Powerball After Tax Calculator

For a lump sum, the cash value the lottery pays. For the annuity, the advertised jackpot, which is the undiscounted total of all payments.
Withholding applies to the prize minus the wager. A single Powerball or Mega Millions play is commonly $2 (ticket price not verified here); add-ons raise it.
Wages and other income, which push the prize into higher brackets.
Maryland withholds a different rate for nonresidents.
New York State Lottery prizes are also subject to city withholding if you lived in New York City or Yonkers when you won; applies to proceeds over $5,000 like the state withholding.
Overrides the table when above 0, for example when your lottery applies a different rate than the one on file or for a state whose rate could not be verified.
Overrides the New York City or Yonkers resident rate chosen above when above 0. Leave 0 elsewhere.
Used for backup and nonresident-alien withholding. $600 is the commonly stated lottery reporting threshold; the 01/2026 IRS instructions say only "applicable reporting threshold", so it is left editable.
Net paid after withholding (lump sum; annuity total)
760,000.48 USD
Lottery Tax Calculator
Gross prize
1,000,000.00 USD
Proceeds subject to withholding (prize minus wager)
999,998.00 USD
Federal withholding (lump sum; annuity total)
239,999.52 USD
State withholding (lump sum; annuity total)
0.00 USD
City withholding (lump sum; annuity total)
0.00 USD
Total withheld
239,999.52 USD
State rate applied
0.0000 %
Estimated 2026 taxable income (year of the lump sum or first payment)
983,898.00 USD
Estimated 2026 federal income tax on that year
319,999.51 USD
Additional federal tax due at filing (tax minus withholding)
79,999.99 USD
Estimated federal tax as a share of the payment
32.000 %
Federal marginal rate reached
37 %
Worked out from IRS Instructions for Forms W-2G and 5754: regular gambling withholding of 24% on proceeds over $5,000 from lotteries, instalment rule, backup withholding and 7 other sources.
Withholding is not the final tax. A large prize is taxed at up to 37% federally while only 24% is withheld; the difference is due with your return, possibly with estimated-tax payments during the year.
An estimate for planning, not tax advice. The 24% withheld at claim is far below the 37% top rate a jackpot lands in, state withholding is often below the state tax owed, and the winner's whole return decides the final bill.

How this is worked out

6 steps
  1. Proceeds = prize 1000000 - wager 2 = 999998 (over $5,000, so withholding applies)
  2. Federal withholding = 239999.52
  3. State withholding at 0% = 0
  4. Net paid = 1000000 - 239999.52 - 0 - 0 = 760000.48
  5. Estimated 2026 taxable income = 999998 + 0 - standard deduction 16100 = 983898; federal tax from the 2026 brackets = 319999.51
  6. Additional federal tax due at filing = 319999.51 - 239999.52 = 79999.99

Results are general information, not financial, tax, legal, medical or engineering advice.