PBPowerballTax

10.75% state lottery tax

New Jersey Powerball Tax Calculator

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New Jersey applies a 10.75% state lottery tax — one of the highest in the United States. Combined with federal taxes, more than 40% of the gross payout is owed before the winner sees a dollar.

Note: 10.75% top rate — 2nd highest

New Jersey after-tax take-home by jackpot tier

24% federal withholding + top-bracket adjustment + state tax. Cash lump sum estimated at 60% of advertised jackpot.

AdvertisedCash take-homeCash effectiveAnnuity take-home
$100M$31.4M47.61%$52.3M
$300M$94.1M47.7%$156.8M
$500M$156.8M47.72%$261.3M
$700M$219.5M47.73%$365.8M
$1B$313.6M47.74%$522.6M
$1.5B$470.3M47.74%$783.8M
$2B$627.1M47.74%$1.0B

New Jersey vs neighboring states ($1B cash)

StateRateCash take-home
New Jersey (NJ)10.75%$313.6M
New York (NY)10.9%$312.7M
Pennsylvania (PA)3.07%$359.7M
Delaware (DE)6.6%$338.5M

Frequently asked questions

Does New Jersey tax Powerball winnings?

New Jersey taxes Powerball winnings at 10.75%. Note: 10.75% top rate — 2nd highest.

How much does a $1 billion Powerball winner take home in New Jersey?

On a $1 billion advertised jackpot taken as cash (gross $600,000,000), a New Jersey winner keeps approximately $313,583,278 after taxes — an effective rate of about 47.74%.

Can I avoid New Jersey lottery tax by moving states before claiming?

No. State lottery tax is determined by the state where the ticket was sold, not the winner's residence. A ticket bought in New Jersey is taxed at New Jersey's 10.75% rate; the winner's home state may credit or assess additional tax at filing.

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