Pick the game, the state where the ticket was bought and the jackpot size, and this calculator shows the three numbers that matter: the cash value, the federal tax, and what is actually left — including the gap between the 24% withheld at payout and the 37% you owe at filing.
Calculate your take-home
What this calculator actually does
Most lottery calculators subtract a flat 24% and stop. That number is wrong twice over: it ignores the 37% bracket and it ignores the state. This one applies the 2026 federal brackets progressively, adds the top marginal rate of the state you select, and treats the 24% as what it is — a down payment that gets reconciled on your return.
| Line | No state tax | New York |
|---|---|---|
| Advertised jackpot | $687,000,000 | $687,000,000 |
| Cash value (43%) | $294,700,000 | $294,700,000 |
| Federal tax, 37% bracket | −$108,997,510 | −$108,997,510 |
| State tax | $0 | −$32,124,807 |
| Take-home | $185,725,490 | $153,600,683 |
Single filer, standard deduction, no other income, one winner. Assumptions and limits are set out on the methodology page.
Lottery tax rates by state
Thirty-seven of the 46 Powerball jurisdictions tax a jackpot. Nine take nothing: California, Florida, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wyoming. California and Pennsylvania do it by exempting their own lottery prizes despite levying an income tax; the rest simply have no income tax.
At the other end, New York 10.9%, New Jersey 10.75%, Oregon 9.9%, Minnesota 9.85%, Massachusetts 9%. On the current jackpot that is the difference between $185.7M and $153.6M in your pocket.
Lump sum or annuity
The calculator defaults to the lump sum because that is what most winners take. Switch the payout dropdown to see the annuity: 30 payments, each 5% larger than the last, taxed as they arrive. The annuity pays more in total but takes 29 years, and every payment is exposed to whatever tax law exists then.
For the comparison with real numbers, see lump sum vs annuity and the 30-payment chart.
Three mistakes this tool is built to prevent
- Spending the first cheque. The 24% withheld is not the bill. The remaining 13 points are due at filing, and on a jackpot that is tens of millions.
- Using the wrong state. The state of purchase withholds; the state of residence taxes. They are not always the same, and a credit rarely covers the full difference.
- Assuming a fixed cash ratio. The cash value has run 41%–46% of the advertised jackpot in 2026. Any calculator quoting a flat 50% is working from an older rate environment.
Related calculators
- Powerball cash prize after taxesThe main calculator, with the full 46-state table
- Powerball cash payout todayLive cash value and what changed at the last draw
- Mega Millions after taxesSame maths, different game
- Federal tax on lottery winningsForms, safe harbour, why a trust rarely helps
Questions
How much tax do you pay on lottery winnings?
Two layers. The IRS withholds 24% from any prize over $5,000, but a jackpot lands in the 37% bracket, so another 13 points are due at filing. Then the state where the ticket was bought applies its own rate, from 0% in Florida or Texas to 10.9% in New York. On today's $687M Powerball jackpot that leaves about $185.7M in a no-tax state.
Is the 24% withholding my final tax?
No. It is a prepayment. On the current jackpot the withheld amount is $70,733,520 against a federal bill of $108,997,510, so roughly $38,263,990 is still owed when you file. That gap is the single most common way winners get caught short.
Which state should I choose in the calculator?
The state where the ticket was bought, not where you live. That state withholds first. Your home state then taxes the income and usually credits what the other state took, so a second calculation for your home state is worth running if the two differ.
Does the calculator work for Mega Millions too?
Yes. Both games are ordinary income under the same federal rules; only the jackpot and cash value differ. Switch games with the tabs above the jackpot, or use the Mega Millions after-tax page for the game-specific breakdown.
Why is the cash value so much lower than the jackpot?
The headline is 30 payments over 29 years, each 5% larger than the last. The cash value is what has to be in the prize pool today to fund them. Right now that ratio is about 43%; it moves with interest rates and is recalculated at every draw.