A Powerball jackpot bought in New York is taxed at 10.9% at the state level, among the highest in the country. On today's $674,000,000 jackpot that is about $30,943,879 to New York, leaving $147,956,065 from the $283,888,800 cash option.
New York taxes a jackpot at 10.9% at the state level — and if the winner lives in New York City, another 3.876% goes to the city. That combination makes NYC the most heavily taxed place in the country to win a lottery.
Calculate your take-home
New York 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 York tax (10.9%) | −$30,943,879 | −$73,466,000 |
| You keep | $147,956,065 | $352,653,992 |
| Share of the advertised jackpot | 22.0% | 52.3% |
Built from today's live cash value ($283,900,000). Single filer, standard deduction, no other income.
How New York taxes lottery winnings
New York 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, 10.9%.
- New York withholds 8.82% at payout, short of the 10.9% state liability before city tax.
- The city surcharge applies based on residence, so a Long Island winner pays 10.9% and a Manhattan winner pays 14.776%.
- New York is one of the states that allows winners to claim through a trust or LLC in limited circumstances, which affects anonymity but not the tax rate.
- New York City residents add 3.876%, and Yonkers residents add 1.9594%, on top of the 10.9% state rate.
Three prizes, worked out for New York
| Prize | Cash value | Federal | New York | You keep |
|---|---|---|---|---|
| $1M | $421,200 | −$110,554 | −$45,911 | $264,735 |
| $10M | $4,212,000 | −$1,508,440 | −$459,108 | $2,244,452 |
| Current jackpot ($674M) | $283,888,800 | −$104,988,856 | −$30,943,879 | $147,956,065 |
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 York 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 York 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 York 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 York with its neighbours
| State | Rate on a jackpot | Take-home (lump sum) | Difference |
|---|---|---|---|
| New York | 10.9% | $147,956,065 | — |
| New Jersey | 10.75% | $148,381,898 | +$425,833 |
| Connecticut | 6.99% | $159,056,117 | +$11,100,052 |
| Pennsylvania | 0% | $178,899,944 | +$30,943,879 |
All 46 jurisdictions are listed in the state tax index and the full rate table.
Frequently asked
Does New York tax Powerball winnings?
Yes. New York treats a Powerball jackpot as ordinary income and taxes it at 10.9% at the top marginal rate. On the current $674M jackpot that is about $30,943,879 on a lump-sum claim. New York City residents add 3.876%, and Yonkers residents add 1.9594%, on top of the 10.9% state rate.
How much would I keep from the current jackpot in New York?
About $147,956,065 on the cash option ($283,888,800), or about $352,653,992 if you take the 30-payment annuity and stay in New York for all of it. Both figures are before any local tax, professional fees or other income.
Do I pay New York tax if I buy the ticket in another state?
Usually yes. New York taxes residents on worldwide income, so a prize won in a no-tax state such as Pennsylvania is still New York 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 10.9%.
Can I claim anonymously in New York?
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 York lottery claim rules before you sign the back of the ticket.