Why is the take-home so much less than the jackpot?

Three cuts: the advertised jackpot is an annuity value (the cash option is usually only ~half), federal tax takes up to 37%, and many states take another 3–11% on top.

Which states don't tax lottery winnings?

California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming take no state tax on lottery prizes (and a few states have no lottery at all).

Is only 24% taken out?

24% is withheld immediately, but a large jackpot puts you in the 37% federal bracket — the roughly 13% difference is due when you file your return. This calculator shows both amounts so you're not surprised.

How does the annuity work?

Powerball and Mega Millions pay 30 annual payments that increase 5% each year and add up to the full advertised jackpot. Each payment is taxed in the year you receive it.

Lottery Tax Calculator

See what you'd actually take home from a jackpot — federal + state taxes, lump sum vs. 30-year annuity, year by year.

Advertised Jackpot$Your StateFiling StatusCash Value ($)$Cash Value (%)% of jackpot

Enter the cash value in dollars or as a percentage of the jackpot — the two stay in sync. The advertised cash option is typically 45–52% of the jackpot.

Current State Rate Override (%)State presets are approximate historical rates. Enter the current rate for your residency and ticket jurisdiction. California’s exemption is for California Lottery prizes.

Lump Sum (Cash Option)

One payment today of the cash value.

Cash value$48,000,000

Federal withheld now (24%)−$11,520,000

More federal due at tax time−$6,195,957

State tax (0.00%)$0

You Keep

$30,284,043

effective tax rate 36.9%

Annuity (30 Yearly Payments)

Payments rise 5% each year and total the full jackpot.

Total gross payments$100,000,000

Total federal tax−$35,678,717

Total state tax (0.00%)$0

First-year payment (net)$992,283

You Keep (over 30 years)

$64,321,282

effective tax rate 35.7%

The annuity pays $34,037,240 more after taxes than the lump sum — but the lump sum gives you $30,284,043 today to invest. (Most winners take the cash option.)

Year	Gross Payment	Federal Tax	State Tax	Net Payment
1	$1,505,144	−$512,860	$0	$992,283
2	$1,580,401	−$540,706	$0	$1,039,695
3	$1,659,421	−$569,943	$0	$1,089,478
4	$1,742,392	−$600,642	$0	$1,141,750
5	$1,829,511	−$632,876	$0	$1,196,635
6	$1,920,987	−$666,722	$0	$1,254,265
7	$2,017,036	−$702,261	$0	$1,314,776
8	$2,117,888	−$739,576	$0	$1,378,312
9	$2,223,782	−$778,757	$0	$1,445,026
10	$2,334,972	−$819,897	$0	$1,515,075
11	$2,451,720	−$863,094	$0	$1,588,626
12	$2,574,306	−$908,451	$0	$1,665,856
13	$2,703,021	−$956,075	$0	$1,746,946
14	$2,838,173	−$1,006,081	$0	$1,832,091
15	$2,980,081	−$1,058,587	$0	$1,921,494
16	$3,129,085	−$1,113,719	$0	$2,015,366
17	$3,285,540	−$1,171,607	$0	$2,113,933
18	$3,449,816	−$1,232,389	$0	$2,217,427
19	$3,622,307	−$1,296,211	$0	$2,326,096
20	$3,803,423	−$1,363,224	$0	$2,440,199
21	$3,993,594	−$1,433,587	$0	$2,560,007
22	$4,193,274	−$1,507,468	$0	$2,685,805
23	$4,402,937	−$1,585,044	$0	$2,817,893
24	$4,623,084	−$1,666,498	$0	$2,956,586
25	$4,854,238	−$1,752,025	$0	$3,102,213
26	$5,096,950	−$1,841,829	$0	$3,255,121
27	$5,351,798	−$1,936,122	$0	$3,415,675
28	$5,619,388	−$2,035,131	$0	$3,584,257
29	$5,900,357	−$2,139,089	$0	$3,761,268
30	$6,195,375	−$2,248,246	$0	$3,947,129

Planning Note: Uses 2026 federal brackets and historical state presets unless overridden. Assumes winnings are your only income and excludes deductions, credits and most local taxes. Withholding is not final tax liability. Annuity estimates hold today’s rates constant. Verify current state rules and consult a tax professional before claiming a prize. IRS 2026 Source.

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What Is the Lottery Tax Calculator?

The Lottery Tax Calculator estimates your real take-home from a lottery jackpot. It applies the 24% federal withholding plus the additional federal tax due at the top brackets, and your state's tax on lottery winnings — including the states that don't tax lottery prizes at all (California, Florida, Texas and others). Compare the lump-sum cash option against the 30-year graduated annuity, with a full year-by-year payment breakdown.

How It Works

Enter the advertised jackpot, pick your state and filing status, and adjust the cash-value percentage if the game publishes one. The calculator shows both payout options side by side — what's withheld now, what you'll still owe at tax time, state tax, and what you keep — plus a 30-year annuity table.

When to Use It

Use it when a big jackpot rolls up and you're curious what it's really worth, to compare cash vs. annuity, or to see how much more you'd keep in a no-tax state.

Frequently Asked Questions

Why is the take-home so much less than the jackpot?: Three cuts: the advertised jackpot is an annuity value (the cash option is usually only ~half), federal tax takes up to 37%, and many states take another 3–11% on top.
Which states don't tax lottery winnings?: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming take no state tax on lottery prizes (and a few states have no lottery at all).
Is only 24% taken out?: 24% is withheld immediately, but a large jackpot puts you in the 37% federal bracket — the roughly 13% difference is due when you file your return. This calculator shows both amounts so you're not surprised.
How does the annuity work?: Powerball and Mega Millions pay 30 annual payments that increase 5% each year and add up to the full advertised jackpot. Each payment is taxed in the year you receive it.

Found an issue? Send Feedback. See our data sources and update policy for tools that depend on changing information.