How much will you actually take home?
Estimate your net payout after federal and state taxes for Powerball, Mega Millions, and other US lotteries.
Enter Prize Details
Filing Status
For federal tax brackets
Payout Type
Lump sum vs Annuity
Prize Type
Jackpot vs Scratch-off
Estimated Payout
Federal Tax Breakdown
1. Immediate Withholding (24%)
Lottery agencies are required by law to withhold $12,000,000 immediately for prizes over $5,000. This is an advance payment to the IRS, not your final tax bill.
2. Final Tax Liability (Progressive)
Your actual tax is determined by progressive tax brackets. For large winnings, you will likely fall into the top 37% bracket. We estimate your total federal tax to be $18,458,188.
*Since your withholding is less than your estimated liability, you may need to pay an additional $6,458,188 when you file your returns.
State Tax Details: Select a State
Select a state from the form to see specific tax rules and notes.
How Lottery Taxes Work
The Lump Sum Reduction
Advertised jackpots are based on a 30-year annuity. If you choose the cash lump sum, the prize is typically reduced by about 50% before any taxes are applied.
Federal Taxes
The IRS automatically withholds 24% for winnings over $5,000. However, large prizes push you into the top tax bracket, meaning you'll owe up to 37% total at tax time.
State Taxes
State taxes vary wildly. Some states like California and Florida charge 0% on lottery winnings, while others like New York take over 10%.
Calculate Taxes by State
Frequently Asked Questions
Do I have to pay taxes on lottery winnings?
Yes. The IRS considers lottery winnings as ordinary taxable income. You must report all winnings on your federal tax return, and most states also tax lottery prizes.
Why is the lump sum so much smaller than the jackpot?
The advertised jackpot is the total amount paid out over 30 years (an annuity). The lump sum is the actual cash value the lottery has on hand right now to invest to reach that 30-year total. It is usually about half the advertised amount.
Which states have no lottery tax?
California, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not tax lottery winnings. Alaska and Hawaii do not have state lotteries.