A Powerball jackpot bought in Illinois is taxed at 4.95% at the state level, close to the middle of the pack. On today's $674,000,000 jackpot that is about $14,052,496 to Illinois, leaving $164,847,448 from the $283,888,800 cash option.
Illinois charges a flat 4.95% income tax with no local income tax. It is one of the few states that taxes lottery prizes at the same flat rate as wages, which keeps the math simple.
Calculate your take-home
Illinois 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 |
| Illinois tax (4.95%) | −$14,052,496 | −$33,363,000 |
| You keep | $164,847,448 | $392,756,992 |
| Share of the advertised jackpot | 24.5% | 58.3% |
Built from today's live cash value ($283,900,000). Single filer, standard deduction, no other income.
How Illinois taxes lottery winnings
Illinois uses a flat 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, 4.95%.
- Illinois withholds state tax on prizes over $1,000 — a lower threshold than most states.
- Illinois does not tax retirement income, but lottery prizes are not retirement income and are fully taxable.
Three prizes, worked out for Illinois
| Prize | Cash value | Federal | Illinois | You keep |
|---|---|---|---|---|
| $1M | $421,200 | −$110,554 | −$20,849 | $289,796 |
| $10M | $4,212,000 | −$1,508,440 | −$208,494 | $2,495,066 |
| Current jackpot ($674M) | $283,888,800 | −$104,988,856 | −$14,052,496 | $164,847,448 |
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 Illinois 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.
Illinois is surrounded by states with similar rates (Indiana 2.95%, Iowa 3.8%, Wisconsin 7.65%), so where you buy changes the withholding and the filing, but rarely the total by much.
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 Illinois with its neighbours
| State | Rate on a jackpot | Take-home (lump sum) | Difference |
|---|---|---|---|
| Illinois | 4.95% | $164,847,448 | — |
| Indiana | 2.95% | $170,525,224 | +$5,677,776 |
| Iowa | 3.8% | $168,112,169 | +$3,264,721 |
| Wisconsin | 7.65% | $157,182,451 | −$7,664,998 |
All 46 jurisdictions are listed in the state tax index and the full rate table.
Frequently asked
Does Illinois tax Powerball winnings?
Yes. Illinois treats a Powerball jackpot as ordinary income and taxes it at 4.95% at the top marginal rate. On the current $674M jackpot that is about $14,052,496 on a lump-sum claim.
How much would I keep from the current jackpot in Illinois?
About $164,847,448 on the cash option ($283,888,800), or about $392,756,992 if you take the 30-payment annuity and stay in Illinois for all of it. Both figures are before any local tax, professional fees or other income.
Do I pay Illinois tax if I buy the ticket in another state?
It depends on residency. Illinois taxes its residents on income wherever it arises, and the state where you bought the ticket may withhold too. You would normally claim a credit in Illinois for tax paid to the other state. The state of purchase is not automatically the only one that taxes you.
Can I claim anonymously in Illinois?
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 Illinois lottery claim rules before you sign the back of the ticket.