How much do you actually take home from a $663M Powerball jackpot?

The advertised Powerball jackpot is paid as a 30-year annuity. Most winners take the lump sum cash option, which is roughly 45% of the advertised jackpot. From that lump sum, the IRS withholds 24% federal tax at the source, and the rest of the federal tax up to the 37% top bracket comes due at filing. State lottery tax ranges from 0% (Texas, Florida, California, and 7 other no-tax states) to as much as 10.9% (New York). The Lottery Math calculator runs this math for the current jackpot and any state.

What is the federal tax on lottery winnings?

Federal tax on lottery winnings can reach 37%, the top marginal bracket for single filers earning over $640,600 in 2026. Any Powerball or Mega Millions jackpot pushes a winner into that bracket. The IRS withholds 24% upfront on any lottery prize above $5,000, but the additional 13% balance comes due at tax filing the following April. The Lottery Math calculator uses the exact IRS 2026 brackets, not a flat rate.

Which states do not tax lottery winnings?

Ten states do not collect state income tax on lottery winnings: Alaska, California, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. California exempts lottery winnings by state constitution; the other nine have no state income tax at all. Hawaii, Nevada, Utah, and Alaska do not sell Powerball or Mega Millions tickets, so residents have to buy across state lines. Winners in no-tax states only owe federal lottery tax, which still reaches 37% at the top bracket.

Should I take the lump sum or annuity from Powerball or Mega Millions?

Most Powerball and Mega Millions winners choose the lump sum cash option, which delivers roughly 45% of the advertised jackpot immediately. The annuity pays the full advertised jackpot over 30 graduated annual payments. The choice depends on your goals, your expected investment return, and your tax planning. The Lottery Math calculator focuses on the lump sum because that is what most winners take. For a direct comparison, see the annuity vs. lump sum calculator.

Are the Lottery Math calculations accurate?

The Lottery Math uses IRS 2026 federal brackets and top marginal state rates published by the Tax Foundation. Federal tax is calculated progressively across brackets, not as a flat 37%. State tax is applied at each state's top marginal rate to the full lump sum. Live jackpot data is pulled from official lottery sources. The calculator does not account for itemized deductions, charitable giving, or trust structures a winner might use to reduce their effective rate.

The Best Lottery Tax Calculator

What you'd actually take home.

Lottery tax calculator for Powerball, Mega Millions, and every state.

Lotteries advertise the jackpot, never the after-tax cash, so pick your game, state, and filing status to see what you'd really keep after federal and state taxes.

Advertised jackpot29-yr annuity

$663M

Marketed as $663,000,000.
Almost nobody takes the annuity, and even if you did, the tax math barely changes.

What you actually keepafter taxes

$190,092,993

Lump-sum, in Texas · Single
28.7% kept · 71.3% taken by the government

StateTexas

GamePowerball

Filing statusSingle

Single

Standard deduction: $16,100. All lottery income is taxed at your individual rate. This is the most common filing status for winners.

$39,172,407 surprise tax bill due next April. The IRS only withholds 24% upfront, but lottery wins push you into the top 37% bracket. The difference comes out of your pocket when you file, and most winners never see it coming.

You keep 28.7% · $190.1MTaken 71.3% · $111.6M

Cash option

46%

$301.7M lump sum

Federal effective

37.0%

$111.6M owed

Texas tax

No state tax

Total taken

71.3%

$111.6M

Jackpot odds

1 in 292M

Per single ticket

Next draw

Jul 29

Mon · Wed · Sat

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Step 01 · Itemized breakdown

From advertised to deposit, line by line.

Federal withholding hits first, then your full bracket math, then the state. Every row updates when you change the controls above. Sources are cited on each row.

Advertised jackpot

Paid as an annuity over 29 years. Fewer than 5% of winners pick this option.Lottery commission

$663,000,000

Lump-sum cash (46%)

The cash value of the annuity, paid as a single check on day one.Lottery cash option

$301,665,000

Federal withholding (24%)

The IRS takes this off the top before you ever see the money.IRS Publication 525

−$72,399,600

Additional federal tax owed in April

Big lottery wins push you into the 37% top bracket. Your effective federal rate is 37.0%. Due April 15.IRS 2026 brackets

−$39,172,407