Powerball Payout Calculator Iowa
Iowa taxes lottery winnings at 3.8% on top of federal tax. Iowa moved to a flat 3.8% income tax; the lottery withholds 5% up front on large prizes, with the difference settled at filing. (as of Jan 2026)
Calculate your exact Iowa payout →Example: what a jackpot is worth in Iowa
After-tax estimates using 3.8% state tax, the 2026 federal brackets (24% withheld up front, 37% top rate), and a lump sum cash value of 47% of the advertised jackpot.
| Advertised jackpot | Lump sum net | Annuity net (30-yr total) | First annuity payment (net) |
|---|---|---|---|
| $100M | $27,868,043 | $60,521,282 | $935,088 |
| $500M | $139,164,043 | $297,321,282 | $4,499,268 |
| $1B | $278,284,043 | $593,321,282 | $8,954,492 |
How Iowa compares
Eleven jurisdictions take no state tax on lottery wins (including Texas, Florida, and California). Among states that do tax, rates run from 2.5% (North Dakota, Arizona) to 10.9% (New York). See the full 51-state comparison table or read lump sum vs annuity: which to take.
Iowa lottery tax FAQ
How much tax does Iowa take from lottery winnings?
Iowa moved to a flat 3.8% income tax; the lottery withholds 5% up front on large prizes, with the difference settled at filing.
What would I actually take home from a $500 million jackpot in Iowa?
Taking the lump sum (cash value about 47% of the jackpot), you would clear roughly $139,164,043 after federal and state taxes. Taking the 30-year annuity, the after-tax total is roughly $297,321,282, paid in 30 growing installments.
Is the federal tax the same in Iowa as everywhere else?
Yes. Federal treatment is identical nationwide: 24% is withheld on prizes over $5,000, and jackpot-size winnings reach the 37% top bracket (income above $640,600 for a single filer in 2026), so the remainder is due when you file.
Do I pay Iowa tax if I bought the ticket somewhere else?
State withholding follows the state of purchase. If you live in Iowa but bought the winning ticket in another state, that state withholds first — Iowa then taxes you as a resident with a credit for tax paid there (rules vary; confirm with a tax professional).