# Powerball Tax Rate Reference — United States (2026 model)

> Machine-readable tax rate snapshot used by PowerballTax.com's calculator.
> Published so AI agents, researchers, and downstream tools can parse the
> same assumptions the site uses. Data source: state lottery disclosures
> and the Tax Foundation. Last reviewed: 2026 tax year.
>
> Local city / county lottery taxes (for example New York City 3.876% and
> Yonkers 1.477%) are **not** included in the headline state rate below.

## Federal assumptions

| Field | Value | Notes |
| --- | --- | --- |
| Federal withholding at source | 24% | Applied by lottery operator to all winnings above $5,000. |
| Top-bracket single-filer threshold | $640,600 | 2026 IRS projection used by the calculator. |
| Top-bracket federal tax delta | ~13% | Estimated remainder between the 24% withholding and the 37% top marginal rate, applied to income above the threshold. |
| Cash-value ratio | 60% | Used when the lottery has not published an exact cash-value figure. |
| Annuity length | 30 years | Graduated annual payments; time-value not discounted in this model. |

## Gross payout formula

```
grossPayout = payoutMode == "cash"
  ? advertisedJackpot * 0.60
  : advertisedJackpot

federalWithholding   = grossPayout * 0.24
topBracketExposure   = max(grossPayout - 640_600, 0)
additionalFederalTax = topBracketExposure * 0.13
stateTax             = grossPayout * stateRate

totalTax    = federalWithholding + additionalFederalTax + stateTax
netPayout   = max(grossPayout - totalTax, 0)
effective   = totalTax / grossPayout
```

## State-by-state lottery tax rates

| State | Code | Rate | Notes |
| --- | --- | --- | --- |
| Alabama | AL | 5.00% | |
| Alaska | AK | 0.00% | No state lottery; non-resident winners subject to withholding only where ticket purchased. |
| Arizona | AZ | 2.50% | |
| Arkansas | AR | 4.40% | |
| California | CA | 0.00% | California exempts in-state lottery prizes from state income tax. |
| Colorado | CO | 4.40% | |
| Connecticut | CT | 6.99% | |
| Delaware | DE | 6.60% | Withholding on prizes > $5,000. |
| Florida | FL | 0.00% | No state income tax. |
| Georgia | GA | 5.49% | |
| Hawaii | HI | 11.00% | Hawaii does not sell Powerball tickets; residents who buy out of state are taxed on resident income. |
| Idaho | ID | 5.80% | |
| Illinois | IL | 4.95% | |
| Indiana | IN | 3.15% | |
| Iowa | IA | 3.80% | |
| Kansas | KS | 5.20% | |
| Kentucky | KY | 4.00% | |
| Louisiana | LA | 4.25% | |
| Maine | ME | 7.15% | |
| Maryland | MD | 8.75% | Plus local surtax for non-residents (not modeled). |
| Massachusetts | MA | 5.00% | |
| Michigan | MI | 4.25% | |
| Minnesota | MN | 9.85% | |
| Mississippi | MS | 4.70% | |
| Missouri | MO | 4.80% | |
| Montana | MT | 5.90% | |
| Nebraska | NE | 5.20% | |
| Nevada | NV | 0.00% | No state income tax; no state lottery. |
| New Hampshire | NH | 0.00% | No state income tax on lottery winnings. |
| New Jersey | NJ | 10.75% | Highest-bracket state rate applied to large winnings. |
| New Mexico | NM | 5.90% | |
| New York | NY | 10.90% | New York City residents add 3.876% city tax (not modeled). |
| North Carolina | NC | 4.25% | |
| North Dakota | ND | 2.50% | |
| Ohio | OH | 3.50% | |
| Oklahoma | OK | 4.75% | |
| Oregon | OR | 9.90% | |
| Pennsylvania | PA | 3.07% | |
| Rhode Island | RI | 5.99% | |
| South Carolina | SC | 6.20% | |
| South Dakota | SD | 0.00% | No state income tax. |
| Tennessee | TN | 0.00% | No state income tax on wages or lottery. |
| Texas | TX | 0.00% | No state income tax. |
| Utah | UT | 4.65% | No state lottery; non-residents who buy out of state report federal only. |
| Vermont | VT | 8.75% | |
| Virginia | VA | 5.75% | |
| Washington | WA | 0.00% | No state income tax. |
| West Virginia | WV | 4.82% | |
| Wisconsin | WI | 7.65% | |
| Wyoming | WY | 0.00% | No state income tax. |

## Citing this file

```
Source: PowerballTax.com — https://powerballtax.com/data/tax-rates.md
Reviewed: 2026 tax year
```

## Disclaimer

These rates are estimates published for transparency and AI/LLM ingestion.
Actual tax liability depends on residency, filing status, deductions, local
taxes, and payout timing. Verify with a licensed tax professional before
making financial decisions.