What we calculate
For any prize, the calculator estimates two things: what the lottery withholds when you claim, and the tax you would finally owe for the year. They are different, and confusing them is the most common mistake in lottery tax estimates.
Withholding when you claim
Federal: 24% of the winnings minus the ticket price, when that amount is over $5,000 (IRS Instructions for Form W-2G). State: the rate each state lottery or tax agency publishes, applied to the same base. Where we could not confirm a state's rate on an official page, we say so instead of guessing.
Tax you finally owe
Federal tax is figured with the 2026 brackets and standard deduction for your filing status (IRS Rev. Proc. 2025-32). We treat the prize as extra income on top of any other income you enter: tax on (other income + prize) minus tax on other income alone. State tax uses the same approach with each state's 2026 brackets. New York City uses the city rate schedule; Yonkers adds 16.75% of New York State tax.
Annuity
Both Powerball and Mega Millions pay 30 payments over 29 years, each 5% larger than the last (Powerball, Mega Millions). The first payment is the jackpot × 0.05 ÷ (1.0530 − 1). Each payment is taxed as income in its own year. “Today's money” discounts each after-tax payment at the rate you choose (4% by default).
Checked against official payouts
Some state lotteries publish exactly how much a winner took home after withholding. We recalculate each one. Every case matches to within $1, or to the rounding of the press release where it gives a rounded figure (marked ≈). Most cases come from North Carolina because the North Carolina Education Lottery reports the take-home amount in its winner announcements; few other states do.
| Where and when | Game | Prize | Official take-home | Our result | Source |
|---|---|---|---|---|---|
| NC · 2026-01-22 | Powerball (lump sum of a $209.3 million jackpot) | $95,300,000 | ≈ $68,600,000 | $68,625,531 | press release |
| NC · 2026-03-19 | Powerball | $2,000,000 | $1,440,201 | $1,440,201 | press release |
| NC · 2026-08-18 | Powerball | $1,000,000 | $720,101 | $720,101 | press release |
| NC · 2026-02-25 | Powerball | $1,000,000 | $720,101 | $720,101 | press release |
| NC · 2026-08-14 | Powerball | $1,000,000 | $720,100 | $720,101 | press release |
| NC · 2026-01-12 | Powerball | $150,000 | $108,016 | $108,016 | press release |
| NC · 2026-05-20 | Powerball | $100,000 | $72,011 | $72,011 | press release |
| NC · 2026-06-25 | Powerball | $100,000 | $72,011 | $72,011 | press release |
| NC · 2026-07-27 | Powerball | $100,000 | $72,011 | $72,011 | press release |
| NC · 2026-03-03 | Mega Millions | $100,000 | $72,011 | $72,011 | press release |
| LA · 2017 | Powerball (cash value of a $191.1 million jackpot (2017)) | $119,492,685 | $83,644,879 | $83,644,880 | press release |
These are withholding checks, using the rates in force when each prize was claimed: 24% federal plus North Carolina's 3.99% in 2026; 25% federal plus Louisiana's 5% in 2017. The 2017 case predates the 2018 cut in federal withholding from 25% to 24%.
Sources
- Federal brackets and standard deduction: IRS Rev. Proc. 2025-32 and the IRS 2026 inflation adjustments
- Federal withholding: IRS Instructions for Forms W-2G and 5754 (01/2026)
- State brackets: Tax Foundation, 2026 State Income Tax Rates and Brackets, which compiles each state's statutory rates
- State withholding: each state lottery's or tax agency's own page, linked in the lottery tax by state table
- New York City and Yonkers: New York State IT-201 instructions
- Game rules: powerball.com and megamillions.com
- Current jackpots and cash values: the New York Lottery's published estimates for the next drawing, checked automatically every day
Assumptions and limits
- You bought the ticket in the state where you live. Buying in another state can mean tax in both states, usually with a credit.
- State tax ignores state deductions and credits. Head-of-household filers use the single-filer state brackets, because state tables list only single and joint rates.
- County and city income taxes are not included, except New York City and Yonkers. Maryland, Indiana, Ohio and Michigan residents may owe more.
- The annuity assumes today's tax brackets apply in every future year.
- Federal tax ignores itemized deductions, credits, the alternative minimum tax and the net investment income tax.
- State brackets come from a reputable compilation rather than each state's own tables; we are replacing them with primary sources state by state.
- Puerto Rico and the U.S. Virgin Islands are not covered.
Corrections and changes
Found a number that does not match an official source? Use “Report an error” under any result or email hello@jackpotcalculator.com with a link to the source. We check every report and record changes here.
- October 1, 2026 — First version: 2026 federal and state rates; withholding checked for 33 jurisdictions; 11 official payouts reconciled.