Powerball
← Glossary
Tax Estimate
- What it is
- A rough estimate of how much of a jackpot you would keep after federal and state taxes.
- How it is calculated
- We take the advertised jackpot, apply the cash-option percentage you choose (or the first payment of a 30-payment annuity that grows 5% a year), then subtract an estimated 37% federal tax and a simple state rate. Lotteries withhold 24% federal up front on prizes over $5,000, which is only a down payment.
- How to read it
- The take-home figure is a ballpark. The line 'still owed at tax time' shows why the 24% withholding is usually not the whole bill.
- What it can't tell you
- Real tax depends on your other income, filing status, deductions, the state where you live or bought the ticket, and the rules in force when you win. This is not tax advice.
- Common misunderstanding
- 'The 24% taken at the counter is all the tax.' For a large prize the final federal rate can be much higher.
This site does not guarantee winning. Lottery draws are random and past results do not predict future results. Every chart here describes the past. It cannot raise your chances of winning.