3.80% state lottery tax
Iowa Powerball Tax Calculator
Last updated:
Iowa applies a 3.80% state lottery tax — among the lowest in the country. A winner in Iowa keeps a noticeably larger share of the prize than peers in 9.85%+ states like Minnesota, Oregon, or New York.
Note: 3.80% flat rate as of 2025
Iowa after-tax take-home by jackpot tier
24% federal withholding + top-bracket adjustment + state tax. Cash lump sum estimated at 60% of advertised jackpot.
| Advertised | Cash take-home | Cash effective | Annuity take-home |
|---|---|---|---|
| $100M | $35.6M | 40.66% | $59.3M |
| $300M | $106.6M | 40.75% | $177.7M |
| $500M | $177.7M | 40.77% | $296.1M |
| $700M | $248.7M | 40.78% | $414.5M |
| $1B | $355.3M | 40.79% | $592.1M |
| $1.5B | $532.9M | 40.79% | $888.1M |
| $2B | $710.5M | 40.79% | $1.2B |
Iowa vs neighboring states ($1B cash)
| State | Rate | Cash take-home |
|---|---|---|
| Iowa (IA) | 3.8% | $355.3M |
| Illinois (IL) | 4.95% | $348.4M |
| Minnesota (MN) | 9.85% | $319.0M |
| Missouri (MO) | 4.8% | $349.3M |