Payout Lottery Calculator

Lottery Payout & Tax Calculator

Typically 55% to 65% of jackpot

Top bracket is 37%

Enter your state's rate (0-13%)

Your Payout Estimation

Gross Cash Option (Lump Sum):

Federal Tax Withholding:

State Tax Withholding:

Final Take-Home (Lump Sum):

Annuity Option (30 Payments)

If you choose the annuity, you receive the full jackpot amount spread over 30 years. On average, your annual take-home after taxes would be approximately:

How the Lottery Payout Calculator Works

Winning the lottery is a life-changing event, but the number you see on the billboard is rarely the number that ends up in your bank account. This calculator helps you navigate the two most significant hurdles between you and your millions: the Cash Option discount and Tax Obligations.

Lump Sum vs. Annuity

When you win a major lottery like Powerball or Mega Millions, you are presented with two choices:

• Lump Sum (Cash Option): You receive a one-time payment immediately. This amount is the actual cash currently held in the prize pool. Because the "Advertised Jackpot" includes 30 years of expected interest earnings, the Cash Option is significantly lower (often around 60% of the jackpot).
• Annuity: The lottery invests the cash and pays it out to you in 30 graduated installments over 29 years. The total of these payments will equal the full advertised jackpot.

The Impact of Taxes

Lottery winnings are considered ordinary income by the IRS. This means they are taxed at the highest federal bracket. While the lottery office will automatically withhold a portion (usually 24%) for federal taxes, your total liability will likely be 37% when you file your return. Additionally, most states levy their own tax on winnings, ranging from 0% (like in Florida or Texas) to over 10% (like in New York).

Realistic Example

Imagine you win a $100,000,000 jackpot:

1. Cash Option: Usually drops to approximately $62,000,000.
2. Federal Tax (37%): $22,940,000 is taken by the IRS.
3. State Tax (e.g., 5%): $3,100,000 goes to your state.
4. Final Take-Home: You walk away with roughly $35,960,000.

While $35 million is a far cry from $100 million, it is still a massive windfall. Using this calculator allows you to plan for the reality of your winnings and understand exactly what will land in your pocket after Uncle Sam takes his share.