District of Columbia Lottery Taxes
District of Columbia withholds 10.75% from lottery prizes (prizes over $5,000), on top of the federal 24% on prizes over $5,000. A Powerball jackpot winner taking the cash here keeps about $161 million of $307.2 million.
What a prize is worth in District of Columbia
Three prizes, as the cheque is written and after the federal return. The return is a single filer earning $50,000 besides the prize, with the 2026 brackets and standard deduction; other income changes the bill, which is what the calculator is for. What you finally owe District of Columbia is worked out on its own return at its own income-tax rates, so the state line here is the withholding.
- Federal withheld
- $0
- District of Columbia withheld
- $0
- Cheque
- $1,000
- Federal tax on it
- $120
- Federal withheld
- $2,400
- District of Columbia withheld
- $1,075
- Cheque
- $6,525
- Federal tax on it
- $1,200
- Federal withheld
- $240,000
- District of Columbia withheld
- $107,500
- Cheque
- $652,500
- Federal tax on it
- $334,680
A $1,000 prize has nothing withheld federally and is under the $2,000 at which the lottery reports it on Form W-2G, but it is still taxable income. District of Columbia starts withholding on prizes over $5,000. The withholding is a deposit against the federal bill, not the bill: on $1,000,000 the 24% falls $94,680 short, and on $1,000, with nothing withheld, about $120 is still owed.
The Powerball jackpot after District of Columbia tax
The advertised Powerball jackpot for the October 28, 2026 drawing is $716 million, or $307.2 million as a lump sum. A single winner taking the cash in District of Columbia:
What the same jackpot leaves a winner in every state · District of Columbia Powerball: add-ons and what a ticket is worth here
The federal rules, the same in every state
- 24% is withheld for the IRS when a prize, less the ticket, is over $5,000.
- A prize of $2,000 or more (and at least 300 times the ticket) is reported on Form W-2G. The threshold was $600 until 2025.
- Without a Social Security number on file, 24% backup withholding applies from the reporting threshold. A winner who is not a US resident has 30% withheld.
- Every prize is taxable income, reported or not. A jackpot is taxed at up to 37% at filing.
Work out your own number
The lottery tax calculator takes any prize, lump sum or annuity, filing status and state, with District of Columbia's rate already in it. Claiming a prize, and the tax that comes with it covers claim deadlines and what to do first.
District of Columbia lottery tax questions
- How much tax does District of Columbia take from lottery winnings?
- District of Columbia withholds 10.75% (prizes over $5,000). That is withholding, paid on your behalf before the cheque is written; what you finally owe the state is settled on your return.
- Do I pay federal tax on a District of Columbia lottery prize?
- Yes. The lottery withholds 24% for the IRS when the prize, less the ticket, is over $5,000, and reports prizes of $2,000 or more on Form W-2G. A large prize is taxed at up to 37% at filing, so the 24% is rarely the end of it: on a $1,000,000 prize a single filer earning $50,000 owes about $334,680 more federally, $94,680 more than was withheld.
- How much of a $10,000 lottery prize do you keep in District of Columbia?
- The cheque is $6,525: $2,400 withheld federally and $1,075 for District of Columbia. After the federal return, a single filer earning $50,000 keeps about $7,725.
- How much would a Powerball jackpot winner keep in District of Columbia?
- On the $716 million jackpot for the October 28, 2026 drawing, a single winner taking the $307.2 million cash option keeps about $161 million after federal tax at filing and District of Columbia's 10.75%. That ranks 45 of 46 lotteries. Every state, side by side.
- Where do I claim a big prize in District of Columbia?
- At DC Lottery, which must pay a prize on a ticket it sold; a ticket bought in District of Columbia is claimed there whatever state you live in. dclottery.com lists its claim centres and deadlines.