How much of the jackpot do you actually keep?
The advertised jackpot is the total of a 30-year annuity. Take the lump sum and you get the cash value instead — at today's interest rates about 41% of the headline number. Federal income tax takes 37% at the top bracket (24% is withheld when you claim; the rest is due when you file), and your state takes between 0% and 10.9%.
At the current $467M Powerball jackpot the cash value is $192.4M: a winner in Florida or Texas keeps about $121.2M, a New York winner about $100.2M. See the after-tax payout in every state →
Lump sum or annuity?
The annuity pays 30 checks over 29 years, each 5% larger than the last — the first is about 1.5% of the advertised jackpot, the last about 6.2%. Each check is taxed in the year it arrives, so a winner in a no-tax state keeps about 63% of the full jackpot over three decades.
The annuity's growth works out to roughly what long-term Treasury bonds pay, so the trade-off is simple: take the cash if you'll invest it at least that well, and take the annuity if you want a paycheck you can't blow in one bad year. Run both in the planner above and compare the 30-year projections side by side.
Which states don't tax lottery winnings?
Eight states that sell tickets don't tax the win: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. California is the odd one out — it exempts lottery prizes but taxes the investment income you earn afterward at up to 13.3%, and the planner models exactly that.
The biggest bites: New York at 10.9% (New York City residents owe roughly 3.9% more), then New Jersey and Washington, D.C. at 10.75%. Five states don't sell Powerball or Mega Millions at all: Alabama, Alaska, Hawaii, Nevada and Utah.
What are the odds of winning the lottery?
Powerball: 1 in 292,201,338 for the jackpot and 1 in 24.87 for any prize. Mega Millions: 1 in 290,472,336 and 1 in 23.08. Playing every single drawing, the average wait for a Powerball jackpot is about 1.9 million years — 2.8 million for Mega Millions, which draws twice a week.
The small prizes don't close the gap: across millions of tickets they return about 16¢ per dollar on Powerball and about 22¢ on Mega Millions, multiplier included. Even counting the current Powerball jackpot at its after-tax cash value, a $2 ticket is worth about 73¢. Play it out in the simulator and watch it happen.
How the Jackpot Simulator works
Pick a game — or bring your own number, like an inheritance, a business sale or a stock windfall — and your state. The console computes your real after-tax proceeds, then hands you every dollar to place: Treasuries at today's yield for the term you choose, index funds, rental real estate, tax-free municipal bonds, and a catalog of 177 real-priced homes, cars, jets, yachts, watches, jewels and collectibles, each with honest upkeep and depreciation.
Staff payroll, family support, trusts, giving and debts all roll into one monthly number, and a 30-year projection tells you whether the plan survives — or the year the money runs out. Move to a no-tax state, switch to the annuity, compare two plans side by side and print the whole thing as a one-page PDF. It's free, there's no signup, and your plan stays in your own browser.
How much would I take home from a $1 billion jackpot?
It depends on the cash value, which moves with interest rates and has recently run about 40–45% of the advertised jackpot. At 41%, a $1 billion jackpot pays about $410 million in cash. After the 37% federal rate that's about $258 million in a state with no lottery tax, or about $214 million in New York. The annuity pays the full $1 billion over 30 years — about $630 million after federal tax.
Do you pay taxes on lottery winnings every year?
A lump sum is taxed once, in the year you claim it. With the annuity, each of the 30 payments is taxed in the year you receive it. Either way, the money you invest afterward keeps producing taxable income — interest, dividends and rents — every year, which is why where you live after you win still matters.
Which states don't tax lottery winnings?
California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming don't tax lottery prizes. Alabama, Alaska, Hawaii, Nevada and Utah don't sell Powerball or Mega Millions.
Can you stay anonymous if you win the lottery?
It depends on the state. A minority of states let jackpot winners keep their names private — some only above a prize threshold or through a trust — and most publish winners' names. Check your state lottery's rules, and talk to a lawyer, before you claim.
What should you do first if you win the lottery?
Sign the back of the ticket, photograph it and lock it up. Then slow down: you usually have months to claim, though deadlines vary by state. Before you do, line up a tax attorney, a CPA and a fee-only fiduciary financial advisor, decide between the lump sum and the annuity, and tell as few people as possible.
Are quick picks better than choosing your own numbers?
No — every combination has exactly the same odds. The only difference is how many people share your numbers: birthdays and simple patterns are popular, so if they hit, you're more likely to split the jackpot.
How does the lottery simulator work?
Each drawing picks five white balls and one Powerball or Mega Ball under the official 2026 rules — Powerball's 69 and 26 numbers at $2, Mega Millions' 70 and 24 numbers at $5 with its built-in 2X–10X multiplier — using a cryptographically seeded random number generator. Prizes and multiplier odds come from the official prize charts, and the simulated results converge on the published odds.
Is the Jackpot Simulator free?
Yes. There's no signup, and your plan is saved only in your own browser. It's for illustration and entertainment — not financial, tax or legal advice.