9.85% state lottery tax
Minnesota Powerball Tax Calculator (2026)
Last updated:
The Minnesota comparison model uses a 9.85% headline state rate. Large prizes can produce a combined modeled burden above 40%, before any jurisdiction-specific credits, deductions, or local rules.
Note: 9.85% top rate — 4th highest
Can Minnesota residents buy Powerball in-state?
Minnesota is treated here as a regular Powerball ticket-selling state. The calculator uses Minnesota as the ticket-state input for estimating federal tax, state tax, and cash lump-sum take-home.
| Powerball sold in-state | Yes, modeled as a standard ticket-state scenario. |
|---|---|
| Modeled resident rate | 9.85% |
| Resident buys out of state | Usually starts with the ticket jurisdiction’s claim, withholding, and nonresident filing rules, then resident-state tax or credits must be checked. |
| Moving before claiming | Do not assume moving avoids tax. Claim date, residency, ticket location, and state law can all affect the final filing position. |
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.
| Advertised | Cash take-home | Cash effective | Annuity take-home |
|---|---|---|---|
| $100M | $32.0M | 46.71% | $55.6M |
| $300M | $95.8M | 46.8% | $161.9M |
| $500M | $159.5M | 46.82% | $268.2M |
| $700M | $223.3M | 46.83% | $374.5M |
| $1B | $319.0M | 46.84% | $534.0M |
| $1.5B | $478.4M | 46.84% | $799.7M |
| $2B | $637.9M | 46.84% | $1.1B |
Minnesota vs neighboring states ($1B cash)
| State | Rate | Cash 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 |