Powerball Payout Calculator
Calculate your winnings after Federal and State taxes based on 2026 tax laws.
Taxes & Powerball FAQ
The advertised jackpot is the **annuity value**. If you take the “Cash Option” (Lump Sum), the amount is immediately reduced by roughly 40-50%. On top of that, the IRS takes a mandatory 24% immediately, and state taxes vary by location.
In 2026, states with no state income tax—such as **Florida, Texas, Nevada, South Dakota, Washington, and Wyoming**—do not tax lottery prizes. Additionally, **California and Delaware** exempt their state lottery winnings from state income tax.
Yes. Any prize over $5,000 is subject to federal withholding. Even a $1 Million win is considered taxable income, meaning you will actually receive closer to $630,000 after federal taxes (37%) are settled.
Power Play increases your gross winnings, but since your tax bracket is based on your total income, winning more means paying more in total dollars. The tax percentage remains tied to your total annual earnings.
Usually, the state where the ticket was **purchased** withholds the tax. However, your home state may also tax the income, often providing a credit for taxes already paid to the other state to avoid double-taxation.