Lottery Tax Calculator — Lump Sum vs Annuity After Taxes

Won the Powerball or Mega Millions? See your real take-home after federal & state tax — and whether the lump sum or the 30-year annuity leaves you with more. ✓ 2026 tax

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Lottery Tax

Lump sum vs annuity • After tax

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Enter a jackpot to see your take-home

How the Lottery Tax Calculator Works

  1. Enter the advertised jackpot and the cash-option percentage (~50% is typical).
  2. Pick your state tax rate — 0% in many states, up to ~11% in NY/CA.
  3. Compare the after-tax lump sum vs the 30-year annuity.

How Much Is a Lottery Jackpot After Taxes?

The advertised jackpot is the annuity total paid over 30 years. Most winners take the lump sum (cash value), usually about half the headline number. Either way, the IRS withholds 24% up front, but big wins land in the top 37% federal bracket, and your state may add up to ~11% (or 0% in Texas, Florida, Washington, Tennessee and other no-income-tax states).

A subtle point this calculator shows: the annuity is often taxed less overall, because spreading the income across 30 years keeps more of it out of the top bracket — but the lump sum lets you invest immediately. There's no single right answer; this is an estimate, not tax or financial advice.

Lottery Tax FAQ

The IRS withholds 24% immediately, but large jackpots are taxed at the top 37% federal rate when you file. State tax adds 0% (no-income-tax states) up to about 11% in New York or California.
The annuity usually pays more after tax (income is spread over 30 years, keeping more out of the top bracket) and protects against overspending. The lump sum gives you the full amount now to invest. It depends on your discipline and expected returns.
The cash (lump-sum) option is the present value of the annuity — typically around 50% of the advertised jackpot — paid in one payment, before taxes.

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✔ Reviewed by the True Value Calc editorial team🗓 Last updated June 2026📚 Sources: IRS.gov, U.S. Bureau of Labor Statistics