Lottery Payout Calculator

The Lottery Payout Calculator enables users to estimate their net payout from a lottery jackpot by considering payment options (lump sum or annuity) and calculating applicable federal and state taxes.

Use Our Lottery Payout Calculator

How to Use the Lottery Payout Calculator

This step-by-step guide will help you navigate through the Lottery Payout Calculator to determine your potential lottery winnings after taxes. The calculator considers factors like payment options and tax brackets to give you an accurate estimate. Follow the instructions below:

Step 1: Enter the Jackpot Amount

  • Locate the input field labeled Jackpot Amount ($).
  • Enter the amount you plan to win in the lottery.
  • Ensure the amount is between $1,000,000 and $2,000,000,000 as those are the valid limits.

Step 2: Select a Payment Option

  • Find the input labeled Payment Option and choose from the dropdown menu.
  • You have two options: Lump Sum or 30-Year Annuity.
  • Choose Lump Sum if you prefer to receive a one-time payment, or 30-Year Annuity for spread-out annual payments over 30 years.

Step 3: Choose Your Federal Tax Bracket

  • Under Federal Tax Bracket, select the bracket that represents your tax situation from the dropdown options.
  • The categories are as follows:
    • 37% for income over $578,125
    • 35% for income between $231,251 and $578,125
    • 32% for income between $182,101 and $231,250

Step 4: Enter the State Tax Rate

  • In the field labeled State Tax Rate (%), input the tax rate applicable in your state.
  • The percentage should range between 0% and 13%.

Step 5: Review Your Results

  • Once all inputs are filled, the calculator will display the results:
  • Amount Before Taxes: The initial amount after selecting your payment option.
  • Federal Tax Amount: The tax to be deducted based on the federal tax bracket you selected.
  • State Tax Amount: The tax amount depending on your entered state tax rate.
  • Total Tax Amount: A summation of both federal and state taxes.
  • Net Payout: The final amount that you would receive after all taxes are subtracted.
  • Annual Payment (if annuity): Applicable only if the annuity option is chosen, showing your yearly payment for 30 years.

By following these steps, you can accurately estimate your net lottery winnings after taxes and fees.