A Powerball jackpot bought in Pennsylvania faces federal tax only — Pennsylvania takes nothing at the state level. On today's $674,000,000 jackpot that leaves about $178,899,944 from the $283,888,800 cash option.
Pennsylvania has a 3.07% flat income tax, but it exempts Pennsylvania Lottery prizes from it. Win on a ticket bought in Pennsylvania and the state takes nothing — the same deal California offers.
Calculate your take-home
Pennsylvania 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 |
| Pennsylvania tax (none) | $0 | $0 |
| You keep | $178,899,944 | $426,119,992 |
| Share of the advertised jackpot | 26.5% | 63.2% |
Built from today's live cash value ($283,900,000). Single filer, standard deduction, no other income.
How Pennsylvania taxes lottery winnings
Pennsylvania is one of only two states with an income tax that still exempts its own lottery prizes. The practical effect: buy the ticket in Pennsylvania and the state share is zero, even though Pennsylvania's top income tax rate is high. The federal 37% rate still applies to the cash value, and the 24% withholding rule still applies at payout.
- The exemption covers Pennsylvania Lottery prizes only. Winnings from another state’s lottery are taxable at 3.07%.
- The exemption attaches to the prize, not the winner: a nonresident who claims a Pennsylvania Lottery prize also escapes Pennsylvania tax.
- Local earned income tax does not apply to lottery winnings in Pennsylvania.
Three prizes, worked out for Pennsylvania
| Prize | Cash value | Federal | Pennsylvania | You keep |
|---|---|---|---|---|
| $1M | $421,200 | −$110,554 | $0 | $310,646 |
| $10M | $4,212,000 | −$1,508,440 | $0 | $2,703,560 |
| Current jackpot ($674M) | $283,888,800 | −$104,988,856 | $0 | $178,899,944 |
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 Pennsylvania 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.
Because Pennsylvania takes nothing on a home-state ticket, buying elsewhere only adds another state's tax — there is nothing for Pennsylvania to credit back. A resident who buys in New Jersey pays that state's withholding at claim and settles the difference there at filing, with no offset at home.
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 Pennsylvania with its neighbours
| State | Rate on a jackpot | Take-home (lump sum) | Difference |
|---|---|---|---|
| Pennsylvania | 0% | $178,899,944 | — |
| New Jersey | 10.75% | $148,381,898 | −$30,518,046 |
| New York | 10.9% | $147,956,065 | −$30,943,879 |
| Ohio | 2.75% | $171,093,002 | −$7,806,942 |
All 46 jurisdictions are listed in the state tax index and the full rate table.
Frequently asked
Does Pennsylvania tax Powerball winnings?
No. Pennsylvania exempts prizes from its own state lottery, so a Powerball ticket bought in Pennsylvania faces federal tax only.
How much would I keep from the current jackpot in Pennsylvania?
About $178,899,944 on the cash option ($283,888,800), or about $426,119,992 if you take the 30-payment annuity and stay in Pennsylvania for all of it. Both figures are before any local tax, professional fees or other income.
Do I pay Pennsylvania tax if I buy the ticket in another state?
It depends on residency. Pennsylvania 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 Pennsylvania 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 Pennsylvania?
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 Pennsylvania lottery claim rules before you sign the back of the ticket.