Powerball Payout Calculator
Compare lump-sum vs. annuity payouts after taxes
Estimate using 2026 federal tax brackets and the cash-value percentage you enter. Check the official cash value for your drawing.
Frequently Asked Questions
Powerball lump sum payout calculation
The lump sum is calculated in three steps: advertised jackpot x cash-value percentage = cash option, then subtract federal income tax (24% is withheld when you claim, and the rest of the 37% top rate is due when you file), then subtract state tax. For a $500 million jackpot with a 45% cash value, the winner receives $225 million before tax, about $141.8 million after federal tax in a no-tax state such as Florida or Texas, and about $117.3 million in New York State.
Lump sum versus annuity
The advertised Powerball or Mega Millions jackpot is the total of a 30-payment annuity, not the money available today. Winners choose between:
- Cash option (lump sum): the current cash value of the prize pool. In recent drawings it has been about 41% to 47% of the advertised jackpot depending on interest rates (for example, a $467 million jackpot in October 2026 had a $192 million cash value, 41%). Enter the cash value announced for your drawing.
- Annuity: one immediate payment followed by 29 annual payments, each 5% larger than the previous one.
How taxes are estimated
Lottery winnings are ordinary income. The lottery withholds 24% for federal tax on prizes over $5,000, but a jackpot lands almost entirely in the top 37% bracket, which in 2026 starts at $640,600 for single filers and $768,700 for married couples filing jointly. The calculator runs the full 2026 bracket schedule after the standard deduction ($16,100 single, $32,200 joint), so the effective federal rate on a large jackpot comes out just under 37%. Each annuity payment is taxed in the year it is paid.
After-tax payout by jackpot size
Single filer, 45% cash value, federal tax only (add your state rate):
| Advertised jackpot | Cash value (45%) | Lump sum after federal tax | Annuity year 1 after tax |
|---|---|---|---|
| $100 million | $45 million | about $28.4 million | about $1.0 million |
| $500 million | $225 million | about $141.8 million | about $4.79 million |
| $1 billion | $450 million | about $283.5 million | about $9.54 million |
State tax on lottery winnings (2026)
| State | Rate used | Tax on a $225 million cash prize |
|---|---|---|
| CA, FL, NH, SD, TN, TX, WA, WY | 0% | $0 |
| Arizona, North Dakota | 2.5% | $5.6 million |
| Ohio | 2.75% | $6.2 million |
| Pennsylvania | 3.07% | $6.9 million |
| North Carolina | 3.99% | $9.0 million |
| Illinois | 4.95% | $11.1 million |
| Massachusetts | about 9% (5% + 4% surtax) | about $20.2 million |
| New Jersey, DC | 10.75% | $24.2 million |
| New York State | 10.9% | $24.5 million |
| New York City resident | 10.9% + 3.876% | $33.2 million |
Rates are top marginal state rates; several states withhold a different amount up front and settle the difference on your return. If you buy a ticket in another state, that state may tax the prize and your home state usually gives a credit.
Powerball annuity payment schedule
The annuity pays 30 graduated installments: the first right away, then one a year for 29 years, each 5% larger than the last. For an advertised $500 million jackpot (single filer, federal tax only):
| Payment | Before tax | After federal tax |
|---|---|---|
| Year 1 | $7.53 million | $4.79 million |
| Year 5 | $9.15 million | $5.81 million |
| Year 10 | $11.67 million | $7.41 million |
| Year 15 | $14.90 million | $9.44 million |
| Year 20 | $19.02 million | $12.03 million |
| Year 25 | $24.27 million | $15.34 million |
| Year 30 | $30.98 million | $19.57 million |
The first payment is about 1.5% of the advertised jackpot, and the 30 payments total about $316.5 million after federal tax. If the winner dies before all payments are made, the remaining installments go to their estate.
Which option is better?
On a $500 million jackpot the lump sum leaves about $141.8 million today and the annuity about $316.5 million over 29 years. The calculator finds the break-even return: in this case the lump sum must earn about 5.1% a year after tax to match the annuity. Stock-heavy portfolios have beaten that over long periods but with real risk; the annuity guarantees the money and protects against overspending, while the lump sum gives control and lets heirs inherit the full amount. The compound interest calculator shows how the cash might grow, and the annuity calculator lets you compare other payout structures.
Non-jackpot Powerball prizes
| Match | Prize |
|---|---|
| 5 white balls + Powerball | jackpot |
| 5 white balls | $1,000,000 |
| 4 + Powerball | $50,000 |
| 4, or 3 + Powerball | $100 |
| 3, or 2 + Powerball | $7 |
| 1 + Powerball, or Powerball only | $4 |
Power Play multiplies non-jackpot prizes by 2 to 10 (the $1 million prize becomes $2 million). Prizes over $5,000 have 24% federal tax withheld, and prizes of $600 or more are reported to the IRS.
Figures are estimates: actual withholding, state rules for non-residents and deductions vary. Lotteries are games of chance with very low odds of winning a jackpot, so play only with money you can afford to lose. To compare the chances of different bets, see the odds calculator or the expected value calculator.