Pennsylvania lottery tax at a glance
| State tax on a jackpot | 3.07% flat rate |
|---|---|
| Withheld when you claim a jackpot | 24% federal + 3.07% Pennsylvania |
| $1 million prize after taxes | $649,300 |
| $835 Million Powerball jackpot, cash option | $214,539,470 |
| Time to claim a Powerball jackpot | 1 year |
| Stay anonymous | No |
Single filer with no other income, lump sum, 2026 rates. Details and sources for each line are below.
Does Pennsylvania tax lottery winnings?
Yes. Pennsylvania taxes lottery prizes as ordinary income, at a flat 3.07% in 2026. Pennsylvania withholds 3.07% for state tax when the prize is paid. For a large prize, that covers most of the state tax you will owe.
Source: Pennsylvania Department of Revenue (“personal income tax of 3.07 percent”), checked October 1, 2026.
Pennsylvania settles its state tax at the claim
Pennsylvania taxes the prize at a flat 3.07% with no deduction in this model: $1,000,000 × 3.07% = $30,700, the same amount the Lottery withholds when it pays ($30,700). The state side is finished at the claim; the federal side is not. $240,000 is withheld against an estimated $320,000 of federal tax, so $80,000 is still due when you file, leaving $649,300. Local earned income taxes are not modeled.
For comparison, a $10,000 cash prize on top of $60,000 of other income adds $1,550 in federal tax and $307 in modeled Pennsylvania tax, leaving $8,143 from the prize. The estimate subtracts tax on the existing income so that only the prize’s additional tax is charged.
Illustrative 2026 calculation, not a reported payout. Rule source. Model assumptions and corrections.
Pennsylvania Powerball and Mega Millions payout after taxes
A single winner living in Pennsylvania who takes the cash option on the $835 Million Powerball jackpot keeps about $214,539,470, after about $132,373,000 in federal tax and $10,987,530 in Pennsylvania tax. Recalculated daily.
| Game | Pennsylvania tax (lump sum) | Lump sum take-home | Annuity take-home (30 payments) |
|---|---|---|---|
| Powerball$835 Million jackpot · $357.9 Million cash | $10,987,530 | $214,539,470 | $501,915,493 |
| Mega Millions$482 Million jackpot · $203.6 Million cash | $6,250,520 | $122,067,480 | $290,362,596 |
How much is $1 million after taxes in Pennsylvania?
About $649,300. A single filer with no other income pays about $320,000 in federal tax and $30,700 in Pennsylvania tax on a $1,000,000 prize. When you claim, $270,700 is withheld, and the rest of the tax is due when you file.
| Prize (cash) | Federal tax | Pennsylvania tax | Take-home |
|---|---|---|---|
| $1,000,000 | $320,000 | $30,700 | $649,300 |
| $2,000,000 | $690,000 | $61,400 | $1,248,600 |
| $10,000,000 | $3,650,000 | $307,000 | $6,043,000 |
| $100,000,000 | $36,950,000 | $3,070,000 | $59,980,000 |
| $1,000,000,000 | $369,950,000 | $30,700,000 | $599,350,000 |
Lump sum, single filer with no other income, 2026 federal and Pennsylvania rates. A $2,000,000 prize is the Powerball or Mega Millions match-5 prize with the multiplier. Smaller prizes and other states: lottery winnings after taxes by amount.
Claiming in Pennsylvania: one year, and jackpots only in Middletown
- Pennsylvania draw-game prizes, including Powerball and Mega Millions, expire one year from the drawing date (Pennsylvania Lottery).
- A Powerball or Mega Millions jackpot must be claimed in person at Pennsylvania Lottery headquarters, 1200 Fulling Mill Road in Middletown. Prizes over $2,500 are paid only by the Lottery, by mail or at an area office (Pennsylvania Lottery).
- On prizes over $5,000 the Pennsylvania Lottery withholds 24% for federal tax and the 3.07% state income tax before it pays you (Pennsylvania Lottery).
- The Pennsylvania Lottery can only pay a prize on a ticket it sold. That includes Powerball and Mega Millions: a ticket bought in another state is claimed from that state’s lottery (Pennsylvania Lottery).
Bought the ticket in another state? The deadline is set by the lottery that sold it: see lottery claim deadlines in every state.
Can you stay anonymous in Pennsylvania?
No. Name and location are public. Trust or entity claims also require disclosure of individual beneficiaries (source). The guide to what to do if you win the lottery compares the rules in every state.
Pennsylvania compared with neighboring states
$835 Million Powerball jackpot, lump sum, by state of residence. A winner living in Ohio keeps $1,145,664 more than a Pennsylvania resident, and one living in New York keeps $28,022,698 less.
| State of residence | State & local tax | Lump sum take-home |
|---|---|---|
| Ohio | $9,841,866 | $215,685,134 |
| Pennsylvania | $10,987,530 | $214,539,470 |
| West Virginia | $17,249,942 | $208,277,058 |
| Delaware | $23,620,384 | $201,906,616 |
| MarylandIncludes average county tax | $34,219,064 | $191,307,936 |
| New Jersey | $38,441,326 | $187,085,674 |
| New York | $39,010,228 | $186,516,772 |
Hypothetical residence-tax comparison only. Tax imposed by the ticket-selling state and credits for tax paid elsewhere are excluded; this is especially important for residents of states without lottery sales. Taxes on lottery winnings explains what happens when you buy in another state.
Estimates for a single filer with no other income unless noted. Formulas and sources: methodology. Every state's rates: lottery tax by state.