See what you actually take home after federal and state taxes. Lump sum vs annuity comparison.
| Item | Amount | Rate |
|---|---|---|
| Federal Withholding (immediate) | — | 24% |
| Federal Top Marginal Tax | — | — |
| State Tax | — | — |
| Take-Home | — | — |
Lottery winnings are ordinary income — taxed at your marginal rate. The IRS immediately withholds 24%, but winnings over ~$578K (single) or ~$693K (married) get taxed at the 37% top rate.
Lump sum jackpots are typically ~60% of the advertised amount before tax. So a $100M jackpot = $60M lump sum = ~$38-42M after federal + state taxes.
Annuity pays the full amount over 30 years but you lose the time value of money — and future tax rates are unknown.