A Powerball jackpot bought in New Jersey is taxed at 10.75% at the state level, among the highest in the country. On today's $674,000,000 jackpot that is about $30,518,046 to New Jersey, leaving $148,381,898 from the $283,888,800 cash option.
New Jersey’s top rate is 10.75% on income above $1 million, and lottery prizes count. Only New York and Hawaii take a bigger share at the top end.
Calculate your take-home
New Jersey 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 |
| New Jersey tax (10.75%) | −$30,518,046 | −$72,455,000 |
| You keep | $148,381,898 | $353,664,992 |
| Share of the advertised jackpot | 22.0% | 52.5% |
Built from today's live cash value ($283,900,000). Single filer, standard deduction, no other income.
How New Jersey taxes lottery winnings
New Jersey 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, 10.75%.
- New Jersey withholds 5% on prizes from $10,000 to $500,000 and 8% above $500,000 — both below the 10.75% top rate.
- New Jersey has no local income tax; the state rate is the whole bill.
Three prizes, worked out for New Jersey
| Prize | Cash value | Federal | New Jersey | You keep |
|---|---|---|---|---|
| $1M | $421,200 | −$110,554 | −$45,279 | $265,367 |
| $10M | $4,212,000 | −$1,508,440 | −$452,790 | $2,250,770 |
| Current jackpot ($674M) | $283,888,800 | −$104,988,856 | −$30,518,046 | $148,381,898 |
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 New Jersey 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 New Jersey 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 New Jersey 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 New Jersey with its neighbours
| State | Rate on a jackpot | Take-home (lump sum) | Difference |
|---|---|---|---|
| New Jersey | 10.75% | $148,381,898 | — |
| New York | 10.9% | $147,956,065 | −$425,833 |
| Pennsylvania | 0% | $178,899,944 | +$30,518,046 |
| Delaware | 6.6% | $160,163,283 | +$11,781,385 |
All 46 jurisdictions are listed in the state tax index and the full rate table.
Frequently asked
Does New Jersey tax Powerball winnings?
Yes. New Jersey treats a Powerball jackpot as ordinary income and taxes it at 10.75% at the top marginal rate. On the current $674M jackpot that is about $30,518,046 on a lump-sum claim.
How much would I keep from the current jackpot in New Jersey?
About $148,381,898 on the cash option ($283,888,800), or about $353,664,992 if you take the 30-payment annuity and stay in New Jersey for all of it. Both figures are before any local tax, professional fees or other income.
Do I pay New Jersey tax if I buy the ticket in another state?
Usually yes. New Jersey taxes residents on worldwide income, so a prize won in a no-tax state such as Pennsylvania is still New Jersey 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 10.75%.
Can I claim anonymously in New Jersey?
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 New Jersey lottery claim rules before you sign the back of the ticket.