You just won the $760 million Powerball. Now spend it.
Go on, everyone does it. Pick a jackpot, see what really lands in your account after taxes, then buy the house, the car and the trip. Whatever is left keeps paying you every year, for the rest of your life.
1. Pick the jackpot you just won
2. Where did you buy the winning ticket?
3. What actually lands in your account
Select a state above to see your estimated take-home.
How much do you need to be set for life?
Less than you would think. Invest what is left after the spending spree and draw 4.0% a year, the rule planners use for money meant to last indefinitely, and the principal never runs out.
| Left over | Every year | Every month |
|---|---|---|
| $5 million | $200,000 | $16,667 |
| $20 million | $800,000 | $66,667 |
| $50 million | $2,000,000 | $166,667 |
| $100 million | $4,000,000 | $333,333 |
| $250 million | $10,000,000 | $833,333 |
Where you buy the ticket changes how big the dream is
Federal tax is the same everywhere. State tax is not: the spread between the best and worst states is nearly eleven percentage points, which on a $500 million cash payout is more than $50 million. That is a lot of beach houses.
No state tax at all
The most expensive states
Lottery tax calculator by state
Pick your state to see the take-home after federal and state tax.
- Alabama5.0%
- Alaska0%
- Arizona2.5%
- Arkansas3.9%
- California0%
- Colorado4.4%
- Connecticut6.99%
- Delaware0%
- Florida0%
- Georgia5.19%
- Hawaii11.0%
- Idaho5.3%
- Illinois4.95%
- Indiana2.95%
- Iowa3.8%
- Kansas5.7%
- Kentucky3.5%
- Louisiana3.0%
- Maine7.15%
- Maryland6.5%
- Massachusetts9.0%
- Michigan4.25%
- Minnesota9.85%
- Mississippi4.0%
- Missouri4.7%
- Montana5.9%
- Nebraska4.55%
- Nevada0%
- New Hampshire0%
- New Jersey10.75%
- New Mexico5.9%
- New York10.9%
- North Carolina3.99%
- North Dakota2.5%
- Ohio2.75%
- Oklahoma4.75%
- Oregon9.9%
- Pennsylvania3.07%
- Rhode Island5.99%
- South Carolina6.2%
- South Dakota0%
- Tennessee0%
- Texas0%
- Utah4.5%
- Vermont8.75%
- Virginia5.75%
- Washington0%
- Washington, D.C.10.75%
- West Virginia4.82%
- Wisconsin7.65%
- Wyoming0%
Before you claim
The decisions that matter most are the ones made in the first few days, while every option is still open.
Lump sum vs annuity
The cash option hands you about half the advertised jackpot immediately. The annuity pays the full amount over 29 years. Here is how the two actually compare after tax.
Why only 24% is withheld
The lottery withholds 24% federally, but the top federal bracket is 37%. That 13-point gap is a bill that comes due in April, and it surprises almost every winner.
What to do if you win
The decisions that matter most are the ones made before you claim. A practical sequence for the first three days.
Staying anonymous
Some states let you claim without ever being named. Others publish your name, town and prize. Here is how the landscape actually breaks down.
Real numbers, for a daydream
The fun only works if the numbers are honest, so the calculator does the tax properly. The lottery withholds 24% federal tax up front, but a jackpot is taxed at up to 37%, and the difference is due when you file. State tax is applied at each state's top rate on lottery winnings, and the annuity is taxed payment by payment over its 30 years. The details are in why only 24% is withheld and the state-by-state table.
Won something other than a jackpot, like a slot hit, poker tournament or sports bet? WinningsTax covers the tax on those.
A word about the odds
The chance of winning the Powerball jackpot is 1 in 292,201,338, and Mega Millions is 1 in 290,472,336. Dreaming is free; tickets are not. Play for fun, never as a plan. If you really do come into a windfall, from a lottery or anywhere else, start with what to do in the first 72 hours and talk to a CPA before you spend a cent.