Lottery Payout & Tax Calculator
See what you would actually take home from a Powerball or Mega Millions jackpot after federal and state taxes — lump sum or 30-year annuity, for all 50 states and Washington, DC. Uses the real 2026 federal brackets, not a flat 37% guess. Rates as of January 2026.
State withholding follows the state where the ticket was purchased. If you live in a different state, your home state may also tax the win when you file. California specifically exempts California Lottery winnings from state income tax, even though it taxes other income.
Default 47% is typical for recent Powerball drawings. The exact cash value is announced per drawing — use the official figure when available.
Estimated take-home (lump sum, after all taxes)
$148,094,043
70.38% of the advertised $500M jackpot goes to taxes and the cash-value discount.
| Cash value (47% of jackpot) | $235,000,000 |
|---|---|
| Federal withholding (24% taken immediately) | −$56,400,000 |
| Additional federal owed at filing (progressive to 37%)Effective federal rate 36.98% using 2026 single-filer brackets — not a flat 37% | −$30,505,957 |
| California state tax (none) | $0 |
| Net take-home | $148,094,043 |
Assumes single filer, winnings are your only income, no deductions. The 24% withheld up front is a down payment — jackpot winners owe the rest of the 37% top-bracket bill at tax time.
How the math works
1. Cash value discount
The lump sum is the money actually in the prize pool — typically around 47% of the advertised jackpot. Choosing the annuity gets you the full advertised amount, paid over 30 years.
2. Federal: 24% now, 37% eventually
24% is withheld before you see a cent. We then compute your real bill through every 2026 bracket — 10%, 12%, 22%, 24%, 32%, 35%, 37% — so the estimate is exact, not a flat top-rate guess.
3. State: 0% to 14.8%
Eleven states take nothing. New York takes 10.9% — and New York City residents pay about 14.8% combined. The state where you bought the ticket withholds first.
Check your state
State-by-state payout guides with local tax rates and example calculations:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
No state tax on lottery wins in: Alaska, California, Delaware, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming — full comparison on the lottery taxes by state page.
Popular jackpot breakdowns
Frequently asked questions
How much tax do you pay on lottery winnings?
The IRS withholds 24% of any prize over $5,000 immediately, but jackpot-size winnings fall into the 37% top federal bracket (starting at $640,600 of income for a single filer in 2026), so you owe the difference at tax time. On top of that, most states take between 2.5% and 10.9% — unless you bought the ticket in one of the 11 states that take nothing.
Why is the lump sum so much less than the advertised jackpot?
The advertised jackpot is the total of 30 annuity payments spread over 29 years. The lump sum is the cash actually sitting in the prize pool today — typically around 47% of the advertised number for recent Powerball drawings. Taxes then come out of that smaller cash figure.
Which states don't tax lottery winnings?
Eleven jurisdictions take no state tax on lottery prizes: Alaska, California, Delaware, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. California is notable — it taxes regular income but specifically exempts California Lottery winnings.
Is the 24% withheld all I owe the IRS?
No — that's the most expensive misunderstanding in the lottery. The 24% is only an up-front withholding. A jackpot pushes you into the 37% top bracket, so roughly another 13% of the prize is due when you file. On a $100 million cash prize, that's about $13 million more.
Does it matter where I bought the ticket vs where I live?
Yes. State withholding follows the state where the ticket was purchased. If you live in a different state, your home state generally taxes the winnings too, with a credit for what was withheld. Residents of no-lottery states like Alabama, Hawaii, and Utah still owe home-state income tax on out-of-state wins.
How does the 30-year annuity actually work?
Powerball and Mega Millions pay one installment immediately, then 29 more annual payments, each 5% larger than the last. The 30 payments sum exactly to the advertised jackpot. Each payment is taxed as income in the year you receive it.