$1 Billion Jackpot After Taxes: Take-Home Pay in Every State (2026)

Jackpot Taxes

Rates as of October 30, 2026 · 2026 federal tax brackets

The advertised $1 billion jackpot is the total of 30 yearly annuity payments. Choose the cash option instead and you get about $422,406,639 before tax. After federal income tax, a winner in a tax-free state such as Texas or Florida takes home about $266,166,182. In New York, the highest-tax lottery state, it is about $220,123,859.

The cash value is estimated from the 30-year U.S. Treasury yield (5.31% on October 30, 2026), which is how the lotteries price it. The official cash value for each draw is published by the lottery and can differ slightly.

Cash value (before tax)

$422.4M

42.2% of the advertised jackpot

Federal income tax

$156.2M

37% effective · 24% withheld at claim

Take-home, tax-free state

$266.2M

Lump sum, e.g. Texas or Florida

Take-home, New York

$220.1M

Lump sum, 10.9% state tax

Lump Sum vs Annuity for a $1 Billion Jackpot

Tax-free state	Before tax	Federal tax	After tax
Lump sum (paid now)	$422,406,639	-$156,240,457	$266,166,182
Annuity, first payment	$15,051,435	-$5,519,031	$9,532,404
Annuity, all 30 payments	$1,000,000,000	-$368,500,008	$631,499,993

Each annuity payment is 5% bigger than the one before, so the last one is about $39.1 million after tax. Choosing the annuity is like investing the after-tax lump sum at a 5.51% yearly return, with no investment risk. The lump sum only wins if you can beat that return after paying tax on your investment gains. Read the full lump sum vs annuity guide.

$1 Billion Jackpot Take-Home in Every State

Sorted from the most to the least you keep. Annuity figures are after federal and state tax. Tap a state for its full payout calculator, prize-claim rules and anonymity laws.

State	State tax	Lump sum after tax	Annuity per year (first)	Annuity total after tax
Alaska (no lottery)	None	$266,166,182	$9,532,404	$631,499,993
California	None	$266,166,182	$9,532,404	$631,499,993
Florida	None	$266,166,182	$9,532,404	$631,499,993
Nevada (no lottery)	None	$266,166,182	$9,532,404	$631,499,993
New Hampshire	None	$266,166,182	$9,532,404	$631,499,993
South Dakota	None	$266,166,182	$9,532,404	$631,499,993
Tennessee	None	$266,166,182	$9,532,404	$631,499,993
Texas	None	$266,166,182	$9,532,404	$631,499,993
Washington	None	$266,166,182	$9,532,404	$631,499,993
Wyoming	None	$266,166,182	$9,532,404	$631,499,993
Arizona	2.5%	$255,606,016	$9,156,118	$606,499,993
North Dakota	2.5%	$255,606,016	$9,156,118	$606,499,993
Ohio	2.75%	$254,550,000	$9,118,489	$603,999,993
Indiana	2.95%	$253,705,186	$9,088,387	$601,999,993
Louisiana	3%	$253,493,983	$9,080,861	$601,499,993
Pennsylvania	3.07%	$253,198,299	$9,070,325	$600,799,993
Kentucky	3.5%	$251,381,950	$9,005,604	$596,499,992
Arkansas	3.7%	$250,537,137	$8,975,501	$594,499,993
Iowa	3.8%	$250,114,730	$8,960,449	$593,499,993
North Carolina	3.99%	$249,312,157	$8,931,852	$591,599,993
Mississippi	4%	$249,269,917	$8,930,346	$591,499,993
Michigan	4.25%	$248,213,900	$8,892,718	$588,999,993
Colorado	4.4%	$247,580,290	$8,870,141	$587,499,993
Utah (no lottery)	4.45%	$247,369,087	$8,862,615	$586,999,993
Oklahoma	4.5%	$247,157,884	$8,855,089	$586,499,993
Nebraska	4.55%	$246,946,680	$8,847,564	$585,999,992
West Virginia	4.58%	$246,819,958	$8,843,048	$585,699,993
Missouri	4.7%	$246,313,070	$8,824,986	$584,499,993
Illinois	4.95%	$245,257,054	$8,787,358	$581,999,992
Georgia	4.99%	$245,088,091	$8,781,337	$581,599,993
Alabama (no lottery)	5%	$245,045,850	$8,779,832	$581,499,993
South Carolina	5.21%	$244,158,796	$8,748,224	$579,399,993
Idaho	5.3%	$243,778,630	$8,734,678	$578,499,992
Kansas	5.58%	$242,595,892	$8,692,534	$575,699,993
Montana	5.65%	$242,300,207	$8,681,998	$574,999,992
Virginia	5.75%	$241,877,801	$8,666,946	$573,999,993
New Mexico	5.9%	$241,244,191	$8,644,369	$572,499,993
Rhode Island	5.99%	$240,864,025	$8,630,823	$571,599,993
Maryland	6.5%	$238,709,751	$8,554,061	$566,499,993
Delaware	6.6%	$238,287,344	$8,539,009	$565,499,993
Connecticut	6.99%	$236,639,958	$8,480,309	$561,599,993
Wisconsin	7.65%	$233,852,074	$8,380,969	$554,999,993
Vermont	8.75%	$229,205,601	$8,215,403	$543,999,993
Massachusetts	9%	$228,149,585	$8,177,775	$541,499,993
Maine	9.15%	$227,515,975	$8,155,198	$539,999,993
Minnesota	9.85%	$224,559,128	$8,049,837	$532,999,992
Oregon	9.9%	$224,347,925	$8,042,312	$532,499,993
District of Columbia	10.75%	$220,757,469	$7,914,375	$523,999,993
New Jersey	10.75%	$220,757,469	$7,914,375	$523,999,993
New York	10.9%	$220,123,859	$7,891,797	$522,499,993
Hawaii (no lottery)	11%	$219,701,452	$7,876,746	$521,499,993
Puerto Rico	20%	$181,684,855	$6,522,117	$431,499,993

States with no lottery are shown for residents who win in another state: their home state taxes the prize. City taxes (for example New York City's 3.876%) are not included.

How the Federal Tax Works

Lottery winnings are ordinary income. When you claim, the lottery withholds 24% for the IRS ($101,377,593 on the cash option). But a prize this size is taxed mostly at the top 37% rate, so about $54,862,863 more is due when you file. Plan for it: many winners spend the withheld amount as if it were final. The 2026 brackets give everyone the same lower rates on the first $656,700 of income, which is why the effective rate is 36.99% rather than 37%.

Frequently Asked Questions

How much is a $1 billion jackpot after taxes?

Taken as cash, a $1 billion Powerball or Mega Millions jackpot is worth about $422.4 million before tax. After 2026 federal income tax (about $156.2 million), a winner keeps about $266.2 million in a state with no lottery tax, such as Texas or Florida, and about $220.1 million in New York (10.9% state tax). Taken as a 30-year annuity, the after-tax total is about $631.5 million in a tax-free state.

How much tax is withheld when you claim the prize?

The lottery withholds 24% federal tax ($101.4 million on the cash option) plus state tax in most states. The top federal rate is 37%, so the winner owes roughly another $54.9 million when filing their tax return.

Which states do not tax lottery winnings?

California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming do not tax Powerball or Mega Millions winnings. Alaska and Nevada have no income tax but also no lottery. If you live in a state with income tax, buying your ticket in a tax-free state does not avoid your home state's tax.

Is the lump sum or the annuity better?

In a tax-free state the annuity pays about $631.5 million after tax over 30 years, versus $266.2 million now with the lump sum. That works out to a 5.51% yearly return on the after-tax lump sum. Taking the cash only comes out ahead if you can invest it at more than that, after tax on the gains.

Other Jackpot Sizes

$100 Million after taxes $200 Million after taxes $300 Million after taxes $400 Million after taxes $500 Million after taxes $600 Million after taxes $750 Million after taxes $1.5 Billion after taxes $2 Billion after taxes

For education only, not tax or financial advice. Cash values are estimates: each lottery publishes the official cash value for every draw. Federal tax assumes a single filer with no other income; state rates were verified in October 2026. Speak to a licensed tax professional before claiming a prize.