A Powerball jackpot bought in Delaware is taxed at 6.6% at the state level, above average. On today's $674,000,000 jackpot that is about $18,736,661 to Delaware, leaving $160,163,283 from the $283,888,800 cash option.
Delaware has no sales tax and leans on its income tax instead, which tops out at 6.6%. Lottery prizes are taxable, and Delaware is one of the states that does not withhold state tax when it pays a prize — the bill arrives at filing.
Calculate your take-home
Delaware Powerball payout after tax
| Line | Lump sum | Annuity (30 payments) |
|---|---|---|
| Advertised jackpot | $674,000,000 | $674,000,000 |
| Amount paid out before tax | $283,888,800 | $674,000,000 |
| Federal tax (37% bracket) | −$104,988,856 | −$247,880,007 |
| Delaware tax (6.6%) | −$18,736,661 | −$44,484,000 |
| You keep | $160,163,283 | $381,635,992 |
| Share of the advertised jackpot | 23.8% | 56.6% |
Built from today's live cash value ($283,900,000). Single filer, standard deduction, no other income.
How Delaware taxes lottery winnings
Delaware uses a graduated income tax, and lottery prizes are ordinary income — not capital gains, not a special category. Because a jackpot is far above the highest bracket threshold, the effective state rate on the prize is the top rate, 6.6%.
- Delaware withholds nothing at payout, so a winner who spends the full check can be short at tax time.
- There is no local income tax in Delaware.
Three prizes, worked out for Delaware
| Prize | Cash value | Federal | Delaware | You keep |
|---|---|---|---|---|
| $1M | $421,200 | −$110,554 | −$27,799 | $282,847 |
| $10M | $4,212,000 | −$1,508,440 | −$277,992 | $2,425,568 |
| Current jackpot ($674M) | $283,888,800 | −$104,988,856 | −$18,736,661 | $160,163,283 |
Smaller prizes are worth checking against your own bracket: below roughly $640,600 of taxable income the federal rate is 35% or less, so the flat 37% used here overstates the bill on smaller wins.
If you live in Delaware but buy elsewhere
Lottery income is generally taxed by the state where the ticket was purchased, and again by your state of residence, with a credit for tax paid to the first state. That credit is usually capped at the home state's own rate, so a higher-tax home state still collects the difference.
That matters in Delaware because Pennsylvania is next door with no tax on a home-state ticket. Crossing the border to buy does not make the prize tax-free for a Delaware resident — it just adds a second state to the paperwork.
Residency is decided by facts — where you spend the year, where you vote, where your home is — not by the address you write on the claim form. Moving after the win does not retroactively change the state that taxes the prize.
Compare Delaware with its neighbours
| State | Rate on a jackpot | Take-home (lump sum) | Difference |
|---|---|---|---|
| Delaware | 6.6% | $160,163,283 | — |
| Maryland | 9.7% | $151,362,730 | −$8,800,553 |
| New Jersey | 10.75% | $148,381,898 | −$11,781,385 |
| Pennsylvania | 0% | $178,899,944 | +$18,736,661 |
All 46 jurisdictions are listed in the state tax index and the full rate table.
Frequently asked
Does Delaware tax Powerball winnings?
Yes. Delaware treats a Powerball jackpot as ordinary income and taxes it at 6.6% at the top marginal rate. On the current $674M jackpot that is about $18,736,661 on a lump-sum claim.
How much would I keep from the current jackpot in Delaware?
About $160,163,283 on the cash option ($283,888,800), or about $381,635,992 if you take the 30-payment annuity and stay in Delaware for all of it. Both figures are before any local tax, professional fees or other income.
Do I pay Delaware tax if I buy the ticket in another state?
Usually yes. Delaware taxes residents on worldwide income, so a prize won in a no-tax state such as Pennsylvania is still Delaware income. You would generally claim a credit for tax withheld by the state where you bought the ticket, but the credit rarely covers the full 6.6%.
Can I claim anonymously in Delaware?
Anonymity rules are set by the state lottery, not the tax code, and they change. Some states let a trust or LLC claim in place of the individual; others publish the winner's name regardless. Check the Delaware lottery claim rules before you sign the back of the ticket.