LotteryLottery Tax Calculator
Estimate how much federal and state tax would be withheld from a jackpot, and roughly what you'd take home under the lump sum vs. annuity option.
| Lump sum | Annuity (total) | |
|---|---|---|
| Gross amount | ||
| Federal tax (24% withheld + est. top-up to 37%) | ||
| State tax | ||
| Net |
Updates automatically as you change the jackpot or state — no button needed. Annuity figures are the total across all 30 payments, not a single year's payment.
How Lottery Winnings Are Taxed
In the U.S., lottery winnings are treated as ordinary taxable income. The IRS requires lottery operators to automatically withhold 24% of any prize over $5,000 for federal tax purposes. However, because large jackpots push winners into the top 37% federal bracket, most winners owe substantially more than the 24% withheld when they file their return — this calculator's federal estimate accounts for that gap.
State tax varies enormously: states like California, Florida and Texas do not tax lottery winnings at all, while New York withholds close to 11%. Choose your state above to see its specific rate.
The lump sum (cash) option pays a single reduced amount roughly equal to the present-day cash value of the jackpot, typically 50–55% of the advertised annuity figure, before taxes. The annuity pays the full advertised amount spread over 29–30 annual installments.
Go deeper: How Lottery Winnings Are Taxed in the U.S. · Lump Sum vs. Annuity Explained · What to Do If You Win