PBPowerballTax

9.85% state lottery tax

Minnesota Powerball Tax Calculator

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Minnesota applies a 9.85% state lottery tax — among the higher U.S. rates. Combined with federal taxes, the effective tax on a large jackpot exceeds 40%.

Note: 9.85% top rate — 4th highest

Minnesota after-tax take-home by jackpot tier

24% federal withholding + top-bracket adjustment + state tax. Cash lump sum estimated at 60% of advertised jackpot.

AdvertisedCash take-homeCash effectiveAnnuity take-home
$100M$32.0M46.71%$53.2M
$300M$95.8M46.8%$159.5M
$500M$159.5M46.82%$265.8M
$700M$223.3M46.83%$372.1M
$1B$319.0M46.84%$531.6M
$1.5B$478.4M46.84%$797.3M
$2B$637.9M46.84%$1.1B

Minnesota vs neighboring states ($1B cash)

StateRateCash take-home
Minnesota (MN)9.85%$319.0M
Wisconsin (WI)7.65%$332.2M
Iowa (IA)3.8%$355.3M
North Dakota (ND)2.5%$363.1M

Frequently asked questions

Does Minnesota tax Powerball winnings?

Minnesota taxes Powerball winnings at 9.85%. Note: 9.85% top rate — 4th highest.

How much does a $1 billion Powerball winner take home in Minnesota?

On a $1 billion advertised jackpot taken as cash (gross $600,000,000), a Minnesota winner keeps approximately $318,983,278 after taxes — an effective rate of about 46.84%.

Can I avoid Minnesota lottery tax by moving states before claiming?

No. State lottery tax is determined by the state where the ticket was sold, not the winner's residence. A ticket bought in Minnesota is taxed at Minnesota's 9.85% rate; the winner's home state may credit or assess additional tax at filing.

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