How Much You’ll Pay in Taxes When You Win the $650 Million Powerball Jackpot

The Powerball drawing Wednesday is worth $650 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 $650 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 $411.7 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 $16.25 million per year, if they pick the annuity, according to USA Mega, a site that tracks the numbers. (Whether to take the lump sum or the annuity is a heated debate, but far more winners 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 each state’s annuity payment schedule.) Additionally, if you take the lump sum, you’ll be paying taxes each year on any investment income.

Arizona: 5% state tax for residents

  • Annuity: -$1,083,333 per year (avg. net pay per year: $15,166,667; after 30 payments: $455,000,010)
  • Lump Sum: -$20,585,000 (net payout: $288,190,000)

Arkansas: 7% state tax

  • Annuity: -$1,516,667 per year (avg. net pay per year: $14,733,333; after 30 payments: $441,999,990)
  • Lump Sum: -$28,819,000 (net payout: $279,956,000)

California: No state tax on lottery winnings

  • Annuity: avg. net pay per year: $16,250,000; after 30 payments: $487,500,000
  • Lump Sum: net payout: $308,775,000

Colorado: 4% state tax

  • Annuity: -$866,667 per year (avg. net pay per year: $15,383,333; after 30 payments: $461,499,990)
  • Lump Sum: -$16,468,000 (net payout: $292,307,000)

Connecticut: 6.99% state tax

  • Annuity: -$1,514,500 per year (avg. net pay per year: $14,735,500; after 30 payments: $442,065,000)
  • Lump Sum: -$28,777,830 (net payout: $279,997,170)

Delaware: No state tax on lottery winnings

  • Annuity: avg. net pay per year: $16,250,000; after 30 payments: $487,500,000
  • Lump Sum: net payout: $308,775,000

District of Columbia: 8.5% state tax

  • Annuity: -$1,841,667 per year (avg. net pay per year: $14,408333; after 30 payments: $432,249,990)
  • Lump Sum: -$34,994,500 (net payout: $273,780,500)

Florida: No state tax on lottery winnings.

  • Annuity: avg. net pay per year: $16,250,000; after 30 payments: $487,500,000
  • Lump Sum: net payout: $308,775,000

Georgia: 6% state tax

  • Annuity: -$1,300,000 per year (avg. net pay per year: $14,950,000; after 30 payments: $448,500,000)
  • Lump Sum: -$24,702,000 (net payout: $284,073,000)

Idaho: 7.4% state tax

  • Annuity: -$1,603,333 per year (avg. net pay per year: $14,646,667; after 30 payments: $439,400,010)
  • Lump Sum: -$30,465,800 (net payout: $278,309,200)

Illinois: 4.95% state tax

  • Annuity: -$1,072,500 per year (avg. net pay per year: $15,177,500; after 30 payments: $455,325,000)
  • Lump Sum: -$20,379,150 (net payout: $288,395,850)

Indiana: 3.4% state tax

  • Annuity: -$736,667 per year (avg. net pay per year: $15,513,333; after 30 payments: $465,399,990)
  • Lump Sum: -$13,997,800 (net payout: $294,777,200)

Iowa: 5% state tax

  • Annuity: -$1,083,333 per year (avg. net pay per year: $15,166,667; after 30 payments: $455,000,010)
  • Lump Sum: -$20,585,000 (net payout: $288,190,000)

Kansas: 5% state tax

  • Annuity: -$1,083,333 per year (avg. net pay per year: $15,166,667; after 30 payments: $455,000,010)
  • Lump Sum: -$20,585,000 (net payout: $288,190,000)

Kentucky: 6% state tax

  • Annuity: -$1,300,000 per year (avg. net pay per year: $14,950,000; after 30 payments: $448,500,000)
  • Lump Sum: -$24,702,000 (net payout: $284,073,000)

Louisiana: 5% state tax

  • Annuity: -$1,083,333 per year (avg. net pay per year: $15,166,667; after 30 payments: $455,000,010)
  • Lump Sum: -$20,585,000 (net payout: $288,190,000)

Maine: 5% state tax

  • Annuity: -$1,083,333 per year (avg. net pay per year: $15,166,667; after 30 payments: $455,000,010)
  • Lump Sum: -$20,585,000 (net payout: $288,190,000)

Maryland: 8.75% state tax for residents

  • Annuity: -$1,895,833 per year (avg. net pay per year: $14,354,167; after 30 payments: $430,625,010)
  • Lump Sum: -$36,023,750 (net payout: $272,751,250)

Massachusetts: 5% state tax

  • Annuity: -$1,083,333 per year (avg. net pay per year: $15,166,667; after 30 payments: $455,000,010)
  • Lump Sum: -$20,585,000 (net payout: $288,190,000)

Michigan: 4.25% state tax

  • Annuity: -$920,833 per year (avg. net pay per year: $15,329,167; after 30 payments: $459,875,010)
  • Lump Sum: -$17,497,250 (net payout: $291,277,750)

Minnesota: 7.25% state tax

  • Annuity: -$1,570,833 per year (avg. net pay per year: $14,679,167; after 30 payments: $440,375,010)
  • Lump Sum: -$29,848,250 (net payout: $278,926,750)

Missouri: 4% state tax

  • Annuity: -$866,667 per year (avg. net pay per year: $15,383,333; after 30 payments: $461,499,990)
  • Lump Sum: -$16,468,000 (net payout: $292,307,000)

Montana: 6.9% state tax

  • Annuity: -$1,495,000 per year (avg. net pay per year: $14,755,000; after 30 payments: $442,650,000)
  • Lump Sum: -$28,407,300 (net payout: $280,367,700)

Nebraska: 5% state tax

  • Annuity: -$1,083,333 per year (avg. net pay per year: $15,166,667; after 30 payments: ($455,000,010)
  • Lump Sum: -$20,585,000 (net payout: $288,190,000)

New Hampshire: No tax on lottery winnings.

  • Annuity: avg. net pay per year: $16,250,000; after 30 payments: $487,500,000
  • Lump Sum: net payout: $308,775,000

New Jersey: 8% state tax

  • Annuity: -$1,733,333 per year (avg. net pay per year: $14,516,667; after 30 payments: $435,500,010)
  • Lump Sum: -$32,936,000 (net payout: $275,839,000)

New Mexico: 6% state tax

  • Annuity: -$1,300,000 per year (avg. net pay per year: $14,950,000; after 30 payments: $448,500,000)
  • Lump Sum: -$24,702,000 (net payout: $284,073,000)

New York: 8.82% state tax

  • Annuity: -$1,911,000 per year (avg. net pay per year: $14,339,000; after 30 payments: $430,170,000)
  • Lump Sum: -$36,311,940 (net payout: $272,463,060)
  • New York City and Yonkers impose an additional tax: 3.876% and 1.323%, respectively

North Carolina: 5.499% state tax

  • Annuity: -$1,191,450 per year (avg. net pay per year: $15,058,550; after 30 payments: $451,756,500)
  • Lump Sum: -$22,639,383 (net payout: $286,135,617)

NorthDakota: 2.9% state tax

  • Annuity: -$628,333 per year (avg. net pay per year: $15,621,667; after 30 payments: $468,650,010)
  • Lump Sum: -$11,939,300 (net payout: $296,835,700)

Ohio: 4% state tax

  • Annuity: -$866,667 per year (avg. net pay per year: $15,383,333; after 30 payments: $461,499,990)
  • Lump Sum: -$16,468,000 (net payout: $292,307,000)

Oklahoma: 4% state tax

  • Annuity: -$866,667 per year (avg. net pay per year: $15,383,333; after 30 payments: $461,499,990)
  • Lump Sum: -$16,468,000 (net payout: $292,307,000)

Oregon: 8% state tax

  • Annuity: -$1,733,333 per year (avg. net pay per year: $14,516,667; after 30 payments: $435,500,010)
  • Lump Sum: -$32,936,000 (net payout: $275,839,000)

Pennsylvania: 3.07% state tax

  • Annuity: -$665,167 per year (avg. net pay per year: $15,584,833; after 30 payments: $467,544,990)
  • Lump Sum: -$12,639,190 (net payout: $296,135,810)

Puerto Rico: No state or federal taxes on income.

  • Annuity: avg. net pay per year: $21,666,667; after 30 payments: $650,000,000
  • Lump Sum: net payout: $411,700,000

Rhode Island: 5.99% state tax

  • Annuity: -$1,297,833 per year (avg. net pay per year: $14,952,167; after 30 payments: $448,565,010)
  • Lump Sum: -$24,660,830 (net payout: $284,114,170)

South Carolina: 7%

  • Annuity: -$1,516,667 per year (avg. net pay per year: $14,733,333; after 30 payments: $441,999,990)
  • Lump Sum: -$28,819,000 (net payout: $279,956,000)

South Dakota: No state income tax.

  • Annuity: avg. net pay per year: $16,250,000; after 30 payments: $487,500,000
  • Lump Sum: net payout: $308,775,000

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

  • Annuity: avg. net pay per year: $16,250,000; after 30 payments: $487,500,000
  • Lump Sum: net payout: $308,775,000

Texas: No state income tax.

  • Annuity: avg. net pay per year: $16,250,000; after 30 payments: $487,500,000
  • Lump Sum: net payout: $308,775,000

US Virgin Islands: No state tax on lottery winnings.

  • Annuity: avg. net pay per year: $16,250,000; after 30 payments: $487,500,000
  • Lump Sum: net payout: $308,775,000

Vermont: 6% state tax

  • Annuity: -$1,300,000 per year (avg. net pay per year: $14,950,000; after 30 payments: $448,500,000)
  • Lump Sum: -$24,702,000 (net payout: $284,073,000)

Virginia: 4%

  • Annuity: -$866,667 per year (avg. net pay per year: $15,383,333; after 30 payments: $461,499,990)
  • Lump Sum: -$16,468,000 (net payout: $292,307,000)

Washington: No state tax on lottery winnings.

  • Annuity: avg. net pay per year: $16,250,000; after 30 payments: $487,500,000
  • Lump Sum: net payout: $308,775,000

West Virginia: 6.5% state tax

  • Annuity: -$1,408,333 per year (avg. net pay per year: $14,841,667; after 30 payments: $445,250,010)
  • Lump Sum: -$26,760,500 (net payout: $282,014,500)

Wisconsin: 7.65% state tax

  • Annuity: -$1,657,500 per year (avg. net pay per year: $14,592,500; after 30 payments: $437,775,000)
  • Lump Sum: -$31,495,050 (net payout: $277,279,950)

Wyoming: No state tax on lottery winnings.

  • Annuity: avg. net pay per year: $16,250,000; after 30 payments: $487,500,000
  • Lump Sum: net payout: $308,775,000

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