Why we built LottoTax
Every time a Powerball or Mega Millions jackpot climbs, millions of people type the same question into Google: “If I win, how much do I actually get?” The advertised number is never the real number. The IRS takes its share, your state takes another slice, and the difference between the lump sum and the annuity confuses even smart, financially savvy players. We built this site to answer that question in seconds, with real math, for every state in the country.
What makes this calculator different
Most lottery calculators stop at the headline numbers: a flat 37% federal rate and a generic state guess. Our engine goes further. It uses the actual 2026 federal income tax brackets, applies the standard deduction, computes your state tax from state-specific brackets (including graduated states like New York, California, New Jersey and Maryland), and models the 30-year annuity payment-by-payment — because each annuity check is taxed in the year you receive it. On top of that, it shows the initial withholding you’ll see at the lottery office versus the true tax you’ll owe in April, which is the gap that surprises most winners.
How we keep it accurate
Federal brackets and the standard deduction follow IRS Revenue Procedure 2025-32 for tax year 2026. State rates and brackets follow the Tax Foundation’s compilation of state tax statutes as of January 1, 2026, and we review them once a year — or sooner when a state changes its law. Withholding figures reflect published state lottery practices. Even so, every estimate on this site comes with a disclaimer: this is educational content, not tax advice, and a jackpot is exactly the moment to hire a great CPA.
Editorial standards
We do not sell tickets, we do not run ads for offshore lottery couriers, and we do not pretend a jackpot is an investment plan. Our content is written to be clear, neutral and useful: what the law says, what the numbers are, and what real winners should think about — from signing the ticket to setting up the trust. If you spot an error, use our contact page; we correct mistakes fast and note the update date.
The people behind the site
LottoTax is maintained by a small team of finance writers and tax nerds who have covered lottery payouts, annuities and state tax policy for years. We are not affiliated with the Multi-State Lottery Association, Powerball, Mega Millions, or any state lottery commission. Powerball and Mega Millions are trademarks of their respective organizations, used here for identification purposes only.