Lottery Tax Calculator 2026
Find out exactly how much of your lottery jackpot you keep after federal and state taxes. Works for Powerball, Mega Millions, or any prize amount.
Quick Answer
A $100M Powerball jackpot has a lump sum of approximately $60M. After 37% federal tax ($22.2M) and a typical state tax of 5% ($3M), you take home roughly $34.8M in Texas. In New York, state tax adds another $6.5M hit — leaving you with ~$28.3M. The IRS withholds 24% upfront; you'll owe the remaining 13% when you file.
Lottery Winnings Details
Typical lump sum is 50–65% of advertised jackpot. Powerball/Mega Millions typically ~60%.
Your Lottery Tax Breakdown
Take-Home After Tax
$37,849,222
lump sum
Total Taxes
$22,150,778
Effective Rate
36.9%
IRS Withholding vs. Actual Tax
The IRS withholds 24% upfront ($14,400,000) — but lottery winnings push you into the 37% top bracket. You will owe an additional $7,750,778 at tax time.
2026 federal brackets. State rates are approximate. Does not include local taxes (NYC adds ~3.9%). Consult a CPA before claiming large prizes.
$100M Jackpot After Taxes — By State
Lump sum at 60% ($60M). Single filer, 37% federal rate, no other income.
| State | State Tax Rate | State Tax | Take-Home |
|---|---|---|---|
| Texas (no tax) | 0% | $0 | $37.8M |
| Florida (no tax) | 0% | $0 | $37.8M |
| Pennsylvania | 3.07% | $1.84M | $35.96M |
| Ohio | 3.5% | $2.10M | $35.70M |
| Virginia | 5.75% | $3.45M | $34.35M |
| New York | 10.9% | $6.54M | $31.26M |
| California (exempt) | 0% | $0 | $37.8M |
After 37% federal tax on $60M lump sum ($22.2M federal tax). State tax on full lump sum at stated rate.
Frequently Asked Questions
How much tax do you pay on lottery winnings?
Lottery winnings are taxed as ordinary income at the federal level. In 2026: the IRS withholds 24% upfront, but since large jackpots push you into the 37% top bracket, you'll owe an additional 13% at tax filing time. State taxes vary from 0% (Texas, Florida, Nevada) to 13.3% (California, which doesn't tax lottery winnings — but most states charge 3–10%). On a $100M jackpot lump sum of ~$60M: expect to keep approximately $36–40M after all taxes.
Should I take the lump sum or annuity for lottery winnings?
Financial math typically favors the lump sum if you can invest it well. The annuity pays the advertised jackpot over 30 years, but the lump sum is only 50–65% of that amount. If you invest the lump sum at 7% annual return, you can accumulate more than the total annuity payments over 30 years. However, annuity benefits: guaranteed income, protection from poor investing decisions, and potentially lower annual taxes if you're in a lower bracket. Most financial advisors recommend lump sum for financially disciplined winners.
Do lottery winnings affect Social Security benefits?
If you're already receiving Social Security benefits and are under full retirement age, lottery winnings could temporarily affect your benefits if they're considered 'earned income' — but lottery winnings are unearned income and don't directly reduce Social Security benefits. However, they do count as income for provisional income calculations: if your combined income (SS benefits + other income) exceeds $34,000 (single) or $44,000 (married), up to 85% of your SS benefits become taxable.
Which states don't tax lottery winnings?
States with no income tax — and therefore no lottery tax — include Texas, Florida, Nevada, Wyoming, South Dakota, Tennessee, Alaska, and Washington. California is a special case: it charges no state income tax on lottery winnings despite having a high general income tax rate. New Hampshire has no general income tax. States with the highest lottery tax rates: New York (10.9%), New Jersey (10.75%), Oregon (9.9%), Minnesota (9.85%), Washington D.C. (10.75%).
How does the IRS withhold tax on lottery winnings?
The IRS requires 24% federal tax withholding on lottery prizes over $5,000. The lottery agency withholds this before paying you. However, if you're in the 37% bracket (which you will be on any large jackpot), you'll owe the additional 13% when you file your tax return. This means the IRS withholding (24%) significantly under-collects for jackpot winners. You may need to make estimated tax payments to avoid underpayment penalties.
What is the federal tax rate on Powerball winnings?
Powerball jackpot winners will almost always be in the 37% federal income tax bracket — the highest rate applied to income over $640,600 (single, 2026). The effective federal tax rate on the lump sum may be slightly less than 37% because the first ~$640,000 is taxed at lower rates. On a $60M lump sum: the top bracket applies to ~$59.4M, making the effective federal rate approximately 36.5% — plus state taxes.