Lottery tax calculator
Enter the jackpot and see what you would really take home. The calculator applies the 24% federal withholding, your true federal tax on top of your other income, your state tax, and shows the lump sum and the 30-year annuity side by side.
Cash option
$47,000,000
before tax
Take-home, lump sum
$29,639,920
after about 36.9% tax
Total tax, lump sum
$17,360,080
Federal $17,360,080 + state $0
Lump sum breakdown
Your top federal rate on this win: 37%. The lottery withholds only 24%, so a large jackpot usually means a large bill on top.
Annuity: 30 payments over 29 years
First payment
$1,505,144
rises 5% a year
Total take-home
$63,897,592
from $100,000,000 gross
Worth today at 4%
$33,331,724
annuity take-home in today's money
On these numbers the annuity is worth more in today's money ($33,331,724 versus $29,639,920). Change the discount rate and see how it flips.
See every annuity payment
| Year | Gross | Federal tax | State tax | Take-home |
|---|---|---|---|---|
| 1 | $1,505,144 | $526,983 | $0 | $978,160 |
| 2 | $1,580,401 | $554,829 | $0 | $1,025,572 |
| 3 | $1,659,421 | $584,066 | $0 | $1,075,355 |
| 4 | $1,742,392 | $614,765 | $0 | $1,127,627 |
| 5 | $1,829,511 | $646,999 | $0 | $1,182,512 |
| 6 | $1,920,987 | $680,845 | $0 | $1,240,142 |
| 7 | $2,017,036 | $716,384 | $0 | $1,300,653 |
| 8 | $2,117,888 | $753,699 | $0 | $1,364,189 |
| 9 | $2,223,782 | $792,880 | $0 | $1,430,903 |
| 10 | $2,334,972 | $834,020 | $0 | $1,500,952 |
| 11 | $2,451,720 | $877,217 | $0 | $1,574,503 |
| 12 | $2,574,306 | $922,574 | $0 | $1,651,733 |
| 13 | $2,703,021 | $970,198 | $0 | $1,732,823 |
| 14 | $2,838,173 | $1,020,204 | $0 | $1,817,968 |
| 15 | $2,980,081 | $1,072,710 | $0 | $1,907,371 |
| 16 | $3,129,085 | $1,127,842 | $0 | $2,001,243 |
| 17 | $3,285,540 | $1,185,730 | $0 | $2,099,810 |
| 18 | $3,449,816 | $1,246,512 | $0 | $2,203,304 |
| 19 | $3,622,307 | $1,310,334 | $0 | $2,311,973 |
| 20 | $3,803,423 | $1,377,347 | $0 | $2,426,076 |
| 21 | $3,993,594 | $1,447,710 | $0 | $2,545,884 |
| 22 | $4,193,274 | $1,521,591 | $0 | $2,671,682 |
| 23 | $4,402,937 | $1,599,167 | $0 | $2,803,770 |
| 24 | $4,623,084 | $1,680,621 | $0 | $2,942,463 |
| 25 | $4,854,238 | $1,766,148 | $0 | $3,088,090 |
| 26 | $5,096,950 | $1,855,952 | $0 | $3,240,998 |
| 27 | $5,351,798 | $1,950,245 | $0 | $3,401,552 |
| 28 | $5,619,388 | $2,049,254 | $0 | $3,570,134 |
| 29 | $5,900,357 | $2,153,212 | $0 | $3,747,145 |
| 30 | $6,195,375 | $2,262,369 | $0 | $3,933,006 |
An estimate for educational use, using 2026 US federal brackets and the standard deduction, with the win taxed as ordinary income on top of the income you enter. It ignores deductions, credits, the alternative minimum tax, local taxes you do not enter and trusts. Pools, gifts and estate tax change the picture. Talk to a tax professional before you claim a large prize.
How lottery winnings are taxed in the US
Lottery winnings are taxable income. When you claim a prize over $5,000, the lottery withholds 24% for federal tax before you see a cent. That is only a down payment. A big win is added to your other income and taxed at your marginal rates, which reach 37% on income above roughly $640,000 for a single filer in 2026. So the withheld 24% usually leaves a further bill when you file.
Most states also tax lottery winnings at their ordinary income tax rate. A few states charge nothing: California, Florida, Texas, Washington, Nevada, Tennessee, South Dakota, Wyoming, Alaska and New Hampshire do not tax lottery prizes. If you live in one of them, state tax is zero. Some cities add their own tax.
What the calculator does
- 1Takes the advertised jackpot and applies the cash option percentage to get the lump sum.
- 2Adds the lump sum to the other income you enter and applies the 2026 federal brackets and standard deduction.
- 3Subtracts the 24% already withheld to show how much more you will owe.
- 4Applies your state rate to the winnings.
- 5For the annuity, spreads the jackpot over 30 payments that each grow by 5%, taxes every year separately and discounts the result to today's money.
This is an estimate. It leaves out deductions, credits, the alternative minimum tax and local taxes. Always confirm with a tax professional before claiming a large prize.
Lump sum or annuity: how to think about it
- The lump sum is a fixed amount now, usually about half the advertised jackpot, and is taxed in one year at the top brackets.
- The annuity pays the full advertised amount over 29 years, rises 5% a year and is taxed year by year, often at lower rates in the early years.
- The right answer depends on how much you can earn on invested money, your discipline, your health and family, and your tax situation.
- Winners who take the annuity cannot spend it all at once, which protects some people from themselves. Winners who take the lump sum can invest it, but also lose it.
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<p style="font-size:14px">Free tool by <a href="https://cryptodrawz.com/tools/lottery-tax-calculator">CryptoDrawz</a></p>Frequently asked questions
How much tax do you pay on lottery winnings?
Federal tax is withheld at 24% on prizes over $5,000, but the real federal bill can reach 37% on the top slice of a large win. State tax depends on where you live and can be zero. The calculator shows both.
Is the lottery taxed twice?
No. The 24% withheld is an advance payment against your federal income tax. If your real tax is higher, you pay the difference when you file. If it is lower, you get a refund.
Which states do not tax lottery winnings?
California, Florida, Texas, Washington, Nevada, Tennessee, South Dakota, Wyoming, Alaska and New Hampshire. Other states tax winnings, usually at their normal income tax rate.
Is it better to take the lump sum or the annuity?
It depends on your discipline, investment returns and tax situation. The annuity compare table in this tool shows the take-home of each, in today's money.