: **$16,333,333**; after 30 payments: **$489,999,990**)
-   Lump Sum: -$22,165,000 (net payout: **$310,310,000**)

**New Hampshire:** No tax on lottery winnings.

-   Annuity: avg. net pay per year: **$17,500,000**; after 30 payments: **$525,000,000**
-   Lump Sum: net payout: **$332,475,000**

**New Jersey:** 8% state tax

-   Annuity: -$1,866,667 per year (avg. net pay per year: **$15,633,333**; after 30 payments: **$468,999,990****)**
-   Lump Sum: -$35,464,000 (net payout: ****$297,011,000****)

**New Mexico:** 6% state tax

-   Annuity: -$1,400,000 per year (avg. net pay per year:**$16,100,000**; after 30 payments: **$483,000,000**)
-   Lump Sum: -$26,598,000 (net payout: **$305,877,000**)

**New York:** 8.82% state tax

-   Annuity: -$2,058,000 per year (avg. net pay per year:**$15,442,000**; after 30 payments: **$463,260,000**)
-   Lump Sum: -$39,099,060 (net payout: **$293,375,940**)
-   New York City and Yonkers impose an additional tax: 3.876% and 1.323%, respectively

**North Carolina:** 5.499% state tax

-   Annuity: -$1,283,100 per year (avg. net pay per year: $16,216,900; after 30 payments: **$486,507,000**)
-   Lump Sum: -$22,639,383 (net payout: **$308,097,933**)

**North** **Dakota:** 2.9% state tax

-   Annuity: -$676,667 per year (avg. net pay per year: $16,823,333; after 30 payments: **$504,699,990**)
-   Lump Sum: -$11,939,300 (net payout: **$319,619,300**)

**Ohio:** 4% state tax

-   Annuity: -$933,333 per year (avg. net pay per year: $16,566,667; after 30 payments: **$497,000,010**)
-   Lump Sum: -$17,732,000 (net payout: **$314,743,000**)

**Oklahoma:** 4% state tax

-   Annuity: -$933,333 per year (avg. net pay per year: $16,566,667; after 30 payments: **$497,000,010**)
-   Lump Sum: -$17,732,000 (net payout: **$314,743,000**)

**Oregon:** 8% state tax

-   Annuity: -$1,866,667 per year (avg. net pay per year: **$15,633,333**; after 30 payments: **$468,999,990****)**
-   Lump Sum: -$35,464,000 (net payout: ****$297,011,000****)

**Pennsylvania:** 3.07% state tax

-   Annuity: -$716,333 per year (avg. net pay per year: $16,783,667; after 30 payments: **$503,510,010**)
-   Lump Sum: -$13,609,310 (net payout: **$318,865,690**)

**Puerto Rico:** No state or federal taxes on income.

-   Annuity: avg. net pay per year: $23,333,333; after 30 payments: **$700,000**
-   Lump Sum: net payout: **$443,300,000**

**Rhode Island:** 5.99% state tax

-   Annuity: -$1,397,667 per year (avg. net pay per year: $16,102,333; after 30 payments: **$483,069,990**)
-   Lump Sum: -$26,553,670 (net payout: **$305,921,330**)

**South Carolina:** 7%

-   Annuity: -$1,633,333 per year (avg. net pay per year: **$15,866,667**; after 30 payments: **$476,000,010**)
-   Lump Sum: -$31,031,000 (net payout: **$301,444,000**)

[//compass.pressekompass.net/static/opinary.js](//compass.pressekompass.net/static/opinary.js)

**South Dakota:** No state income tax.

-   Annuity: avg. net pay per year: **$17,500,000**; after 30 payments: **$525,000,000**
-   Lump Sum: net payout: **$332,475,000**

**Tennessee:** Only income tax on income from stocks and bonds.

-   Annuity: avg. net pay per year: **$17,500,000**; after 30 payments: **$525,000,000**
-   Lump Sum: net payout: **$332,475,000**

**Texas:** No state income tax.

-   Annuity: avg. net pay per year: **$17,500,000**; after 30 payments: **$525,000,000**
-   Lump Sum: net payout: **$332,475,000**

**US Virgin Islands:** No state tax on lottery winnings.

-   Annuity: avg. net pay per year: **$17,500,000**; after 30 payments: **$525,000,000**
-   Lump Sum: net payout: **$332,475,000**

**Vermont:** 6% state tax

-   Annuity: -$1,400,000 per year (avg. net pay per year:**$16,100,000**; after 30 payments: **$483,000,000**)
-   Lump Sum: -$26,598,000 (net payout: **$305,877,000**)

**Virginia:** 4%

-   Annuity: -$933,333 per year (avg. net pay per year: $16,566,667; after 30 payments: **$461,499,990**)
-   Lump Sum: -$17,732,000 (net payout: **$314,743,000**)

**Washington:** No state tax on lottery winnings.

-   Annuity: avg. net pay per year: **$17,500,000**; after 30 payments: **$525,000,000**
-   Lump Sum: net payout: **$332,475,000**

**West Virginia:** 6.5% state tax

-   Annuity: -$1,516,667 per year (avg. net pay per year: $15,983,333; after 30 payments: **$479,499,990**)
-   Lump Sum: -$28,814,500 (net payout: **$303,660,500**)

**Wisconsin:** 7.65% state tax

-   Annuity: -$1,785,000 per year (avg. net pay per year: $15,715,000; after 30 payments: **$471,450,000**)
-   Lump Sum: -$33,912,450 (net payout: **$298,562,550**)

**Wyoming:** No state tax on lottery winnings.

-   Annuity: avg. net pay per year: **$17,500,000**; after 30 payments: **$525,000,000**
-   Lump Sum: net payout: **$332,475,000**

```json
{
  "@context": "https://schema.org",
  "@graph": [
    {
      "@type": "BreadcrumbList",
      "@id": "https://money.com/powerball-taxes-state/#breadcrumb",
      "itemListElement": [
        {
          "@type": "ListItem",
          "position": 1,
          "name": "Home",
          "item": "https://money.com"
        },
        {
          "@type": "ListItem",
          "position": 2,
          "name": "Taxes",
          "item": "https://money.com/taxes/"
        },
        {
          "@type": "ListItem",
          "position": 3,
          "name": "Tax Breaks",
          "item": "https://money.com/tax-breaks/"
        },
        {
          "@type": "ListItem",
          "position": 4,
          "name": "How Much You'll Pay in Taxes When You Win the $700 Million Powerball Jackpot, in Every State"
        }
      ]
    },
    {
      "@type": "WebSite",
      "@id": "https://money.com/#website",
      "url": "https://money.com",
      "name": "Money",
      "publisher": {
        "@id": "https://money.com/#organization"
      }
    },
    {
      "@type": "WebPage",
      "@id": "https://money.com/powerball-taxes-state/#webpage",
      "url": "https://money.com/powerball-taxes-state/",
      "name": "How Much You'll Pay in Taxes When You Win the $700 Million Powerball Jackpot, in Every State",
      "isPartOf": {
        "@id": "https://money.com/#website"
      },
      "datePublished": "2017-08-21T19:00:26.000Z",
      "mainEntity": {
        "@id": "https://money.com/powerball-taxes-state/"
      },
      "inLanguage": "en-US",
      "breadcrumb": {
        "@id": "https://money.com/powerball-taxes-state/#breadcrumb"
      },
      "dateModified": "2024-04-17T06:37:19.000Z"
    },
    {
      "@type": "Article",
      "headline": "How Much You'll Pay in Taxes When You Win the $700 Million Powerball Jackpot, in Every State",
      "articleSection": "Taxes",
      "image": [
        {
          "@type": "ImageObject",
          "url": "https://img.money.com/2017/08/170821-powerball-lottery-states-taxes.jpg",
          "width": 3334,
          "height": 2041,
          "caption": "170821-powerball-lottery-states-taxes"
        }
      ],
      "author": [
        {
          "@type": "Person",
          "name": "Alicia Adamczyk",
          "url": "https://money.com/author/alicia-adamczyk/",
          "@id": "https://money.com/author/alicia-adamczyk/#author",
          "image": "https://img.money.com/2016/01/alicia-headshot-2.jpg?quality=85&w=640&h=640&crop=1",
          "email": "alicia.adamczyk@moneymail.com",
          "sameAs": [
            "https://x.com/aliciaadamczyk"
          ]
        }
      ],
      "publisher": "https://money.com/#organization",
      "datePublished": "2017-08-21T19:00:26.000Z",
      "description": "The Powerball lottery has hit $700 million. Here's how much each state takes out in taxes.",
      "abstract": "The Powerball lottery has hit $700 million. Here's how much each state takes out in taxes.",
      "@id": "https://money.com/powerball-taxes-state/",
      "inLanguage": "en-US",
      "dateModified": "2024-04-17T06:37:19.000Z",
      "wordCount": 1400,
      "keywords": [
        "Lottery",
        "Powerball",
        "lookingforward"
      ],
      "about": [
        {
          "@type": "Thing",
          "name": "Tax",
          "sameAs": [
            "https://en.wikipedia.org/wiki/Tax"
          ]
        },
        {
          "@type": "Thing",
          "name": "Tax break",
          "sameAs": [
            "https://en.wikipedia.org/wiki/Tax_break"
          ]
        }
      ]
    }
  ]
}
```