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How much would you actually keep after taxes?
💡 The IRS automatically withholds $120,000,000 (24%) from your winnings. The remaining $64,958,188 is owed at tax time.
Lottery winnings are taxed as ordinary income at both the federal and state level. The federal government withholds 24% of winnings over $5,000 upfront, but your actual tax bill may be higher because lottery winnings can push you into the top 37% bracket.
The cash option (lump sum) is typically about 50-52% of the advertised annuity jackpot. When you see a "$1 billion jackpot," the cash value is usually around $500-520 million — and that's the amount that gets taxed.
State taxes vary widely: states like Florida, Texas, California, and Washington have no state income tax on lottery winnings, while New York (8.82%) and Hawaii (11%) take the largest share. Some cities also add local taxes — New York City residents pay an additional 3.876%.
This calculator provides an estimate based on 2026 federal tax brackets and state marginal rates. Your actual tax liability may vary based on deductions, other income, and changes to tax law. Consult a tax professional for advice specific to your situation.