A Powerball jackpot bought in Tennessee faces federal tax only — Tennessee 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.
Tennessee repealed its Hall income tax on interest and dividends, and it has never taxed wages. A Powerball prize bought in Tennessee faces federal tax only.
Calculate your take-home
Tennessee 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 |
| Tennessee 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 Tennessee taxes lottery winnings
Tennessee levies no personal income tax at all, so there is no state layer to apply to a jackpot. The federal 37% rate still applies to the cash value, and the 24% withholding rule still applies at payout.
- No state income tax, no state withholding, no state return for lottery prizes.
- Tennessee’s lottery proceeds fund college scholarships through the HOPE program.
Three prizes, worked out for Tennessee
| Prize | Cash value | Federal | Tennessee | 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 Tennessee 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 Tennessee takes nothing on a home-state ticket, buying elsewhere only adds another state's tax — there is nothing for Tennessee to credit back. A resident who buys in Kentucky 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 Tennessee with its neighbours
| State | Rate on a jackpot | Take-home (lump sum) | Difference |
|---|---|---|---|
| Tennessee | 0% | $178,899,944 | — |
| Kentucky | 3.5% | $168,963,836 | −$9,936,108 |
| Georgia | 4.99% | $164,733,893 | −$14,166,051 |
| North Carolina | 3.99% | $167,572,781 | −$11,327,163 |
All 46 jurisdictions are listed in the state tax index and the full rate table.
Frequently asked
Does Tennessee tax Powerball winnings?
No. Tennessee has no personal income tax, so a ticket bought here faces federal tax only.
How much would I keep from the current jackpot in Tennessee?
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 Tennessee for all of it. Both figures are before any local tax, professional fees or other income.
Do I pay Tennessee tax if I buy the ticket in another state?
It depends on residency. Tennessee 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 Tennessee 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 Tennessee?
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 Tennessee lottery claim rules before you sign the back of the ticket.