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Powerball (game)

If you win Powerball, this is how much you’ll have to pay in taxes

Aug. 10, 2026, 5:30 p.m. ET

As the Beatles once sang, “There’s one for you, nineteen for me, Cause I’m the Taxman.” These classic lyrics especially ring true for potential Powerball winners.

If there is a lucky winner for Monday’s Powerball jackpot, they won’t take home the entire estimated $905 million prize, even if they have the only ticket with the right six numbers.

The grand prize is taxed if a person takes the annuity option, which is the advertised jackpot amount paid out in annual installments, or the lump sum.

If a winner joins the ranks of the luckiest people alive, like the two players in Texas and Florida who split a $20 million prize back in May, there will be a hefty tax bill to pay.

Here’s what to know about taxes on lottery winnings.

Federal taxes on Powerball wins

Federal taxes on lottery jackpots are determined by which income bracket the winnings fall into.

Currently, the top tax rate remains at 37% for individual single taxpayers with incomes of $640,600 or higher, or $768,700 for married couples filing jointly. The governing lottery body automatically withholds 24% of the prize, leaving the balance to be paid by the winner.

State taxes on Powerball wins

Most states tax lottery winnings. The states that impose the highest tax on wins are New York (10.9%), Maryland (8.9%) and the District of Columbia (8.5%)

Over $900 million is up for grabs ahead of the next Powerball drawing.

According to Lottery USA’s tax calculator, a Powerball winner in New York would have to pay $136,773,100 in total taxes (federal and state combined) if they chose the cash option for the current jackpot. By choosing the annuity option, they’d be taxed $315,845,000.

Only eight states do not impose state income tax on lottery wins, including:

  • California
  • Florida
  • New Hampshire
  • South Dakota
  • Texas
  • Tennessee
  • Washington
  • Wyoming

Where to buy lottery tickets

Tickets can be purchased in person at gas stations, convenience stores and grocery stores. Some airport terminals may also sell lottery tickets.

Contributing: James Powel, USA TODAY

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Original source: https://www.usatoday.com/money/

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