Powerball Payout and Tax Calculator
If you are lucky enough to have beaten the Powerball odds and won the jackpot, then you’ve come to the right place. We’ve crafted this tool so that you can compute how much tax you have to pay after winning the lottery. Find out and compare the total payout you would receive if you chose the lump sum or annuity option – followed by a payout chart displaying all 30 annuity payments.
To use our Powerball calculator, just type in the advertised jackpot amount and select your state and the calculator will do the rest.
After you are done, check out our guide on the best lottery prediction software for tools that will help increase your odds of winning – significantly.
Lump Sum/Cash Option Calculator
Annuity Calculator (Totals)
|Federal Taxes Paid (24%)||$240,000|
|Arizona Taxes Paid ( 5% )||$50,000|
|Net Payout (after taxes)||$710,000|
Annuity Calculator (Per Year)
|Year||Gross Payout||Federal Taxes||Arizona Taxes||Net Payout|
|1||$15,051||$3,612||$753||$10,687 per year|
|2||$15,804||$3,793||$790||$11,221 per year|
|3||$16,594||$3,983||$830||$11,782 per year|
|4||$17,424||$4,182||$871||$12,371 per year|
|5||$18,295||$4,391||$915||$12,990 per year|
|6||$19,210||$4,610||$960||$13,639 per year|
|7||$20,170||$4,841||$1,009||$14,321 per year|
|8||$21,179||$5,083||$1,059||$15,037 per year|
|9||$22,238||$5,337||$1,112||$15,789 per year|
|10||$23,350||$5,604||$1,167||$16,578 per year|
|11||$24,517||$5,884||$1,226||$17,407 per year|
|12||$25,743||$6,178||$1,287||$18,278 per year|
|13||$27,030||$6,487||$1,352||$19,191 per year|
|14||$28,382||$6,812||$1,419||$20,151 per year|
|15||$29,801||$7,152||$1,490||$21,159 per year|
|16||$31,291||$7,510||$1,565||$22,217 per year|
|17||$32,855||$7,885||$1,643||$23,327 per year|
|18||$34,498||$8,280||$1,725||$24,494 per year|
|19||$36,223||$8,694||$1,811||$25,718 per year|
|20||$38,034||$9,128||$1,902||$27,004 per year|
|21||$39,936||$9,585||$1,997||$28,355 per year|
|22||$41,933||$10,064||$2,097||$29,772 per year|
|23||$44,029||$10,567||$2,201||$31,261 per year|
|24||$46,231||$11,095||$2,312||$32,824 per year|
|25||$48,542||$11,650||$2,427||$34,465 per year|
|26||$50,970||$12,233||$2,548||$36,188 per year|
|27||$53,518||$12,844||$2,676||$37,998 per year|
|28||$56,194||$13,487||$2,810||$39,898 per year|
|29||$59,004||$14,161||$2,950||$41,893 per year|
|30||$61,954||$14,869||$3,098||$43,987 per year|
Our Powerball Calculator Explained
As you might already know, when a player wins the Powerball jackpot, they have to choose between a single lump sum or 30 annual payments to receive their prize.
Choosing the lump sum, also known as the cash option, reduces the jackpot size to approximately 61% of the original amount, but awards it all at once to the player. On the other hand, the annuity option awards the winner with the full amount or 100% of the jackpot – starting with one initial payment, followed by annual payments over the next 29 years.
Since the lump sum and annuity option award different payouts, it only follows that your tax liability (federal tax + state tax) will also be different for both.
What our Powerball calculator provides is a quick overview of the gross and net (after taxes) winnings you’d receive for both options – allowing you to make a more informed decision when comparing the two.
Finally, as an added feature, our tool also breaks down the annuity option into a handy payout schedule so you know how much you’ll receive each year.
Note: Payouts are approximations. For example, large charitable donations can be written off, meaning reduced tax liabilities.
The Powerball payout chart below captures the different prize tiers and odds of winning.
|Numbers Matched||Prize||Odds Of Winning|
|5 + Powerball||Jackpot||1 in 292,201,338|
|5||$1 Million||1 in 11,688,054|
|4 + Powerball||$50,000||1 in 913,129|
|4||$100||1 in 36,525|
|3 + Powerball||$100||1 in 14,494|
|3||$7||1 in 580|
|2 + Powerball||$7||1 in 701|
|1 + Powerball||$4||1 in 92|
|Powerball Only||$4||1 in 38|
Figures in this chart are rounded to the nearest one and are based on a single $2 play.
Glossary of Terms
Advertised Jackpot: The total payment a winner would receive should they choose the annuity option for any given drawing. This number is based on the funds in the prize pool (including all prior rollovers), expected ticket sales for the next drawing, and current market interest rates.
Annuity Payout Option: Payment scheme wherein prizes are awarded starting with 1 immediate payment followed by 29 yearly payments. These payments are graduated – meaning they increase by 5% each year to account for inflation. The total value of all payments is equivalent to 100% of the advertised jackpot.
Lump Sum Option: Payment scheme wherein a one-time payment is immediately awarded to the winner. The total value is approximately 61% of the advertised jackpot. This is also known as the cash option, and is the more popular choice among jackpot winners.
Federal Taxes: Income tax withheld by the US government, including income from lottery prize money. This can range from 24% to 37% of your winnings.
State Taxes: Additional tax withheld, dependent on the state. This varies across states, and can range from 0% to more than 8%.
Tax Liability: The taxes you will have to pay in order to receive your prize. This is computed as federal taxes + state taxes. Please note that in some cases, you might have to pay additional taxes.
Gross Payout: The total prize awarded to a winner before federal and state taxes are applied.
Net Payout: The remaining prize awarded to a winner after federal and state taxes are applied.
Other Lottery Calculators and Tools
Check out our Mega Millions Payout and Tax Calculator to figure out how much taxes you will owe on your lottery winnings and also your payout for both cash and annuity options.
If you haven’t bought your tickets yet and are wondering what the odds of your winning are, you can use our Lottery Odds Calculator or geek out and dive into the math behind Powerball Odds or Mega Million Odds.
Check out Lottery Critic’s very own Powerball Payout and Tax Calculator. We have both annuity and lump sum payouts calculated along with an annual breakdown of taxes by state and more.
Lottery Payout & Tax Calculator – All Information You need to Know!
You pay taxes on your income, as well as property and sales taxes. But did you know that some countries also impose taxes on lottery winnings?
Tax rates depend on the lotto you choose to play. In this article, we are offering a detailed explanation of how to calculate your exact winnings after taxes. Here is what you should know about the fees you will pay in the United States and worldwide!
Important Note No matter which lottery you decide to play, make sure you play with one of our recommended lottery sites, this step will make the process after your win easy and simple:
Taxes on Lottery Winnings in the US Explained
|Type of taxes||Tax rate|
|State taxes||0% – 8.82%|
Federal tax is applicable on the national level in the United States. Wherever you purchase the ticket for US Powerball or MegaMillions, you will have to pay the federal tax. The rate is set to 24%, which means that almost a fourth of your winning will go to the national government.
It is worth noting that the non-residents also need to pay a federal tax. The rate for non-residents is higher and set to 30%.
However, here is another perk for the residents. Although the initial rate is 24%, you need to report your income. If you end up in the top bracket, and that is often the case when jackpots are won, you might pay up to 37% on taxes. Consider hiring a tax expert to help you with paying taxes properly. They might be able to help you to find a way to qualify for deductions and not end up paying such large sums.
State taxes are another form of tax that lottery winners in the US can expect. These will be charged in the state where you purchase the ticket. The taxes vary significantly because some states don’t impose taxes on players. Other states, however, can have rates up to 8.82%.
It is worth noting that six states do not even offer lotteries. The list includes Alabama, Utah, Nevada, Mississippi, Hawaii, and Alaska. Delaware and California do not impose taxes on players who purchase tickets. Several other states, including Wyoming, Washington, South Dakota, Texas, Tennessee, New Hampshire, and Florida don’t apply an income tax on the state level.
New York is the state with the harshest approach with taxes. It will take 8.82% of the entire sum. Maryland is a close second with 8.75%, and District of Columbia imposes an 8.5%.
Here is an overview of exact tax rates by state:
|State||Tax rate||State||Tax rate|
|District of Columbia||8.5%||Maine||5%|
|North Carolina||5.5%||North Dakota||2.9%|
Local taxes are the ones that your municipality or county might charge on the winnings. If you compare them to federal taxes, these rates are far more favorable. In most cases, they will be from 1% to no more than 5%. It varies on your exact location, so make sure to consult the local regulations.
Additionally, some state and local lotteries could have what is called a retailer fee. Although this is a rare case, the retailer could be entitled to a fee that would be deducted from your prize.
Taxes on Lottery Winnings in the World
If you are living outside the United States, you might be subject to taxes in your home country. There are two situations that could happen:
- Winning in your home country – you are only subject to taxes in that country.
- Winning in another country – if you are a winner from abroad, you are subject to taxes in the country that organizes the lottery, and your home country.
Here is an overview of taxes in various countries:
10% tax on people who live 184 days a year in the country;
30% tax on people who live less than 184 days a year in the country
Local retailer fees on winnings from €100 to €500;
12% tax on winnings above €500
Tax-free up to COP70,000;
20% tax above COP70,000
Tax-free up to PLN2,280;
10% tax above PLN2,280
1% on winnings up to RON66,750;
16% tax + a flat RON667.50 on taxes from RON66,750 to RON445,000;
25% tax + a flat RON61,187.50 tax
Lottery Winning Taxes for Germany
Germany is one of the largest countries in Europe in terms of population. The national government has a favorable look toward lottery winnings. If you win here, you won’t have to pay a cent to the government. All players who qualify for winnings will keep 100% of those sums.
The most popular game in this country is undoubtedly Germany Lotto. A guaranteed jackpot fund and only 12 rollovers ensure plenty of excitement at each session.
Lottery Winning Taxes for the UK
The United Kingdom won’t impose taxes on lucky lottery winners. That means whatever you win, it will be yours entirely. It is very convenient and ensures there is no need to bang your head on taxes. Instead, you can watch a lottery draw and look forward to winning. And the sum that you win is irrelevant for taxes. Whatever you win, you will have at your disposal in cash or a bank account.
Lottery Winning Taxes for Australia
If you happen to play Oz Lotto or another popular lottery game in Australia, check out the potential winnings. The jackpot has a guaranteed prize fund of AUD2,000,000. If you win it, the entire sum will be yours!
The only thing that could stop you from taking 100% of the sum is the tax in your home country. That is why you should check it if you are playing abroad.
Lottery Winning Taxes for India
The statistics indicate that India has one of the harshest taxes in the world. The latest changes to the lottery law imply that you will have to pay 28% on all winnings.
This is actually a favorable change toward the previous policy. India used to tax 30.9% plus additional income tax. Today, the tax rate is a little lower. Additionally, everything is simplified, which ensures that the citizens of this country have no problems when reporting their income.
Lottery Winning Taxes for Russia
Russia has a unique approach for taxing lottery winnings. If you spend most of the year in Russia (184 days), you are entitled to a favorable lottery tax of 10%. The same tax applies to all citizens of Russia.
However, if you don’t spend most of the year (184 days) in this country, the tax rate will be harsh. You will have to pay 30% of your winnings to the national government.
Lottery Winning Taxes for France
The French government doesn’t charge taxes on lottery games. That is something players from around the world welcome.
If you try the national France Lotto, you will be competing for a jackpot of at least €2 million. That is the guaranteed sum, and if you are lucky enough to win it, you get to take all the money home. However, make sure to consider taxes in your country if playing from abroad.
Lottery Winning Taxes for Canada
Did you win at a Canadian-based lottery? If the answer is yes, we have good news. You will take all your winnings home! This country doesn’t charge taxes regardless of the sum that you win.
Canada has the national 6/49 Lotto, which offers a jackpot with a minimum guaranteed sum set at $5 million. The game offers one of the most favorable jackpot odds if you compare it to other national lotteries.
Lottery Winning Taxes for Italy
Italy has an interesting policy regarding lottery winnings. As long as the sum is below €500, you won’t be charged a single cent. However, sums between €100 and €500 might be subject to a lottery retailer fee.
All winnings above €500 will be charged at a 12% rate. That is not the harshest rate in the world, but it is still rather unfavorable. If you feel like trying Italian lotteries, SuperEna lotto often offers very tempting jackpots.
Lottery Winning Taxes for Brazil
Brazil offers various lotto games, such as Quina and Mega Sena. They are all subject to lottery taxes because the national government charges 13.8% on all winnings.
That puts Brazil among countries that are quite harsh when charging taxes. The country will take its portion regardless of the sum you win. And if you happen to win a large sum, a significant amount will be taxed at source. What if your home country has applicable taxes, too? That means you can end up with a fifth or more of your winnings taken via taxes.
Taxes in Your Home Country
The approaches to lottery winning taxes largely vary from one country to another. You will find big countries that choose to tax modern rates. An example is Mexico, which has a 1% federal tax and a state tax that varies from 1.65% to 7%. Austria, Ireland, and South Africa are countries that stick to the tax-free policy.
Others, such as Spain, Poland, Colombia, and Portugal, take 20% of winnings above certain limits. Ukraine is pretty harsh with its policy since it takes 19.5% from all winnings.
What Are Your Payout Options When Winning the Lottery?
Depending on the lottery and the quantity of the prize, you might have two available payment options.
The first one is a lump sum cash payment. That method involves paying you the entire sum at once. Alternatively, you can choose annuities. These are usually yearly installments that allow you to spread the payment throughout several years or decades.
Make sure to check with your lottery provider which payment options are at your disposal.
Getting all the money at once
Not having to wait until you receive future installments
The prize sum could be smaller compared to the sum paid in annuities
If you are not sensible about spending money, you could end up losing it
Very convenient for money management
It prevents you from wasting money at once
Bigger prize sums than in lump sum payments
You don’t get all the money at once
The cash value can drop significantly over time
What Are the Pros and Cons of Lump Sum Payments?
A lump-sum payment sounds tempting at first glance. Once you win a hefty sum, it is nice to see the entire amount in your bank account. To win such huge prize, some people tend to rely on lotto dominator, but before you do, you might want to check out if it’s really worth it! The fact that you have that much money at your disposal is attractive to anyone. You can spend the cash as you see fit, and no one can stop you.
That is both an advantage and a drawback. Most people aren’t used to that much cash at once and don’t know how to control their spending. That might lead to spending all the money and going broke without even realizing it. Living in luxury, spending on friends, and traveling around the world is expensive. You can easily waste the entire sum without any long-term planning.
Additionally, lump-sum jackpots might be smaller than prizes paid in annuities. That is because the lotteries calculate inflation rates and other details. That is why you could end with 20% less sum than what was specified in the promised jackpot.
What Are the Pros and Cons of Annuities?
Annuities involve paying the prize in installments. These could be monthly or yearly installments, but it is usually the latter. Depending on the game terms and conditions, the prize could be spread in several annuities or across several decades.
The biggest advantage of annuities is that you will receive a bigger prize sum in total. However, you will receive that sum in multiple installments. It means you won’t have it available at once.
That could be a benefit if you are not wise at spending money. It could be a savings method and ensure that you have enough money in the long run. On the other hand, cash value could drop significantly over time. You never know what could go wrong, which is why you should carefully assess which method is better.
Do I need to pay taxes to the state where I bought the ticket even if I don’t live there?
That depends on the state, but most of them won’t impose additional taxes. Maryland and Arizona are the only two states that will charge you even if you don’t live there. All the other states and there are 43 of them, won’t impose additional taxes. However, make sure to check with the state where you reside for tax details.
Is it possible to adjust the amount of tax the lottery withholds?
Unfortunately, this is not possible. Wherever you purchase the lottery tickets, you will be subject to applicable taxes in that state or country. The exact rules depend on the location, but no individual has the power of changing tax policies and laws.
Will winning the lottery influence my tax bracket?
Yes, it is possible that what you win on the lottery will influence your tax bracket. The top federal tax rate might increase from 22% to more than 35%. If you were in the top bracket before the prize, you could expect a 37% tax. Otherwise, the chances are that you can hope for a less significant increase.
No doubt, playing the lottery is exciting, and winning a hefty prize is exhilarating. There are some tips as well, which guide the players how to win the lottery. The initial happiness starts to fade once you realize that applicable taxes will take away a portion of your prize. That is why you should get yourself familiar with tax rates before purchasing a ticket. It is the right method to enjoy the games while knowing the exact sum that you could be taking home!
Did you win in a lotto game in the US or another country? Check out our lottery payout and tax calculator to learn about applicable taxes on your winnings!