🎟️ Lottery Tax Calculator — Lump Sum vs. Annuity
Model federal (progressive) + state tax, compare options, and view the growing annuity schedule.
Payout Basics
Enter the headline prize (annuity total).
Typical cash option ≈ 40–55% of jackpot (default 52%).
Set to your state rate (some states ~0%; others up to ~10%).
Non-U.S. residents: default 30% federal withholding on gambling winnings (approximation).
Purely informational; final federal tax uses progressive brackets.
Annuity Options
Mega Millions/Powerball commonly use 30 payments.
Annuity payments typically grow by a fixed % each year.
Results
Lump sum — Gross cash
—
Lump sum — Federal tax (final)
—
Lump sum — State tax
—
Lump sum — Net after tax
—
Annuity — Total gross (sum of payments)
—
Annuity — Total federal tax (sum)
—
Annuity — Total state tax (sum)
—
Annuity — Total net (sum)
—
Difference (Annuity − Lump)
—
Annuity Schedule (growing payments)
—
| Year | Gross | Federal | State | Net | Cumulative Net |
|---|---|---|---|---|---|
| Totals | — | — | — | — | — |
Actions
Step-by-step derivation
—
References
- Omni Calculator — Lottery Tax (lump vs. annuity; 24% initial withholding & progressive federal up to 37%; state varies).
- IRS — IRS releases tax inflation adjustments for tax year 2025 (bracket thresholds & top rate 37%).
- Bankrate — 2025 Tax Brackets (complete 2025 bracket ranges by filing status).
- IRS — W-2G / Gambling income & nonresident withholding guidance (24% withholding; non-U.S. generally 30%).
This tool simplifies many nuances (e.g., other income, deductions, credits, state-specific rules, treaty rates). For planning only.