How much tax do you pay on lottery winnings in Pennsylvania?

Pennsylvania taxes lottery winnings at up to 3.07%, its top marginal income tax rate. That is on top of federal tax of up to 37%. On the current Powerball cash value of $326 million, Pennsylvania state tax alone would be about $10,008,200.

Is it better to take the lump sum or annuity in Pennsylvania?

The state rate of 3.07% applies to both, so Pennsylvania's tax treatment does not favour one over the other. The decision comes down to whether you want control of the capital or the structural protection of a payment stream.

How much is withheld immediately?

The lottery withholds 24% federally at claim time, plus 3.07% for Pennsylvania state tax. That is less than you actually owe. The top federal bracket is 37%, and the difference is due when you file.

Does Pennsylvania tax Powerball and Mega Millions winnings?

Yes. Pennsylvania taxes cash prizes at its flat 3.07% personal income tax rate, and the Lottery withholds 3.07% on winnings over $5,000 along with 24% federal. Pennsylvania residents are taxed on lottery winnings from any state, and a Pennsylvania-bought Powerball or Mega Millions ticket is taxable to nonresidents who win.

Can I stay anonymous if I win a Pennsylvania jackpot?

No. Pennsylvania Lottery winners cannot remain anonymous, although only certain claimant information is released. Powerball and Mega Millions jackpots must be claimed in person at headquarters in Middletown, within one year of the drawing date.

Pennsylvania lottery tax calculator

Q: Can lottery winners stay anonymous in Pennsylvania?

No, winner names are public record. Pennsylvania exempted lottery cash prizes until 2016; they are now taxed at the flat 3.07% income tax rate, still one of the lowest anywhere.

Pennsylvania taxes lottery winnings at up to 3.07%, on top of federal tax of up to 37%.

State rate

3.07%

15th lowest of 46 lottery states

Anonymity

No, winner names are public record

Local tax

None

Pennsylvania exempted lottery cash prizes until 2016; they are now taxed at the flat 3.07% income tax rate, still one of the lowest anywhere.

Now spend it: $195.4 million from PennsylvaniaWhat the current Powerball leaves you here, carried straight into the planner. Buy the house, then see what the rest pays you every year.

Pennsylvania has a flat 3.07% personal income tax, and the Lottery withholds exactly that rate on prizes over $5,000, on top of 24% federal. That makes Pennsylvania one of the simplest cases: the state share withheld at claim matches the state rate owed at filing, so the surprise bill is almost entirely federal. One rule helps winners here. Pennsylvania Lottery tickets bought in the same tax year can be deducted from winnings received in that year, though expenses such as travel and parking cannot.

Pennsylvania did not always tax its own prizes, which is why older advice is wrong. From July 21, 1983 through December 31, 2015, all Pennsylvania Lottery prizes were excluded from the state's gambling and lottery winnings income class. Act 84 of 2016 brought cash prizes paid on or after January 1, 2016 into it and required withholding on payments made after July 12, 2016. Today a Pennsylvania jackpot winner pays 3.07%, and the Lottery will not let a jackpot winner stay anonymous.

Claiming is in person at Middletown, and the check comes through the Pennsylvania Treasury. State debts can reduce it: Pennsylvania law directs the Department of Revenue to look for delinquent child support obligors before paying any lottery prize over $2,500 and to intercept winnings for it. Choose between cash and annuity within 60 days of filing your claim. The Lottery cannot advise you on that choice, so the decision belongs with your own tax and legal advisers.

Lump sum vs annuity in Pennsylvania

Powerball is currently advertising $760 million, with a cash value of $326 million. Here is what a single filer in Pennsylvania would keep under each payout option.

Lump sum

One payment of $326 million, today

$195,421,800

Federal tax: $120,570,000
Pennsylvania tax: $10,008,200
Effective rate: 40.05%

30-year annuity

$760 million paid across 29 years

$456,967,992

First payment, after tax: $6,905,447
Final payment, after tax: $28,267,949
Total advantage: +$261,546,193

The annuity pays $261,546,193 more in total, but the lump sum can be invested immediately and stays under your control. Around nine in ten winners take the cash. See how to decide between them.

Claiming a jackpot in Pennsylvania

Deadline: Draw game prizes, including Powerball and Mega Millions, expire one year from the drawing date.
Where to claim: A Powerball or Mega Millions jackpot must be claimed in person at Pennsylvania Lottery headquarters in Middletown (1200 Fulling Mill Road). Winners have 60 days from the date the claim is filed to choose the annuity or the cash option.
Staying anonymous: Pennsylvania does not allow anonymous claims, but the Lottery says only certain claimant information is released, to show winners are real people.
Living in another state: A cash prize on a Powerball or Mega Millions ticket bought from a Pennsylvania vendor is Pennsylvania-source income, taxed for residents and nonresidents alike. Pennsylvania taxes its residents on lottery winnings from every source regardless of where the ticket was bought, with a credit on Schedule G-L for tax paid to the other state, capped at the lesser of the other state's tax or Pennsylvania's 3.07% on that income. Nonresidents are not taxed by Pennsylvania on prizes won on tickets bought in another state.

Run your own numbers

Switch games, compare the annuity, change your filing status, then plan what to do with what is left.

1. Choose a jackpot

Powerball

$760 million

Cash value $326 million

Next draw Saturday, October 31

Mega Millions

$463 million

Cash value $194.9 million

Next draw Friday, October 30

2. Where did you buy the ticket?

Filing status

Payout

3. What you actually take home

Your estimated take-home

$195,421,800

40.05% of the prize goes to tax

You keep$195,421,80059.95%

Federal tax$120,570,00036.98%

Pennsylvania tax$10,008,2003.07%

Cash value (lump sum)	$326,000,000
Federal tax withheld24% taken automatically at claim time	−$78,240,000
Additional federal tax due at filingThe gap between 24% withholding and your real bracket	−$42,330,000
Pennsylvania state tax3.07% top marginal rate	−$10,008,200
Total tax	−$130,578,200
You keep	$195,421,800

The lottery withholds $78,240,000 up front, but your actual federal bill is $120,570,000. Set aside roughly $42,330,000 for April. This shortfall is the most common surprise for jackpot winners.

4. Plan what to do with it

The hard part is not the windfall, it is what is left in year ten. Sketch out your spending and see what the remainder can pay you every year, indefinitely.

What would you buy first?

Tap an idea to add it at a typical price, or dream up your own. Every amount stays editable once it is in your plan.

The fun part

The people you love

Something else

Amount (USD)

Your plan

Nothing yet. Start spending and watch what is left keep paying you.

After-tax winnings: $195,421,800
Planned spending: −$0
Left to invest: $195,421,800

Paid to you every year, for life

$7,816,872

That is $651,406 a month, or about 89 times the typical American household's income, without touching the principal.

Assumes the remaining $195,421,800 is invested and you draw 4.0% a year, the standard planning rule for money meant to last indefinitely.

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Anyone with the link sees your breakdown and can build their own.

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Pennsylvania lottery tax questions

Compare with other states

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Rates reflect each state's top marginal income tax rate as applied to lottery winnings, current as of 2026-01-01. The amount withheld at claim time frequently differs. This is an estimate for planning, not tax advice.

Pennsylvania claim rules checked 2026-10-02 against: