Powerball Jackpot Analysis and Tax Calculations

Check out a payout analysis of the current Powerball jackpot below. You'll find out the advertised annuity and lump sum amounts, along with their ultimate worth after taking into account federal and state tax.

You can also view the Powerball annuity payout table further down, which details the amount a single winner of the jackpot would receive each year from their lucky win should they choose the annuity option. See the Payouts from the latest drawing.

Current Jackpot Analysis

The table to the right shows the advertised jackpot for the next drawing. It also works as a tax calculator, so that you can see how much is withheld, whether you want to take the annuity or the cash lump sum. The rate of federal tax varies from 24 percent to 37 percent depending on individual circumstances but will be the higher figure if you have no major reductions to your taxable income – such as large charitable contributions. Enter the state where you purchased your ticket to see how much more is taxed.

We've detected you're in Virginia so we've automatically applied the applicable state tax in the table below. If desired, you can change this value using the drop-down box.

Jackpot Type Annuity Cash Lump Sum
Initial Advertised Value $300,000,000.00 $159,200,000.00
Federal Tax: -$72,000,000.00 -$38,208,000.00
State Tax: -$12,000,000.00 -$6,368,000.00
Final Total* $216,000,000.00 $114,624,000.00

* Please Note: In addition to federal and state tax, some cities and counties may also levy an additional local income tax, which will be applied on top of all other tax. Check with your local authority to see if this applies to you.

Powerball Annuity Calculation Table

If you opt for the annuity payout you will receive the jackpot amount as a series of 30 annual payments over 29 years. The payouts are graduated so they increase 5 percent year-on-year. The annuity payout calculator below shows a breakdown of the gross annuity value for the current jackpot, and the applicable federal and state tax for each year.

Year Gross Annuity Value Federal Tax (24%) State Tax (4%) Net Total
1 $4,515,430.52 -$1,083,703.33 -$180,617.22 $3,251,109.98
2 $4,741,202.05 -$1,137,888.49 -$189,648.08 $3,413,665.48
3 $4,978,262.15 -$1,194,782.92 -$199,130.49 $3,584,348.75
4 $5,227,175.26 -$1,254,522.06 -$209,087.01 $3,763,566.19
5 $5,488,534.02 -$1,317,248.17 -$219,541.36 $3,951,744.50
6 $5,762,960.72 -$1,383,110.57 -$230,518.43 $4,149,331.72
7 $6,051,108.76 -$1,452,266.10 -$242,044.35 $4,356,798.31
8 $6,353,664.20 -$1,524,879.41 -$254,146.57 $4,574,638.22
9 $6,671,347.41 -$1,601,123.38 -$266,853.90 $4,803,370.13
10 $7,004,914.78 -$1,681,179.55 -$280,196.59 $5,043,538.64
11 $7,355,160.52 -$1,765,238.52 -$294,206.42 $5,295,715.57
12 $7,722,918.54 -$1,853,500.45 -$308,916.74 $5,560,501.35
13 $8,109,064.47 -$1,946,175.47 -$324,362.58 $5,838,526.42
14 $8,514,517.69 -$2,043,484.25 -$340,580.71 $6,130,452.74
15 $8,940,243.58 -$2,145,658.46 -$357,609.74 $6,436,975.38
16 $9,387,255.76 -$2,252,941.38 -$375,490.23 $6,758,824.15
17 $9,856,618.55 -$2,365,588.45 -$394,264.74 $7,096,765.35
18 $10,349,449.47 -$2,483,867.87 -$413,977.98 $7,451,603.62
19 $10,866,921.95 -$2,608,061.27 -$434,676.88 $7,824,183.80
20 $11,410,268.05 -$2,738,464.33 -$456,410.72 $8,215,392.99
21 $11,980,781.45 -$2,875,387.55 -$479,231.26 $8,626,162.64
22 $12,579,820.52 -$3,019,156.92 -$503,192.82 $9,057,470.77
23 $13,208,811.55 -$3,170,114.77 -$528,352.46 $9,510,344.31
24 $13,869,252.12 -$3,328,620.51 -$554,770.08 $9,985,861.53
25 $14,562,714.73 -$3,495,051.53 -$582,508.59 $10,485,154.60
26 $15,290,850.47 -$3,669,804.11 -$611,634.02 $11,009,412.34
27 $16,055,392.99 -$3,853,294.32 -$642,215.72 $11,559,882.95
28 $16,858,162.64 -$4,045,959.03 -$674,326.51 $12,137,877.10
29 $17,701,070.77 -$4,248,256.98 -$708,042.83 $12,744,770.95
30 $18,586,124.31 -$4,460,669.83 -$743,444.97 $13,382,009.50
TOTALS $300,000,000.00 -$72,000,000.00 -$12,000,000.00 $216,000,000.00

Cash or Annuity?

The majority of winners in recent years have opted for the cash lump sum. It provides a multimillion-dollar boost to the bank balance immediately, allowing you to make bigger purchases straight away. Making sensible investments could even lead to an even larger return than the annuity option.

The annuity option may not be as attractive for older players, but it does guarantee a very healthy income for the next three decades. If you take the annuity and die before the payments have finished, the remaining money gets paid to your estate.