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Lottery Payout Calculator
Compare the lump-sum cash option and the 30-year annuity on any jackpot — after federal and state taxes — to see which one actually nets you more.
Short answer
A lottery jackpot pays out two ways. The lump sum gives you the cash option — about 48% of the advertised jackpot — taxed once. The annuity pays the full advertised amount over 30 growing yearly payments, taxed as you receive them. Both are ordinary income: 24% is withheld federally up front, the top rate is 37%, and your state may take more. Enter the jackpot and your state below to compare both after tax.
Lump sum (cash)
$30,282,980
Take-home after tax
- Cash value
- $48,000,000
- Federal tax
- − $17,717,020
- Effective tax rate
- 36.9%
30-year annuity
Nets more$64,289,392
Take-home after tax
- Total paid out
- $100,000,000
- Federal tax
- − $35,710,608
- Effective tax rate
- 35.7%
≈ $2,142,980/yr after tax
On a $100,000,000 jackpot, the annuity nets more after tax — $64,289,392 vs $30,282,980. 24% ($11,520,000) is withheld from the cash option up front.
By game & option
Estimated after-tax take-home by jackpot (single filer, no state tax)
| Advertised jackpot | Cash value | Lump sum after tax | Annuity after tax |
|---|---|---|---|
| $50,000,000 | $24,000,000 | $15,162,980 | $32,789,393 |
| $100,000,000 | $48,000,000 | $30,282,980 | $64,289,392 |
| $300,000,000 | $144,000,000 | $90,762,980 | $190,289,393 |
| $500,000,000 | $240,000,000 | $151,242,980 | $316,289,392 |
| $1,000,000,000 | $480,000,000 | $302,442,980 | $631,289,393 |
Cash value assumes the default 48% cash option. Federal tax uses 2025 marginal brackets applied to the winnings; state tax is 0 here (many states don't tax lottery winnings). Annuity is 30 payments rising 5% a year, each taxed in its year. Estimates only — the exact cash value and schedule vary by drawing.
How a lottery payout is calculated
Start from the advertised jackpot — that's the annuity value, paid over 30 years in payments that rise 5% a year. The lump sum is the cash option, usually about 48% of that headline number. Both are taxed as ordinary income: 24% is withheld up front, but the real bite climbs to 37% federally on big wins, plus any state tax. The lump sum is taxed once; each annuity payment is taxed in its year, which can keep more of it in lower brackets.
How we calculate this
Every number on this page comes from comparing the two payout options and applying the same tax math to each:
- Cash value. the advertised (annuity) jackpot times the cash-option percentage — about 48% by default. This is the lump sum a winner can take instead of the annuity.
- Annuity schedule. 30 annual payments that each rise 5% and together sum to the full advertised jackpot: the first payment is jackpot × (r−1)/(rⁿ−1) with r = 1.05 and n = 30.
- Federal tax. winnings are ordinary income. 24% is withheld up front, but tax is estimated with 2025 marginal brackets, so large jackpots reach the 37% top rate. The lump sum is taxed once; each annuity payment is taxed in its year.
- State tax. a flat rate you set. Many states — California, Florida, Texas, Washington, and others — don't tax lottery winnings at all; New York's ~10.9% is the highest.
- Take-home. gross minus federal and state tax, shown for both the lump sum and the annuity so you can compare the after-tax totals directly.
Assumptions
- The cash-option percentage and annuity schedule vary by drawing and interest rates; 48% and a 5% graduated annuity are typical defaults.
- Federal tax uses 2025 marginal brackets applied to the winnings alone, not stacked on your other income — a close estimate, not your full return.
- State tax is a single flat rate; some states have local taxes or special lottery rules not modeled here.
- Educational estimates only, not tax advice. Confirm the exact figures with the lottery and a tax professional.
Sources
Last reviewed: July 19, 2026
Frequently asked questions
Should I take the lump sum or the annuity?+
The lump sum (cash option) gives you about 48% of the advertised jackpot immediately, taxed once. The annuity pays the full advertised amount over 30 growing yearly payments, so more money reaches you overall and it's spread across many years of taxes. The lump sum wins if you can invest the cash to beat the annuity's built-in 5% growth and you're disciplined; the annuity wins for guaranteed income and simpler taxes. This calculator shows both after tax so you can compare.
How much of a lottery jackpot do you actually take home?+
After taxes, a lump-sum winner typically keeps roughly 40–48% of the advertised jackpot: the cash option already cuts the jackpot to about 48%, then federal tax (up to 37%) and any state tax apply to that cash. On a $100 million jackpot, the ~$48 million cash option nets around $30 million after federal tax in a no-tax state — less where the state taxes winnings. Enter your jackpot and state to see your figure.
How are lottery winnings taxed?+
Lottery winnings are ordinary income. The payer withholds 24% federally up front on anything over $5,000, but the top federal rate is 37%, so most big winners owe more at tax time. On top of that, your state may tax winnings — from 0% (California, Florida, Texas, Washington, and others don't tax lottery prizes) to about 10.9% in New York. This calculator estimates federal tax with 2025 brackets plus the state rate you enter.
What is the cash value of a lottery jackpot?+
The cash value (or cash option) is the lump sum a winner can take instead of the annuity — the amount of money the lottery would otherwise invest to fund 30 years of payments. It's usually around 48% of the advertised jackpot, though the exact percentage moves with interest rates. A higher-rate environment pushes the cash value's share down. You can enter the exact cash value percentage if your drawing publishes it.
How does the lottery annuity work?+
The annuity pays the full advertised jackpot as 30 payments over 29 years — one immediately, then one a year. Each payment is 5% larger than the last, so early payments are smaller and later ones much bigger. The payments sum to the advertised amount, and each is taxed in the year you receive it, which can keep more of it in lower brackets than a single lump sum would.
Are these lottery payout figures exact?+
No — they're estimates. The cash value percentage and the annuity schedule vary by drawing, and federal tax here uses 2025 brackets applied to the winnings, not your full return. State treatment varies and a few states have local taxes too. Use this to compare the two options and understand the tax bite, then confirm the exact figures with the lottery and a tax professional before deciding.
Related tools
This tool provides estimates for planning only and is not tax or financial advice. The cash option percentage and annuity schedule vary by drawing; federal tax uses 2025 brackets applied to the winnings, and state treatment varies. Confirm exact figures with the lottery and a tax professional.