Did you know there's cash option on scratch-offs? A $1 million scratch-off win can be worth only $500,000 before taxes
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A lot of scratch-off players I spoke with don't seem to know about this. The $1,000,000 on the front of the ticket is, on many games the annuity number or the total of twenty to thirty yearly checks. If you want it all at once, the lottery offers a cash option, and that number is lower. In some states it is about half of the headline prize.
This is not every game, and nobody publishes a full count. We have 93 games on file where the lottery prints the annuity terms in its own game listing. Georgia's GRANT lists a $3,000,000 top prize and nothing else, and the lower cash option figure is closer to $1.5 million. Massachusetts and North Carolina work the same way. In New York, Ohio, Virginia, Illinois, North Carolina, and several other states, the biggest prizes on the shelf are all annuities, and the ticket does not say so on the front.
Four claims from the past two months
| Winner | Printed prize | Annuity | Cash option | Cash as % of printed |
|---|---|---|---|---|
| North Carolina, 20 Years | $1,000,000 | $50,000 a year for 20 years | $600,000 | 60% |
| Georgia, GRANT | $3,000,000 | Paid over time | $1,546,986 | 52% |
| Massachusetts, Magnificent Millions | $15,000,000 | Paid over time | $9,750,000 | 65% |
| Georgia, GRANT (July) | $3,000,000 | Paid over time | $1,546,986 | 52% |
All four winners in the table above took the cash option. The North Carolina winner's $1 million became $600,000 before taxes. The Massachusetts winner's $15 million became $9.75 million before taxes.
Federal withholding and state tax always comes off the cash figure, around 24% for federal withholding and whatever the state's tax rate is and it is only a down payment. A prize over roughly $600,000 lands in the top 37% federal bracket, so the final bill would likely include an additional 13% federal tax next April. You can run the numbers on our lottery tax calculator.
What the cash option is in each state
The ratio is set by the state, and it varies more than most players expect. According to the prize structures each lottery publishes for its own games, these are the cash options on a $1,000,000 scratch-off top prize where the state lottery lists one.
| State | $1,000,000 printed prize is paid as | Cash option |
|---|---|---|
| Virginia | $33,333 a year for 30 years | $476,000 to $500,000 |
| North Carolina | $50,000 a year for 20 years | $600,000 |
| Illinois | $50,000 a year for 20 years | $600,000 |
| New Hampshire | Annuity | $700,000 |
| Rhode Island | Annuity | $700,000 to $750,000 |
| New York | $50,000 a year for 20 years | Not listed |
| Ohio | $40,000 a year for 25 years | Not listed |
Virginia is the low end. Its $2,000,000 Platinum 7s prize has a cash option of $952,000, which is 48%. New York and Ohio publish the yearly payment and no cash figure at all.
The games where the lottery states the terms up front are listed here, and the real number is larger, and whether to take the cash or the payments is a separate question you have to ask yourself.
None of this makes an annuity prize a bad prize. $50,000 a year for 20 years is $50,000 a year for 20 years, and some winners prefer it. Especially ones who don't trust themselves with self-control.
Before you buy, open the game on the lottery's website and read the top line of the prize table. If it says "a year for," the number on the front is not the number you would get.
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Frequently Asked Questions
Is a $1 million scratch-off prize really $1 million?
Sometimes, and sometimes not. On many games with a top prize of $1 million or more, the printed figure is the total of yearly payments over 20 to 30 years. A winner who wants the money now takes a cash option instead, and that runs from about 48% to 75% of the printed number depending on the state. On some games the $1 million is a single cash prize, and the ticket does not tell you which kind you are holding. Some lotteries print the annuity terms in the game listing; others, such as Georgia and Massachusetts, show only the headline figure and the cash option appears when a winner claims. The prize page on the state lottery site is the place to check, and if it lists a cash option the printed number is the annuity.
How much cash do you get from a $1 million scratch-off annuity prize?
It depends on the state. In North Carolina a $1 million prize on the 20 Years game is $50,000 a year for 20 years or $600,000 cash. Illinois pays $600,000 cash on Millionaire Club. New Hampshire pays $700,000, Rhode Island $700,000 to $750,000, and Virginia $476,000 to $500,000. After withholding, the North Carolina winner in September 2026 left with $432,066.
How can I tell if a scratch-off top prize is an annuity?
Look at the prize table on the lottery’s page for the game, not the front of the ticket. Wording such as "paid as an annuity," "$50,000 a year for 20 years," "cash option," or "guaranteed minimum" means the printed figure is a payment total. Game names with "Years," "For Life," or "Set for Life" in them are almost always paid over time.
Jessie Jurado is a news writer who covers new scratch-off launches, state lottery guides, taxes on winnings, news, and much more. She joined ScratchCheck in 2026 and writes the site's state-by-state coverage.
