# What is a Powerball payout after tax?

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.

- Page: https://www.acalculator.org/finance/lottery-payout-calculator
- JSON spec: https://www.acalculator.org/finance/lottery-payout-calculator.json
- Version: eb4b7479ed32

## Default answer

Example with the default inputs (Advertised jackpot $500,000,000.00, State Florida, Filing status Single): 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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| jackpot | Advertised jackpot | The advertised Powerball or Mega Millions jackpot: the total of the 30 annuity payments. |
| cash | Cash option | The one-time cash value announced with the jackpot, if you want it compared. |
| state | State | The state where you live and bought the ticket. |
| status | Filing status | Your federal filing status. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| annuityNet | Annuity after tax | The 30 payments minus the estimated federal and state tax on each. |
| first | First payment | The first annuity payment before tax, paid now. |
| firstPaid | First check after withholding | The first payment minus what the lottery withholds. |
| last | Last payment | The 30th payment before tax, 29 years from now. |
| totalTax | Tax on the annuity | Estimated federal and state tax on all 30 payments. |
| cashNet | Cash option after tax | The cash option minus its estimated federal and state tax, all in one year. |
| cashPaid | Cash check after withholding | The cash option minus what the lottery withholds. |
| cashRefund | Cash: refund when you file | What was withheld from the cash option minus its tax, when more was withheld. |
| cashDue | Cash: still to pay when you file | Tax on the cash option minus what was withheld. |

## 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.

## Worked examples

1. jackpot = $100,000,000.00, state = FL, status = single gives first = $1,505,143.51, last = $6,195,374.77.
2. jackpot = $100,000,000.00, cash = $45,000,000.00, state = FL, status = mfj gives cashNet = $28,439,749.50, cashPaid = $34,200,000.00, cashDue = $5,760,250.50. Source: IRS W-2G instructions (24% withheld).
3. jackpot = $100,000,000.00, state = AZ, status = single gives firstPaid = $1,106,280.48. Source: Arizona Lottery winner brochure (January 2026): 24% federal and 2.5% state withheld.

## FAQ

### How does the Powerball payout work?

A jackpot winner picks the annuity or the cash option. The annuity is one payment now and 29 yearly payments, each 5% larger than the one before, adding up to the advertised jackpot. The cash option is one smaller payment. Mega Millions pays its annuity the same way.

### How much is withheld from a Powerball payout?

The lottery withholds 24% for federal income tax from any prize over $5,000, plus the state lottery’s withholding (for example 2.5% in Arizona, 4% in Virginia, 7.25% in Minnesota; none in Florida or Texas). Most of a jackpot is taxed at 37% federally, so more is due when you file.

### What is the first annuity payment on a $100 million jackpot?

About $1,505,144 before tax: $100,000,000 × 0.05 ÷ (1.05³⁰ − 1). The last, 29 years later, is about $6,195,375.

### Why does the table show federal tax on each payment separately?

Each annuity payment is income in the year it is paid, so each is taxed on its own. This page uses the 2026 brackets for every year; future brackets will change with inflation and the law.

### What if gambling is a problem?

Lotteries return less than they take in. If gambling is causing problems for you or someone you know, call or text the National Problem Gambling Helpline at 1-800-MY-RESET.

## 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/