Estimate your actual take-home pay after federal and state taxes.
Cash Lump Sum (Approx. 60%)
30-Year Annuity (Full Amount)
Top Bracket (37%)
High Income (35%)
Standard Withholding (24%)
Gross Payout:$0.00
Federal Tax (Est):$0.00
State Tax (Est):$0.00
Net Take-Home:$0.00
How Your Lottery Winnings are Calculated
Winning the lottery is a life-changing event, but the "advertised jackpot" is rarely the amount that hits your bank account. There are two primary factors that reduce your winnings: the payout choice and taxes.
Annuity vs. Cash Lump Sum
When you win a major jackpot like Powerball or Mega Millions, you are presented with two choices:
Annuity: The full jackpot amount is paid out over 30 years. Each payment is 5% bigger than the last to account for inflation.
Lump Sum: You receive an immediate one-time payment. This is generally the actual cash the lottery has on hand to fund the prize, typically around 60% of the advertised jackpot.
The Tax Bite: Federal and State
Lottery winnings are considered ordinary taxable income by the IRS. Currently, the IRS requires a mandatory 24% federal withholding for winnings over $5,000. However, because a large jackpot will almost certainly put you in the highest tax bracket (37%), you will likely owe an additional 13% when you file your tax return.
State Tax Variations
Depending on where you purchased the ticket, state taxes can vary significantly:
State
Approx. Tax Rate
California / Florida / Texas / Nevada
0% (No state tax on winnings)
New York
8.82% (Plus NYC local tax if applicable)
New Jersey
8.00%
Maryland
8.95%
Example Calculation
If you win a $100,000,000 jackpot and choose the cash lump sum (estimated at $60,000,000):
Federal Tax (37%): $22,200,000
State Tax (e.g., 5%): $3,000,000
Total Net Take-Home: $34,800,000
function calculateLottery() {
var jackpot = parseFloat(document.getElementById('jackpotAmount').value);
var payoutType = document.getElementById('payoutType').value;
var stateTaxRate = parseFloat(document.getElementById('stateTax').value) / 100;
var fedTaxRate = parseFloat(document.getElementById('fedTaxRate').value);
if (isNaN(jackpot) || jackpot <= 0) {
alert("Please enter a valid jackpot amount.");
return;
}
if (isNaN(stateTaxRate)) stateTaxRate = 0;
var grossPayout = 0;
if (payoutType === 'lump') {
// Typical cash value is roughly 60% of the jackpot
grossPayout = jackpot * 0.60;
} else {
// Annuity is the full amount (though usually split over 30 years)
// For the sake of this calculator, we show the total net of the whole annuity
grossPayout = jackpot;
}
var federalTaxAmount = grossPayout * fedTaxRate;
var stateTaxAmount = grossPayout * stateTaxRate;
var netTakeHome = grossPayout – federalTaxAmount – stateTaxAmount;
// Format currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 0,
maximumFractionDigits: 0
});
document.getElementById('resGross').innerText = formatter.format(grossPayout);
document.getElementById('resFedTax').innerText = "-" + formatter.format(federalTaxAmount);
document.getElementById('resStateTax').innerText = "-" + formatter.format(stateTaxAmount);
document.getElementById('resNet').innerText = formatter.format(netTakeHome);
document.getElementById('lotteryResults').style.display = 'block';
}