North Dakota State Tax on Lottery Winnings
Free North Dakota lottery tax calculator for Powerball and Mega Millions. North Dakota taxes lottery winnings at 2.50% (top marginal rate).
Current Powerball $302M jackpot, single filer
$83.18M
Actual take-home: 27.5% of what they advertise
Official Lottery
North Dakota Lottery ↗
www.ndlottery.org
State Budget FY2024
$5.1B
~$6,538 per resident ↗
What you'd actually take home.
Lottery tax calculator for Powerball, Mega Millions, and every state.
Lotteries advertise the jackpot, never the after-tax cash, so pick your game, state, and filing status to see what you'd really keep after federal and state taxes.
Standard deduction: $16,100. All lottery income is taxed at your individual rate. This is the most common filing status for winners.
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From advertised to deposit, line by line.
Federal withholding hits first, then your full bracket math, then the state. Every row updates when you change the controls above. Sources are cited on each row.
Even winning is statistically a stretch.
How unlikely is "unlikely"?
The math most ticket buyers never see.
Eleven pages, three facts each. Every number comes from official odds, IRS 2026 brackets, FY2024 federal spending, and lottery cash-option ratios.
The wait
Step 04 · Browse by stateAll 50 states + DC, ranked by lottery tax bite.
10 states · no lottery taxHighest: Hawaii, Massachusetts, Minnesota, New Jersey, New York, Oregon, Washington DC
All 50 states + DC, ranked by lottery tax bite.
Click any tile to see that state's full breakdown. Green = no state lottery tax. Red = top-bracket states.
North Dakota lottery winnings tax overview
The North Dakota state tax on lottery winnings is 2.5%, well below the national median for states that collect a lottery tax. This puts North Dakota at number 41 out of 41 taxed states, which means a larger share of your Powerball or Mega Millions prize stays in your pocket once the federal lottery tax of up to 37% is settled. The North Dakota lottery tax calculator above shows the exact lump sum take home for any current jackpot.
How the North Dakota lottery payout calculator works
In North Dakota, the lottery payout calculation begins with the lump sum cash option, which equals roughly 45% of the advertised jackpot. The IRS withholds 24% federal lottery tax at the moment of payout, but a Powerball or Mega Millions prize pushes the winner into the 37% top federal bracket, so additional federal tax comes due at filing. On top of that, North Dakota taxes lottery winnings at 2.5% of the full lump sum. The lottery payout calculator above runs all of this math for you, using IRS 2026 brackets and the top marginal North Dakota lottery tax rate.
How North Dakota compares to other lottery tax states
North Dakota's 2.5% lottery tax rate ranks number 41 out of 41 taxed states. States with a higher lottery tax rate than North Dakota include Ohio and Arizona. For context, 10 states collect no lottery tax at all, which means a Powerball or Mega Millions winner in one of those states keeps an extra 2.5% of their lump sum compared to a winner in North Dakota.
North Dakota lottery tax FAQs
What is the North Dakota state tax on lottery winnings?
North Dakota taxes lottery winnings at a top marginal rate of 2.5%. This rate applies to the lump sum cash option from any Powerball or Mega Millions prize, and it is paid in addition to the federal lottery tax of up to 37% at the highest bracket. The lottery tax calculator above shows the exact dollar amount for any current jackpot.
Should I take the lump sum or annuity in North Dakota?
Most Powerball and Mega Millions winners choose the lump sum cash option. In North Dakota, both options face the same 2.5% state lottery tax rate, but the annuity spreads the tax across 30 years while the lump sum delivers the full cash value now. The lottery payout calculator above shows the lump sum after taxes; the annuity choice is a separate financial decision based on personal goals and investment return assumptions.
Does North Dakota withhold tax on a lottery payout before payment?
The IRS withholds 24% federal lottery tax on any lottery prize above $5,000 before the winner ever sees the check. North Dakota also withholds state tax at or near the 2.5% top rate at the moment of payout. The remaining federal balance, up to the 37% top bracket, then comes due in April when the winner files a federal return.