A Powerball jackpot bought in Rhode Island is taxed at 5.99% at the state level, close to the middle of the pack. On today's $674,000,000 jackpot that is about $17,004,939 to Rhode Island, leaving $161,895,005 from the $283,888,800 cash option.
Rhode Island’s top income tax rate is 5.99%, and lottery prizes are taxed as ordinary income. No local income tax applies in the state.
Calculate your take-home
Rhode Island 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 |
| Rhode Island tax (5.99%) | −$17,004,939 | −$40,372,600 |
| You keep | $161,895,005 | $385,747,392 |
| Share of the advertised jackpot | 24.0% | 57.2% |
Built from today's live cash value ($283,900,000). Single filer, standard deduction, no other income.
How Rhode Island taxes lottery winnings
Rhode Island 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, 5.99%.
- Rhode Island withholds 5.99% at payout, matching the top rate.
- The state has no county governments, so there is no county-level tax layer at all.
Three prizes, worked out for Rhode Island
| Prize | Cash value | Federal | Rhode Island | You keep |
|---|---|---|---|---|
| $1M | $421,200 | −$110,554 | −$25,230 | $285,416 |
| $10M | $4,212,000 | −$1,508,440 | −$252,299 | $2,451,261 |
| Current jackpot ($674M) | $283,888,800 | −$104,988,856 | −$17,004,939 | $161,895,005 |
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 Rhode Island 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 Rhode Island 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 Rhode Island 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 Rhode Island with its neighbours
| State | Rate on a jackpot | Take-home (lump sum) | Difference |
|---|---|---|---|
| Rhode Island | 5.99% | $161,895,005 | — |
| Massachusetts | 9% | $153,349,952 | −$8,545,053 |
| Connecticut | 6.99% | $159,056,117 | −$2,838,888 |
| New Hampshire | 0% | $178,899,944 | +$17,004,939 |
All 46 jurisdictions are listed in the state tax index and the full rate table.
Frequently asked
Does Rhode Island tax Powerball winnings?
Yes. Rhode Island treats a Powerball jackpot as ordinary income and taxes it at 5.99% at the top marginal rate. On the current $674M jackpot that is about $17,004,939 on a lump-sum claim.
How much would I keep from the current jackpot in Rhode Island?
About $161,895,005 on the cash option ($283,888,800), or about $385,747,392 if you take the 30-payment annuity and stay in Rhode Island for all of it. Both figures are before any local tax, professional fees or other income.
Do I pay Rhode Island tax if I buy the ticket in another state?
Usually yes. Rhode Island taxes residents on worldwide income, so a prize won in a no-tax state such as New Hampshire is still Rhode Island 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 5.99%.
Can I claim anonymously in Rhode Island?
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 Rhode Island lottery claim rules before you sign the back of the ticket.