PBPowerballTax

2.50% state lottery tax

North Dakota Powerball Tax Calculator

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North Dakota applies a 2.50% state lottery tax — among the lowest in the country. A winner in North Dakota keeps a noticeably larger share of the prize than peers in 9.85%+ states like Minnesota, Oregon, or New York.

Note: 2.50% top rate — among the lowest

North Dakota 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$36.4M39.36%$60.6M
$300M$109.0M39.45%$181.6M
$500M$181.6M39.47%$302.6M
$700M$254.2M39.48%$423.6M
$1B$363.1M39.49%$605.1M
$1.5B$544.6M39.49%$907.6M
$2B$726.1M39.49%$1.2B

North Dakota vs neighboring states ($1B cash)

StateRateCash take-home
North Dakota (ND)2.5%$363.1M
South Dakota (SD)0%$378.1M
Montana (MT)5.9%$342.7M
Minnesota (MN)9.85%$319.0M

Frequently asked questions

Does North Dakota tax Powerball winnings?

North Dakota taxes Powerball winnings at 2.50%. Note: 2.50% top rate — among the lowest.

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

On a $1 billion advertised jackpot taken as cash (gross $600,000,000), a North Dakota winner keeps approximately $363,083,278 after taxes — an effective rate of about 39.49%.

Can I avoid North Dakota 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 North Dakota is taxed at North Dakota's 2.50% rate; the winner's home state may credit or assess additional tax at filing.

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