A Powerball jackpot bought in Massachusetts is taxed at 9% at the state level, among the highest in the country. On today's $674,000,000 jackpot that is about $25,549,992 to Massachusetts, leaving $153,349,952 from the $283,888,800 cash option.
Massachusetts applies its 5% flat rate plus a 4% surtax on income above roughly $1 million, so a jackpot faces 9% — the surtax is what catches most winners off guard.
Calculate your take-home
Massachusetts 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 |
| Massachusetts tax (9%) | −$25,549,992 | −$60,660,000 |
| You keep | $153,349,952 | $365,459,992 |
| Share of the advertised jackpot | 22.8% | 54.2% |
Built from today's live cash value ($283,900,000). Single filer, standard deduction, no other income.
How Massachusetts taxes lottery winnings
Massachusetts 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, 9%.
- The 4% surtax applies to the portion of taxable income above the threshold, which for a jackpot is effectively the whole prize.
- The Massachusetts Lottery withholds 5% state tax at payout, well short of the 9% total.
- Massachusetts is one of the few states with a dedicated lottery commission that also regulates casinos.
Three prizes, worked out for Massachusetts
| Prize | Cash value | Federal | Massachusetts | You keep |
|---|---|---|---|---|
| $1M | $421,200 | −$110,554 | −$37,908 | $272,738 |
| $10M | $4,212,000 | −$1,508,440 | −$379,080 | $2,324,480 |
| Current jackpot ($674M) | $283,888,800 | −$104,988,856 | −$25,549,992 | $153,349,952 |
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 Massachusetts 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 Massachusetts because New Hampshire 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 Massachusetts 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 Massachusetts with its neighbours
| State | Rate on a jackpot | Take-home (lump sum) | Difference |
|---|---|---|---|
| Massachusetts | 9% | $153,349,952 | — |
| Connecticut | 6.99% | $159,056,117 | +$5,706,165 |
| Rhode Island | 5.99% | $161,895,005 | +$8,545,053 |
| New Hampshire | 0% | $178,899,944 | +$25,549,992 |
All 46 jurisdictions are listed in the state tax index and the full rate table.
Frequently asked
Does Massachusetts tax Powerball winnings?
Yes. Massachusetts treats a Powerball jackpot as ordinary income and taxes it at 9% at the top marginal rate. On the current $674M jackpot that is about $25,549,992 on a lump-sum claim.
How much would I keep from the current jackpot in Massachusetts?
About $153,349,952 on the cash option ($283,888,800), or about $365,459,992 if you take the 30-payment annuity and stay in Massachusetts for all of it. Both figures are before any local tax, professional fees or other income.
Do I pay Massachusetts tax if I buy the ticket in another state?
Usually yes. Massachusetts taxes residents on worldwide income, so a prize won in a no-tax state such as New Hampshire is still Massachusetts 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 9%.
Can I claim anonymously in Massachusetts?
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 Massachusetts lottery claim rules before you sign the back of the ticket.