Powerball Payout and Tax Calculator

Powerball awards are taxed so that you do not just look at the sums that are announced to see how much money you would get if you won. The retention rate varies on how much you win and the jurisdiction in which you purchase your ticket. All winners of prizes in excess of $5,000 are subject to a federal tax while several of the participating states are also subject to their own tax. Some places, such as New York City, also charge a municipal lottery income tax.

You can find out how much tax you may pay below. Given that this is such a complicated subject, in case of a major lottery win you should contact a financial professional so that you are completely informed of your tax responsibilities.

If you are fortunate enough to beat the Powerball odds and win the jackpot, you're at the right spot. We designed this calculator so you can calculate how much tax you have to pay once the lottery has been won. Find out and compare the total payoff whether you selected the lump sum or rental option, followed by a payout chart with 30 rental installments.

Just enter the stated Jackpot amount into our Powerball calculator and choose your status and the calculator will handle the rest.

Once you are finished, see our article on the best lottery prediction software for tools which may substantially improve your chances of winning.

Mathematical Explanation of Powerball Calculator

As you might already know, if a player wins the Powerball jackpot, he or she must choose between a single lump sum or 30 annual payments for the prize.

Choosing the lump sum, also known as the cash option, reduces the size of the jackpot to around 61% of the initial amount, but gives it to the player at once. The annuity option, on the other hand, grants the winner the entire sum of the jackpot — beginning with an initial payment and the yearly installments over the following 29 years.

As the lump sum and the pension option grant different payments, it only follows that you have different tax liabilities for both of them (Federal tax + State tax).

The result of our Powerball calculator is a brief summary of your gross and net (after tax) income for both choices. You can make a better selection by comparing the two options.

Finally, as an added feature, our tool breaks the annuity option into a convenient payout schedule so you know how much each year you receive.

Note: Approximations are payouts. For example, large charitable donations, meaning reduced tax liabilities, can be written off.