A Powerball jackpot bought in Indiana is taxed at 2.95% at the state level, one of the smallest shares in the country. On today's $674,000,000 jackpot that is about $8,374,720 to Indiana, leaving $170,525,224 from the $283,888,800 cash option.
Indiana pairs a low 2.95% state rate with county income taxes, so the real bill depends on where the winner lives. For a jackpot the county add-on is small in percentage terms but still runs into seven figures.
Calculate your take-home
Indiana 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 |
| Indiana tax (2.95%) | −$8,374,720 | −$19,883,000 |
| You keep | $170,525,224 | $406,236,992 |
| Share of the advertised jackpot | 25.3% | 60.3% |
Built from today's live cash value ($283,900,000). Single filer, standard deduction, no other income.
How Indiana taxes lottery winnings
Indiana 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, 2.95%.
- Indiana’s county income tax applies to lottery prizes, unlike Ohio where municipal taxes do not reach them.
- The Hoosier Lottery withholds state tax at 3.23% on larger prizes, slightly above the 2.95% state rate, to cover part of the county tax.
- Indiana counties add a local income tax of roughly 0.5%–3% on top of the 2.95% state rate.
Three prizes, worked out for Indiana
| Prize | Cash value | Federal | Indiana | You keep |
|---|---|---|---|---|
| $1M | $421,200 | −$110,554 | −$12,425 | $298,220 |
| $10M | $4,212,000 | −$1,508,440 | −$124,254 | $2,579,306 |
| Current jackpot ($674M) | $283,888,800 | −$104,988,856 | −$8,374,720 | $170,525,224 |
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 Indiana 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.
Indiana is surrounded by states with similar rates (Ohio 2.75%, Illinois 4.95%, Kentucky 3.5%), 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 Indiana with its neighbours
| State | Rate on a jackpot | Take-home (lump sum) | Difference |
|---|---|---|---|
| Indiana | 2.95% | $170,525,224 | — |
| Ohio | 2.75% | $171,093,002 | +$567,778 |
| Illinois | 4.95% | $164,847,448 | −$5,677,776 |
| Kentucky | 3.5% | $168,963,836 | −$1,561,388 |
All 46 jurisdictions are listed in the state tax index and the full rate table.
Frequently asked
Does Indiana tax Powerball winnings?
Yes. Indiana treats a Powerball jackpot as ordinary income and taxes it at 2.95% at the top marginal rate. On the current $674M jackpot that is about $8,374,720 on a lump-sum claim. Indiana counties add a local income tax of roughly 0.5%–3% on top of the 2.95% state rate.
How much would I keep from the current jackpot in Indiana?
About $170,525,224 on the cash option ($283,888,800), or about $406,236,992 if you take the 30-payment annuity and stay in Indiana for all of it. Both figures are before any local tax, professional fees or other income.
Do I pay Indiana tax if I buy the ticket in another state?
It depends on residency. Indiana 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 Indiana 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 Indiana?
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 Indiana lottery claim rules before you sign the back of the ticket.