See what a jackpot is really worth after federal withholding, top-bracket tax and state tax.
What this calculator does
The advertised jackpot is the annuity total paid over 30 years. Take the cash option instead and you receive roughly half that, before any tax. Then 24% is withheld immediately and the rest of your top-bracket liability is settled at filing.
Comparing the lump sum and annuity here shows why the headline number and the cheque are so far apart.
The default scenario, worked through
As an example, with a advertised jackpot of 100,000,000, the calculator returns a net take-home of $31,548,529.75. Underneath, Gross payout comes out at $50,000,000 and Federal withholding at $12,000,000. Change any field and every figure updates as you type.
Using the calculator
- Enter the advertised jackpot.
- Choose lump sum or annuity and set the cash value percentage.
- Add your state tax rate to see the final net.
How the number is calculated
lump sum = jackpot × cash value %
federal withholding = 24% up front, top bracket settled at filing
net = gross − federal − state
Common questions
Why is the lump sum so much less?
The annuity total assumes 30 years of investment growth on the prize fund. The cash option is what that fund is worth today, usually around half.
Which states do not tax lottery winnings?
Several states with no income tax, and a few that specifically exempt lottery prizes. Set the state rate to zero for those.
Is the 24% withholding the final tax?
No — it is a prepayment. A large jackpot lands in the top federal bracket, so more is typically owed at filing.