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.
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.
Lump Sum (Cash Option)
One payment today of the cash value.
Annuity (30 Yearly Payments)
Payments rise 5% each year and total the full jackpot.
| Year | Gross Payment | Federal Tax | State Tax | Net Payment |
|---|---|---|---|---|
| 1 | $1,505,144 | −$513,923 | $0 | $991,220 |
| 2 | $1,580,401 | −$541,769 | $0 | $1,038,632 |
| 3 | $1,659,421 | −$571,006 | $0 | $1,088,415 |
| 4 | $1,742,392 | −$601,705 | $0 | $1,140,687 |
| 5 | $1,829,511 | −$633,939 | $0 | $1,195,572 |
| 6 | $1,920,987 | −$667,785 | $0 | $1,253,202 |
| 7 | $2,017,036 | −$703,324 | $0 | $1,313,713 |
| 8 | $2,117,888 | −$740,639 | $0 | $1,377,249 |
| 9 | $2,223,782 | −$779,820 | $0 | $1,443,963 |
| 10 | $2,334,972 | −$820,960 | $0 | $1,514,012 |
| 11 | $2,451,720 | −$864,157 | $0 | $1,587,563 |
| 12 | $2,574,306 | −$909,514 | $0 | $1,664,793 |
| 13 | $2,703,021 | −$957,138 | $0 | $1,745,883 |
| 14 | $2,838,173 | −$1,007,144 | $0 | $1,831,028 |
| 15 | $2,980,081 | −$1,059,650 | $0 | $1,920,431 |
| 16 | $3,129,085 | −$1,114,782 | $0 | $2,014,303 |
| 17 | $3,285,540 | −$1,172,670 | $0 | $2,112,870 |
| 18 | $3,449,816 | −$1,233,452 | $0 | $2,216,364 |
| 19 | $3,622,307 | −$1,297,274 | $0 | $2,325,033 |
| 20 | $3,803,423 | −$1,364,287 | $0 | $2,439,136 |
| 21 | $3,993,594 | −$1,434,650 | $0 | $2,558,944 |
| 22 | $4,193,274 | −$1,508,531 | $0 | $2,684,742 |
| 23 | $4,402,937 | −$1,586,107 | $0 | $2,816,830 |
| 24 | $4,623,084 | −$1,667,561 | $0 | $2,955,523 |
| 25 | $4,854,238 | −$1,753,088 | $0 | $3,101,150 |
| 26 | $5,096,950 | −$1,842,892 | $0 | $3,254,058 |
| 27 | $5,351,798 | −$1,937,185 | $0 | $3,414,612 |
| 28 | $5,619,388 | −$2,036,194 | $0 | $3,583,194 |
| 29 | $5,900,357 | −$2,140,152 | $0 | $3,760,205 |
| 30 | $6,195,375 | −$2,249,309 | $0 | $3,946,066 |
DISCLAIMER: Estimates only, using 2025 federal brackets and approximate state rates on large prizes. Assumes the winnings are your only income and ignores deductions, credits, other local taxes (e.g. Yonkers, Maryland county tax) and future bracket changes. The IRS withholds 24% up front, but large prizes are ultimately taxed at up to 37% — the difference is due when you file. This is not tax or financial advice; consult a professional before claiming a prize.
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.
Last reviewed: 2026-06-27