$1 Billion Lottery Jackpot After Taxes
A $1 billion Powerball or Mega Millions jackpot never pays $1 billion in cash. The lump sum is about 47% of the advertised number, federal tax reaches the 37% bracket, and the state where you bought the ticket may take up to 10.9% more. Here is the real math for every state (rates as of January 2026).
Lump sum, no-tax state (TX, FL, CA…)
$296,144,043
29.61% of the advertised jackpot
Lump sum, New York (10.9%)
$244,914,043
NYC residents net even less (14.776% combined)
Annuity total, no-tax state
$631,321,282
30 payments over 29 years, each +5%
$1 Billion after taxes in every state
Net lump sum (47% cash value) and net 30-year annuity total after federal and state taxes. Sorted from highest to lowest take-home.
| State | State tax | Lump sum net | Annuity net (total) |
|---|---|---|---|
| Alaska(no lottery) | None | $296,144,043 | $631,321,282 |
| California | None | $296,144,043 | $631,321,282 |
| Delaware | None | $296,144,043 | $631,321,282 |
| Florida | None | $296,144,043 | $631,321,282 |
| Nevada(no lottery) | None | $296,144,043 | $631,321,282 |
| New Hampshire | None | $296,144,043 | $631,321,282 |
| South Dakota | None | $296,144,043 | $631,321,282 |
| Tennessee | None | $296,144,043 | $631,321,282 |
| Texas | None | $296,144,043 | $631,321,282 |
| Washington | None | $296,144,043 | $631,321,282 |
| Wyoming | None | $296,144,043 | $631,321,282 |
| Arizona | 2.5% | $284,394,043 | $606,321,282 |
| North Dakota | 2.5% | $284,394,043 | $606,321,282 |
| Ohio | 2.75% | $283,219,043 | $603,821,282 |
| Indiana | 3% | $282,044,043 | $601,321,282 |
| Louisiana | 3% | $282,044,043 | $601,321,282 |
| Pennsylvania | 3.07% | $281,715,043 | $600,621,282 |
| Kentucky | 3.5% | $279,694,043 | $596,321,282 |
| Iowa | 3.8% | $278,284,043 | $593,321,282 |
| Arkansas | 3.9% | $277,814,043 | $592,321,282 |
| North Carolina | 3.99% | $277,391,043 | $591,421,282 |
| Mississippi | 4% | $277,344,043 | $591,321,282 |
| Michigan | 4.25% | $276,169,043 | $588,821,282 |
| Colorado | 4.4% | $275,464,043 | $587,321,282 |
| Utah(no lottery) | 4.5% | $274,994,043 | $586,321,282 |
| Nebraska | 4.55% | $274,759,043 | $585,821,282 |
| Missouri | 4.7% | $274,054,043 | $584,321,282 |
| Oklahoma | 4.75% | $273,819,043 | $583,821,282 |
| West Virginia | 4.82% | $273,490,043 | $583,121,282 |
| Illinois | 4.95% | $272,879,043 | $581,821,282 |
| Alabama(no lottery) | 5% | $272,644,043 | $581,321,282 |
| Georgia | 5.19% | $271,751,043 | $579,421,282 |
| Idaho | 5.3% | $271,234,043 | $578,321,282 |
| Kansas | 5.7% | $269,354,043 | $574,321,282 |
| Virginia | 5.75% | $269,119,043 | $573,821,282 |
| Montana | 5.9% | $268,414,043 | $572,321,282 |
| New Mexico | 5.9% | $268,414,043 | $572,321,282 |
| Rhode Island | 5.99% | $267,991,043 | $571,421,282 |
| South Carolina | 6.2% | $267,004,043 | $569,321,282 |
| Connecticut | 6.99% | $263,291,043 | $561,421,282 |
| Maine | 7.15% | $262,539,043 | $559,821,282 |
| Wisconsin | 7.65% | $260,189,043 | $554,821,282 |
| Vermont | 8.75% | $255,019,043 | $543,821,282 |
| Maryland | 8.95% | $254,079,043 | $541,821,282 |
| Massachusetts | 9% | $253,844,043 | $541,321,282 |
| Minnesota | 9.85% | $249,849,043 | $532,821,282 |
| Oregon | 9.9% | $249,614,043 | $532,321,282 |
| District of Columbia | 10.75% | $245,619,043 | $523,821,282 |
| New Jersey | 10.75% | $245,619,043 | $523,821,282 |
| New York | 10.9% | $244,914,043 | $522,321,282 |
| Hawaii(no lottery) | 11% | $244,444,043 | $521,321,282 |
Other jackpot sizes
$1 Billion jackpot FAQ
How much is the $1 billion jackpot after taxes?
Taking the lump sum (cash value about 47% of the advertised jackpot), you would net roughly $296,144,043 in a no-tax state like Texas or Florida, down to about $244,914,043 in New York (10.9% state tax). The 30-year annuity nets roughly $631,321,282 in total in a no-tax state.
Why do I lose more than half of a $1 billion jackpot?
Two discounts stack: the lump-sum cash value is only about 47% of the advertised number, and then federal tax takes an effective ~37% of that at jackpot size, plus state tax of 0–10.9%. The advertised figure is the pre-tax 30-year annuity total, not what anyone takes home in cash.
Should I take the lump sum or the annuity?
The annuity delivers a larger after-tax total and built-in spending discipline; the lump sum gives immediate control and the chance to out-invest the annuity's implicit return. Most winners take the cash, but the right answer depends on your discipline, age, and investment plan — see our lump sum vs annuity guide.