Windfall Planning

Lottery Tax Calculator

Calculate exactly how much you'll take home from a Powerball or Mega Millions jackpot after the IRS and your state get their cut.

The Winning Ticket

The Details

The cash option is usually 50-60% of the advertised annuity jackpot.

Some states like FL and TX have 0% state income tax. NY is over 10%.

Total Take-Home Pay

$150,800,000

You are paying $109,200,000 in taxes.

The Math

Advertised Jackpot$500,000,000
Gross Payout Before Taxes$260,000,000
Mandatory Fed Withholding (24%)-$62,400,000
Remaining Fed Taxes (to 37%)-$33,800,000
State Taxes (5%)-$13,000,000
Total Taxes Owed-$109,200,000

Note on Federal Taxes: The lottery commission only withholds 24% for federal taxes. However, because a multi-million dollar jackpot puts you firmly in the top 37% tax bracket, you will owe the remaining 13% when you file your taxes the following April. This calculator accounts for the full 37%.

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