PBPowerballTax

8.75% state lottery tax

Vermont Powerball Tax Calculator

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Vermont applies a 8.75% state lottery tax — among the higher U.S. rates. Combined with federal taxes, the effective tax on a large jackpot exceeds 40%.

Note: 8.75% top rate

Vermont 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$32.6M45.61%$54.3M
$300M$97.7M45.7%$162.8M
$500M$162.8M45.72%$271.3M
$700M$227.9M45.73%$379.8M
$1B$325.6M45.74%$542.6M
$1.5B$488.3M45.74%$813.8M
$2B$651.1M45.74%$1.1B

Vermont vs neighboring states ($1B cash)

StateRateCash take-home
Vermont (VT)8.75%$325.6M
New Hampshire (NH)0%$378.1M
Massachusetts (MA)5%$348.1M
New York (NY)10.9%$312.7M

Frequently asked questions

Does Vermont tax Powerball winnings?

Vermont taxes Powerball winnings at 8.75%. Note: 8.75% top rate.

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

On a $1 billion advertised jackpot taken as cash (gross $600,000,000), a Vermont winner keeps approximately $325,583,278 after taxes — an effective rate of about 45.74%.

Can I avoid Vermont 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 Vermont is taxed at Vermont's 8.75% rate; the winner's home state may credit or assess additional tax at filing.

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