Worked example: all 30 payments on a $500 million jackpot
Example only: Texas resident, no state lottery tax, 37% federal planning estimate for each payment, and today's rates held constant. The annuity totals $500 million before tax. Cash is estimated at 42.86% of that total; use the published cash value in the controls when you have it. Dollar values are rounded for display; unrounded payments total the jackpot.
| Payment | Before tax | Federal estimate | After tax |
|---|---|---|---|
| 1 | $7.5M | $2.8M | $4.7M |
| 2 | $7.9M | $2.9M | $5.0M |
| 3 | $8.3M | $3.1M | $5.2M |
| 4 | $8.7M | $3.2M | $5.5M |
| 5 | $9.1M | $3.4M | $5.8M |
| 6 | $9.6M | $3.6M | $6.1M |
| 7 | $10.1M | $3.7M | $6.4M |
| 8 | $10.6M | $3.9M | $6.7M |
| 9 | $11.1M | $4.1M | $7.0M |
| 10 | $11.7M | $4.3M | $7.4M |
| 11 | $12.3M | $4.5M | $7.7M |
| 12 | $12.9M | $4.8M | $8.1M |
| 13 | $13.5M | $5.0M | $8.5M |
| 14 | $14.2M | $5.3M | $8.9M |
| 15 | $14.9M | $5.5M | $9.4M |
| 16 | $15.6M | $5.8M | $9.9M |
| 17 | $16.4M | $6.1M | $10.3M |
| 18 | $17.2M | $6.4M | $10.9M |
| 19 | $18.1M | $6.7M | $11.4M |
| 20 | $19.0M | $7.0M | $12.0M |
| 21 | $20.0M | $7.4M | $12.6M |
| 22 | $21.0M | $7.8M | $13.2M |
| 23 | $22.0M | $8.1M | $13.9M |
| 24 | $23.1M | $8.6M | $14.6M |
| 25 | $24.3M | $9.0M | $15.3M |
| 26 | $25.5M | $9.4M | $16.1M |
| 27 | $26.8M | $9.9M | $16.9M |
| 28 | $28.1M | $10.4M | $17.7M |
| 29 | $29.5M | $10.9M | $18.6M |
| 30 | $31.0M | $11.5M | $19.5M |
| Choice | Before tax total | After tax total |
|---|---|---|
| Cash now (estimated) | $214.3M | $135.0M |
| 30-payment annuity | $500.0M | $315.0M |
Why payments rise by 5% each year
The advertised jackpot is the sum of a growing payment series. Dividing it by 30 would give the wrong first payment. The calculator solves for a starting payment whose 30 growing installments add up to the advertised total. Later checks are larger in nominal dollars, but inflation can reduce their buying power.
Cash today versus a total paid over time
The annuity total and the cash option arrive on different schedules. Comparing their totals alone does not account for investment returns, inflation or the value of having money today. The cash figure is a separate lottery payout, not the jackpot minus tax. Read how lottery cash value is calculated before entering a custom value.
How tax applies to annual payments
Each payment is income for its payment year. Future tax rates can change. The tool holds current rates constant and applies the 37% top federal rate across the full payment, so it is a conservative estimate rather than a personal bracket calculation. Federal withholding is 24% when proceeds exceed $5,000; withholding is a prepayment, not your final tax. State and local tax may also apply.
Annuity questions
Are there 30 payments or 30 years after the first check?
There are 30 payments: one immediate payment and 29 annual payments. The last payment comes 29 years after the first.
Does this lottery annuity calculator discount future payments?
No. It displays nominal payment amounts and after-tax totals. It does not assume an investment return or estimate present value.
Can I see the schedule without a download?
Yes. All 30 example payments are in the plain HTML table. The comparison above also shows an expandable schedule for your selected amount and state.
Mega Millions tax calculator and multiplier prizes
Related tools and guides
Powerball tax calculator ? General tax calculator ? Lump sum vs annuity ? Selling annuity payments
Sources
Checked November 5, 2026: Mega Millions payment structure (30 payments, 5% growth), Powerball payout choices, IRS withholding instructions (2026). The methodology links the 2026 federal rate source; the state guides below carry dated rate sources. Estimates, not tax advice.