Powerball Lump Sum Calculator – 2026
Find out the actual cash you would receive today after 2026 Federal and State taxes.
Lump Sum & Tax FAQs
The **Lump Sum** is the amount of money the lottery would have to invest today to pay the 30 annual installments of the annuity. In early 2026, higher interest rates mean the lottery needs less cash today to reach that future total, which is why the lump sum is currently closer to **45%** of the jackpot.
While the lottery office automatically withholds 24% of your prize, you are not off the hook. In 2026, the top tax bracket is 37% for single filers earning over $640,600. You will likely owe the remaining 13% when you file your tax return in 2027.
States with no state income tax—such as **Florida, Texas, South Dakota, Wyoming, and Nevada**—do not tax lottery prizes. Additionally, **California and Delaware** do not tax winnings from their state-specific lotteries.
Most financial experts suggest the **Lump Sum** because it allows for immediate investment. If you can earn an annual return higher than 4.5% (the current “discount rate” used by the lottery), you will mathematically end up with more money than the annuity would provide.
Withholding is what the lottery takes **before** they give you the check. Liability is what you **actually owe** the IRS. This calculator focuses on your total liability (37%) so you don’t spend money you’ll eventually need for the IRS.