New York Powerball Tax Calculator (2026)

New York Lottery Tax Rules for 2026

New York is one of the most expensive states in the country for large Powerball and lottery prizes. For the 2026 tax year, this page models New York State lottery withholding at 10.9%, the top state personal income tax rate used for jackpot-size winnings. That amount is separate from federal withholding and from any additional federal tax due when the prize pushes the winner into the 37% bracket.

The important New York-specific detail is local tax. A winner who is a New York City resident can also owe NYC resident income tax, with the top NYC rate reaching 3.876%. Yonkers residents face a separate Yonkers resident income tax surcharge; for quick lottery estimates, this is often approximated at about 1.477% of income, though actual Yonkers tax is computed through New York's resident surcharge rules. These local charges are why a New York City or Yonkers jackpot winner can take home less than a winner elsewhere in the state.

New York can also tax out-of-state winners. If a nonresident buys a New York Lottery ticket and wins more than $5,000, the prize is generally treated as New York-source income. That means the winner may have New York withholding, may need to file a New York nonresident return, and may need to check whether their home state gives a credit for taxes paid to New York.