Lottery Tax Calculator

See exactly how much you keep from a lottery jackpot after federal and state taxes. Enter any prize amount or start from tonight's Powerball and Mega Millions jackpots, and compare the lump-sum cash option against the 30-year annuity.

Prize amount

Tonight's jackpots

Or a round amount

Your state

Choosing a state opens its own calculator page.

Payout option

Lump sum taxes the cash option in a single year.

Take-home on a $86,700,000 cash option in California

Gross prize$86,700,000

Federal withholding (24%)−$20,808,000

California state taxNo tax on lottery prizes

Check you receive (after withholding)$65,892,000

You'll likely owe more at tax time

The lottery only withholds 24% for the IRS, but a jackpot pushes you into the top 37% federal bracket. The difference comes due when you file.

Additional federal owed at filing (to 37%)−$11,271,000

Estimated final take-home$54,621,000

California does not tax California Lottery winnings (Revenue & Taxation Code §17045). Out-of-state lottery winnings are taxed as income.

See the full Powerball tax breakdown (annuity and cash option) →See the full Mega Millions tax breakdown (annuity and cash option) →

Lottery tax calculator by state

Pick your state for its exact after-tax take-home — cash option and annuity.

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Frequently Asked Questions

How are lottery winnings taxed in the United States?

Lottery prizes are taxed as ordinary income. The lottery withholds 24% for federal tax on anything over $5,000, but large jackpots are taxed at the top 37% federal bracket, so winners owe the difference at filing. Most states add their own income tax on top, though several charge none.

How much federal tax is withheld from lottery winnings?

24% is withheld up front on winnings over $5,000. Because a jackpot lands in the top 37% bracket, the actual federal tax is higher and the balance is due when you file your return.

Which states do not tax lottery winnings?

These states charge no state tax on lottery prizes: Alaska, California, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Everywhere else, a state tax applies on top of federal; use the calculator above to see your exact take-home by state.

Is the lump sum or the annuity better after taxes?

The cash option (lump sum) is taxed once in the year you claim it; the annuity spreads 30 graduated payments over 29 years, each taxed in its year, which can keep more income in lower brackets. The right choice depends on your tax situation and investment plans; this tool gives estimates, not financial advice.

Estimates only. Federal figures use the mandatory 24% lottery withholding and the top 37% marginal bracket; your actual liability depends on your total income, deductions, and filing status. State figures use each state's top marginal or lottery-specific rate and exclude local taxes. Not tax advice. Annuity payments use the standard MUSL 5% escalation model. Consult a qualified tax professional before claiming a prize.