4.40% state lottery tax
Colorado Powerball Tax Calculator
Last updated:
Colorado applies a 4.40% state lottery tax. Combined with the 24% federal withholding and the top-bracket federal adjustment, the effective tax on a large jackpot lands around 38–42%.
Note: 4.40% flat income tax
Colorado after-tax take-home by jackpot tier
24% federal withholding + top-bracket adjustment + state tax. Cash lump sum estimated at 60% of advertised jackpot.
| Advertised | Cash take-home | Cash effective | Annuity take-home |
|---|---|---|---|
| $100M | $35.2M | 41.26% | $58.7M |
| $300M | $105.6M | 41.35% | $175.9M |
| $500M | $175.9M | 41.37% | $293.1M |
| $700M | $246.2M | 41.38% | $410.3M |
| $1B | $351.7M | 41.39% | $586.1M |
| $1.5B | $527.5M | 41.39% | $879.1M |
| $2B | $703.3M | 41.39% | $1.2B |
Colorado vs neighboring states ($1B cash)
| State | Rate | Cash take-home |
|---|---|---|
| Colorado (CO) | 4.4% | $351.7M |
| New Mexico (NM) | 5.9% | $342.7M |
| Utah (UT) | 4.65% | $350.2M |
| Nebraska (NE) | 5.2% | $346.9M |