{
  "id": "lottery-payout",
  "version": "eb4b7479ed32",
  "status": "published",
  "name": "Lottery Payout Calculator",
  "question": "What is a Powerball payout after tax?",
  "summary": "Shows a Powerball or Mega Millions jackpot payout in your state: each of the 30 annuity payments and the cash option, with what the lottery withholds and the 2026 federal and state tax.",
  "category": "finance",
  "subcategory": "tax-and-pay",
  "url": "https://www.acalculator.org/finance/lottery-payout-calculator",
  "markdown": "https://www.acalculator.org/finance/lottery-payout-calculator.md",
  "kind": "schedule",
  "method": "Payment k = J × 0.05 ÷ (1.05³⁰ − 1) × 1.05^(k − 1); federal tax = 2026 tax on the payment alone; state tax = payment × state top rate; withheld = 24% over $5,000 + state lottery withholding.",
  "assumptions": [
    "Powerball and Mega Millions annuities: one payment now and 29 yearly payments, each 5% larger, adding up to the advertised jackpot.",
    "Each payment is your only income that year, taxed at the 2026 federal brackets and standard deduction in every year; later brackets will change.",
    "State tax uses the state’s top income tax rate (0 where the state does not tax lottery prizes; California does not tax California Lottery prizes). Local taxes are not included.",
    "Withholding is 24% federal on prizes over $5,000 plus the state lottery’s rate where an official source confirms it (read 2026-09-29); the tax due can be more or less.",
    "Estimates only, not tax or financial advice. If gambling is causing problems for you or someone you know, call or text 1-800-MY-RESET."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "jackpot": {
        "title": "Advertised jackpot",
        "description": "The advertised Powerball or Mega Millions jackpot: the total of the 30 annuity payments.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1,
        "maximum": 100000000000
      },
      "cash": {
        "title": "Cash option",
        "description": "The one-time cash value announced with the jackpot, if you want it compared.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1,
        "maximum": 100000000000
      },
      "state": {
        "title": "State",
        "description": "The state where you live and bought the ticket.",
        "type": "string",
        "enum": [
          "AL",
          "AK",
          "AZ",
          "AR",
          "CA",
          "CO",
          "CT",
          "DE",
          "DC",
          "FL",
          "GA",
          "HI",
          "ID",
          "IL",
          "IN",
          "IA",
          "KS",
          "KY",
          "LA",
          "ME",
          "MD",
          "MA",
          "MI",
          "MN",
          "MS",
          "MO",
          "MT",
          "NE",
          "NV",
          "NH",
          "NJ",
          "NM",
          "NY",
          "NC",
          "ND",
          "OH",
          "OK",
          "OR",
          "PA",
          "RI",
          "SC",
          "SD",
          "TN",
          "TX",
          "UT",
          "VT",
          "VA",
          "WA",
          "WV",
          "WI",
          "WY"
        ]
      },
      "status": {
        "title": "Filing status",
        "description": "Your federal filing status.",
        "type": "string",
        "enum": [
          "single",
          "mfj",
          "hoh",
          "mfs"
        ]
      }
    }
  },
  "outputs": {
    "annuityNet": {
      "label": "Annuity after tax",
      "description": "The 30 payments minus the estimated federal and state tax on each.",
      "format": "money"
    },
    "first": {
      "label": "First payment",
      "description": "The first annuity payment before tax, paid now.",
      "format": "money"
    },
    "firstPaid": {
      "label": "First check after withholding",
      "description": "The first payment minus what the lottery withholds.",
      "format": "money"
    },
    "last": {
      "label": "Last payment",
      "description": "The 30th payment before tax, 29 years from now.",
      "format": "money"
    },
    "totalTax": {
      "label": "Tax on the annuity",
      "description": "Estimated federal and state tax on all 30 payments.",
      "format": "money"
    },
    "cashNet": {
      "label": "Cash option after tax",
      "description": "The cash option minus its estimated federal and state tax, all in one year.",
      "format": "money"
    },
    "cashPaid": {
      "label": "Cash check after withholding",
      "description": "The cash option minus what the lottery withholds.",
      "format": "money"
    },
    "cashRefund": {
      "label": "Cash: refund when you file",
      "description": "What was withheld from the cash option minus its tax, when more was withheld.",
      "format": "money"
    },
    "cashDue": {
      "label": "Cash: still to pay when you file",
      "description": "Tax on the cash option minus what was withheld.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "jackpot": 500000000,
      "state": "FL",
      "status": "single"
    },
    "outputs": {
      "annuityNet": 316499992.50000036,
      "first": 7525717.540138293,
      "firstPaid": 5719545.330505103,
      "last": 30976873.8477508,
      "totalTax": 183500007.50000018
    },
    "text": "A $500,000,000.00 jackpot in Florida pays $7,525,717.54 now before tax, and $316,499,992.50 in total after tax as an annuity."
  },
  "examples": [
    {
      "given": {
        "jackpot": 100000000,
        "state": "FL",
        "status": "single"
      },
      "expect": {
        "first": 1505143.508027656,
        "last": 6195374.7695501475
      },
      "source": "Powerball FAQs (one payment now, 29 more, each 5% larger); hand calculation in content.mdx: 100,000,000 × 0.05 ÷ (1.05³⁰ − 1); last = first × 1.05²⁹"
    },
    {
      "given": {
        "jackpot": 100000000,
        "cash": 45000000,
        "state": "FL",
        "status": "mfj"
      },
      "expect": {
        "cashNet": 28439749.5,
        "cashPaid": 34200000,
        "cashDue": 5760250.5
      },
      "source": "IRS W-2G instructions (24% withheld); 2026 joint brackets: federal tax on 45,000,000 is 16,560,250.50; Florida has no income tax; hand calculation in content.mdx"
    },
    {
      "given": {
        "jackpot": 100000000,
        "state": "AZ",
        "status": "single"
      },
      "expect": {
        "firstPaid": 1106280.4784003273
      },
      "source": "Arizona Lottery winner brochure (January 2026): 24% federal and 2.5% state withheld; hand calculation in content.mdx: 1,505,143.51 × (1 − 0.265)"
    }
  ],
  "sources": [
    "Powerball, FAQs (one immediate payment followed by 29 annual payments that increase by 5% each year): https://www.powerball.com/faqs",
    "Mega Millions, How to play (annuity and cash option): https://www.megamillions.com/How-to-Play.aspx",
    "Internal Revenue Service, Instructions for Forms W-2G and 5754 (24% withholding over $5,000): https://www.irs.gov/instructions/iw2g",
    "Internal Revenue Service, Rev. Proc. 2025-32 (2026 brackets and standard deduction): https://www.irs.gov/irb/2025-45_IRB",
    "Arizona Lottery, winner brochure (January 2026): 24% federal and 2.5% state withholding: https://www.arizonalottery.com/media/5xunfjmy/azl-winner-brochure-updated-january-2026docx-google-docs.pdf",
    "National Council on Problem Gambling, help and treatment (1-800-MY-RESET): https://www.ncpgambling.org/help-treatment/"
  ],
  "related": [
    "lottery",
    "lottery-tax",
    "lottery-annuity"
  ],
  "changelog": [
    {
      "date": "2026-09-30",
      "note": "The answer says the first payment is before tax; the table numbers its payments with #."
    }
  ]
}