Introduction
Winning the lottery is exciting, but the amount you take home is never the full jackpot. Federal taxes and state taxes take a big chunk out of your prize before you ever see the money. How much you actually get depends on where you bought your ticket, which game you played, and whether you pick the lump sum or the annuity option.
This lottery payout calculator helps you figure out your net winnings after taxes. It covers major jackpot games like Powerball and Mega Millions, secondary games like Lucky For Life, and daily Pick 3, Pick 4, and Pick 5 games. Enter your jackpot amount, choose your state, and the calculator does the rest. It shows you a full breakdown of federal and state tax withholdings, compares the lump sum payout to the annuity option, and gives you a year-by-year schedule of annuity payments. You can also compare net payouts across different states side by side.
All results are estimates based on standard withholding rates. Your actual tax bill may differ depending on your total income, filing status, and any deductions you claim. Use this tool to get a clear picture of what a lottery win is really worth after taxes.
How to Use Our Lottery Payout Calculator
Enter your lottery game details and ticket info below. The calculator will show you how much money you take home after federal and state taxes for both the lump sum and annuity options.
Choose a game category by clicking one of the three tabs at the top: Major Jackpot (Powerball or Mega Millions), Secondary Jackpot (Lucky For Life or Millionaire For Life), or Pick Games (Pick 3, Pick 4, or Pick 5).
Select your game by clicking the button that matches the lottery game you played.
Enter the advertised jackpot amount in the dollar field. Use the jackpot number shown on the official lottery website or your local retailer.
Pick the state where you bought your ticket from the dropdown menu. Tax is based on the purchase state, not where you live. If you pick New York, a second dropdown appears so you can choose Standard New York, New York City, or Yonkers.
Choose your federal tax method. Select "Flat Withholding (24%)" for the standard rate the lottery withholds, or select "Custom Rate" and type in a different percentage if you want to estimate a higher effective rate like 37%. You can estimate that rate from your income with our Effective Tax Rate Calculator.
Turn on the multiplier toggle if you bought Power Play (Powerball) or Megaplier (Mega Millions). Then pick the multiplier number from the dropdown. This only changes the prize tier table, not the jackpot.
Open Advanced Annuity Settings if you want to change the number of annual payments or the yearly payout increase rate. The defaults are 30 payments with a 5% annual increase, which match the Mega Millions rules.4
For Pick Games, choose your draw session (Midday or Evening), select your bet type from the dropdown, and pick the state where you bought your ticket. The calculator will instantly show your fixed payout minus any taxes.
Click "Calculate" to see your results, or click "Reset" to clear all fields and start over.
Review your results in the panels below the button. You will see a side-by-side comparison of lump sum versus annuity payouts, a year-by-year breakdown table, a cumulative net chart, step-by-step math, and a state comparison tool that lets you compare tax outcomes across up to three states.
How Lottery Payouts Work
When you win the lottery, you don't take home the full jackpot amount. The advertised jackpot is the total you would receive if you chose the annuity option. For Powerball that is 30 graduated payments over 29 years.13 For Mega Millions it is one immediate payment followed by 29 annual payments, each 5% bigger than the previous one.4 If you choose the lump sum (also called the cash option), you get a smaller amount up front, usually around 40% to 50% of the advertised jackpot.
Either way, taxes reduce your payout further. The federal government withholds 24% from all lottery winnings over $5,000.1 Depending on the size of your prize, you may owe more at tax time since the top federal tax rate is 37%.3 Most states also charge their own income tax on lottery winnings, and both federal and state withholdings on your prize are broken out in our Lottery Tax Calculator. Some states, such as Florida and Texas, have no state income tax.7 California does not tax winnings from the California Lottery.8
Lump Sum vs. Annuity
Choosing between a lump sum and annuity is one of the biggest decisions a lottery winner makes. The lump sum gives you all your money right away, but the total is much smaller. The annuity pays out more money over time, but you have to wait years to collect it all. Many winners pick the lump sum because they want full control of their money immediately. Others prefer the annuity because it provides steady income and can result in more total dollars after taxes.
How State Taxes Affect Your Winnings
Where you buy your ticket matters. State tax rates on lottery winnings range from 0% to over 10%.7 For example, New York withholds at its highest income tax rate on larger prizes,9 and New York City residents pay an extra local tax on top of that.10 States like Florida, Tennessee, Texas, Washington, and Wyoming have no state income tax on lottery prizes.7 This means the same jackpot can pay out thousands, or even millions, more in one state compared to another.
Pick Games
Pick 3, Pick 4, and Pick 5 are daily lottery games with fixed payouts. Unlike Powerball or Mega Millions, the prize amounts are set and do not change. The payout depends on the bet type you choose, such as Straight, Box, or Combo. Straight bets pay the most because they are the hardest to win. Federal tax is withheld only if the prize is more than $5,000.1