About LotteryAfterTax
LotteryAfterTax is a free, independent calculator that shows lottery winners and players exactly how much they would take home after taxes. We built it because the gap between the advertised jackpot and the actual after-tax payout is enormous, and most people have no clear way to see it until it is too late to make informed decisions.
The headline jackpot number on a Powerball or Mega Millions billboard is the total value of a 30-year annuity before any taxes. Most winners take the lump sum, which is already around 60 percent of that number. Then federal income taxes at 37 percent take another large cut. Then state taxes, which vary dramatically from zero in Florida and Texas to nearly 11 percent in New York. The result is that a winner in New York keeps roughly 31 cents of every advertised dollar. We make that math visible, instantly, for any jackpot amount and any of the 47 US lottery jurisdictions.
How Our Calculator Works
Our calculator uses publicly available federal and state tax rates to estimate after-tax payouts. Here is the methodology:
- Lump sum cash value is calculated at 60 percent of the advertised jackpot, consistent with the typical cash option offered by both Powerball and Mega Millions
- Federal income tax is applied at the 37 percent top marginal rate, which applies to the full lump sum amount for any jackpot large enough to be newsworthy
- State income tax is applied at each jurisdiction's published top rate on lottery winnings, covering all 47 US jurisdictions where Powerball and Mega Millions are sold
- Annuity payments are calculated using the standard structure: 30 payments over 29 years, with each payment approximately 5 percent larger than the previous one, per the published Powerball and Mega Millions annuity rules
Jackpot amounts are fetched live from Powerball and Mega Millions and updated hourly, so the numbers you see reflect the current prize pool. Users can also enter any custom jackpot amount manually.
Our Data Sources
Live jackpot amounts are sourced directly from powerball.com and megamillions.com. State tax rates are sourced from each state's published department of revenue guidelines and updated when rate changes are announced. Federal tax rates reflect current IRS published brackets.
Editorial Standards
All articles published on LotteryAfterTax are written by our editorial team and reviewed for factual accuracy before publication. We cover lottery taxation, payout structures, winner strategies, and related financial topics. Our goal is to provide clear, accurate, plain-English information that helps people make better decisions about large financial windfalls.
We correct errors promptly when identified. If you believe something on this site is inaccurate, please use the contact form to let us know and we will review it within 48 hours.
What We Are Not
LotteryAfterTax is an informational resource, not a tax advisor, financial planner, or legal service. All calculations are estimates based on published tax rates and standard assumptions. Your actual tax liability will depend on your full financial situation, filing status, deductions, and other individual factors. Always consult a qualified tax professional before making financial decisions related to a large windfall.
Get in Touch
We welcome corrections, suggestions, and questions. If you found an error, have a topic you would like us to cover, or just want to reach us, use our contact form. We read every message.