Lottery Tax worksheet

1. Annuity after taxes (all payments): $63,972,943.75

1. Lump sum: tax the cash value with the 2026 brackets for married filing separately. Each slice of the prize is taxed at its own rate, up to 37%

   $\mathrm{\$12,400.00}\times \mathrm{10\%}+\mathrm{\$38,000.00}\times \mathrm{12\%}+\mathrm{\$55,300.00}\times \mathrm{22\%}+\mathrm{\$96,075.00}\times \mathrm{24\%}+\mathrm{\$54,450.00}\times \mathrm{32\%}+\mathrm{\$128,125.00}\times \mathrm{35\%}+\mathrm{\$47,115,650.00}\times \mathrm{37\%}$$=\mathrm{\$17,536,082.25}$

2. Lump sum: find the state tax at 0%

   $\mathrm{\$47,500,000.00}\times \mathrm{0\%}$$=\mathrm{\$0.00}$

3. Lump sum: subtract both taxes from the cash value to get what you keep

   $\mathrm{\$47,500,000.00}-\mathrm{\$17,536,082.25}-\mathrm{\$0.00}$$=\mathrm{\$29,963,917.75}$

4. Yearly payments: with no yearly increase, split the jackpot into 25 equal payments

   $\frac{\mathrm{\$100,000,000.00}}{25}$$=\mathrm{\$4,000,000.00}$

5. Yearly payments: tax each payment in the year you get it, using the same brackets, then add up the 25 years

   $\text{federal tax on 25 payments}$$=\mathrm{\$36,027,056.25}$

6. Yearly payments: the state tax is 0% of all the payments

   $\mathrm{\$100,000,000.00}\times \mathrm{0\%}$$=\mathrm{\$0.00}$

7. Yearly payments: subtract both taxes from the jackpot to get what you keep over all the years

   $\mathrm{\$100,000,000.00}-\mathrm{\$36,027,056.25}-\mathrm{\$0.00}$$=\mathrm{\$63,972,943.75}$

8. Compare the two: what the yearly payments leave, minus what the lump sum leaves

   $\mathrm{difference}$$=\mathrm{\$63,972,943.75}-\mathrm{\$29,963,917.75}$$=\mathrm{\$34,009,026.00}$

2. Lump sum after taxes: $25,200,000.00

1. Lump sum: find the federal tax withheld at 22% of the cash value

   $\mathrm{\$35,000,000.00}\times \mathrm{22\%}$$=\mathrm{\$7,700,000.00}$

2. Lump sum: find the state tax at 6%

   $\mathrm{\$35,000,000.00}\times \mathrm{6\%}$$=\mathrm{\$2,100,000.00}$

3. Lump sum: subtract both taxes from the cash value to get what you keep

   $\mathrm{\$35,000,000.00}-\mathrm{\$7,700,000.00}-\mathrm{\$2,100,000.00}$$=\mathrm{\$25,200,000.00}$

4. Yearly payments: find the first payment. Each payment is 5% bigger than the last, and all 25 add up to the jackpot (g is the yearly increase)

   $\frac{\mathrm{\$60,000,000.00}\times 0.05}{{\left(1+0.05\right)}^{25}-1}$$=\mathrm{\$1,257,147.44}$

5. Yearly payments: the last payment is the first one grown 24 times

   $\mathrm{\$1,257,147.44}\times {1.05}^{24}$$=\mathrm{\$4,054,426.13}$

6. Yearly payments: the payments add up to the jackpot, so the federal withholding is 22% of it

   $\mathrm{\$60,000,000.00}\times \mathrm{22\%}$$=\mathrm{\$13,200,000.00}$

7. Yearly payments: the state tax is 6% of all the payments

   $\mathrm{\$60,000,000.00}\times \mathrm{6\%}$$=\mathrm{\$3,600,000.00}$

8. Yearly payments: subtract both taxes from the jackpot to get what you keep over all the years

   $\mathrm{\$60,000,000.00}-\mathrm{\$13,200,000.00}-\mathrm{\$3,600,000.00}$$=\mathrm{\$43,200,000.00}$

9. Compare the two: what the yearly payments leave, minus what the lump sum leaves

   $\mathrm{difference}$$=\mathrm{\$43,200,000.00}-\mathrm{\$25,200,000.00}$$=\mathrm{\$18,000,000.00}$

3. Lump sum after taxes: $24,120,000.00

1. Lump sum: find the federal tax withheld at 30% of the cash value

   $\mathrm{\$36,000,000.00}\times \mathrm{30\%}$$=\mathrm{\$10,800,000.00}$

2. Lump sum: find the state tax at 3%

   $\mathrm{\$36,000,000.00}\times \mathrm{3\%}$$=\mathrm{\$1,080,000.00}$

3. Lump sum: subtract both taxes from the cash value to get what you keep

   $\mathrm{\$36,000,000.00}-\mathrm{\$10,800,000.00}-\mathrm{\$1,080,000.00}$$=\mathrm{\$24,120,000.00}$

4. Yearly payments: find the first payment. Each payment is 4% bigger than the last, and all 20 add up to the jackpot (g is the yearly increase)

   $\frac{\mathrm{\$66,000,000.00}\times 0.04}{{\left(1+0.04\right)}^{20}-1}$$=\mathrm{\$2,216,395.52}$

5. Yearly payments: the last payment is the first one grown 19 times

   $\mathrm{\$2,216,395.52}\times {1.04}^{19}$$=\mathrm{\$4,669,611.08}$

6. Yearly payments: the payments add up to the jackpot, so the federal withholding is 30% of it

   $\mathrm{\$66,000,000.00}\times \mathrm{30\%}$$=\mathrm{\$19,800,000.00}$

7. Yearly payments: the state tax is 3% of all the payments

   $\mathrm{\$66,000,000.00}\times \mathrm{3\%}$$=\mathrm{\$1,980,000.00}$

8. Yearly payments: subtract both taxes from the jackpot to get what you keep over all the years

   $\mathrm{\$66,000,000.00}-\mathrm{\$19,800,000.00}-\mathrm{\$1,980,000.00}$$=\mathrm{\$44,220,000.00}$

9. Compare the two: what the yearly payments leave, minus what the lump sum leaves

   $\mathrm{difference}$$=\mathrm{\$44,220,000.00}-\mathrm{\$24,120,000.00}$$=\mathrm{\$20,100,000.00}$

4. Lump sum after taxes: $21,287,500.00

1. Lump sum: find the federal tax withheld at 30% of the cash value

   $\mathrm{\$32,500,000.00}\times \mathrm{30\%}$$=\mathrm{\$9,750,000.00}$

2. Lump sum: find the state tax at 4.5%

   $\mathrm{\$32,500,000.00}\times \mathrm{4.5\%}$$=\mathrm{\$1,462,500.00}$

3. Lump sum: subtract both taxes from the cash value to get what you keep

   $\mathrm{\$32,500,000.00}-\mathrm{\$9,750,000.00}-\mathrm{\$1,462,500.00}$$=\mathrm{\$21,287,500.00}$

4. Yearly payments: find the first payment. Each payment is 5% bigger than the last, and all 20 add up to the jackpot (g is the yearly increase)

   $\frac{\mathrm{\$110,000,000.00}\times 0.05}{{\left(1+0.05\right)}^{20}-1}$$=\mathrm{\$3,326,684.59}$

5. Yearly payments: the last payment is the first one grown 19 times

   $\mathrm{\$3,326,684.59}\times {1.05}^{19}$$=\mathrm{\$8,406,366.28}$

6. Yearly payments: the payments add up to the jackpot, so the federal withholding is 30% of it

   $\mathrm{\$110,000,000.00}\times \mathrm{30\%}$$=\mathrm{\$33,000,000.00}$

7. Yearly payments: the state tax is 4.5% of all the payments

   $\mathrm{\$110,000,000.00}\times \mathrm{4.5\%}$$=\mathrm{\$4,950,000.00}$

8. Yearly payments: subtract both taxes from the jackpot to get what you keep over all the years

   $\mathrm{\$110,000,000.00}-\mathrm{\$33,000,000.00}-\mathrm{\$4,950,000.00}$$=\mathrm{\$72,050,000.00}$

9. Compare the two: what the yearly payments leave, minus what the lump sum leaves

   $\mathrm{difference}$$=\mathrm{\$72,050,000.00}-\mathrm{\$21,287,500.00}$$=\mathrm{\$50,762,500.00}$

5. Annuity after taxes (all payments): $33,692,020.00

1. Lump sum: tax the cash value with the 2026 brackets for head of household. Each slice of the prize is taxed at its own rate, up to 37%

   $\mathrm{\$17,700.00}\times \mathrm{10\%}+\mathrm{\$49,750.00}\times \mathrm{12\%}+\mathrm{\$38,250.00}\times \mathrm{22\%}+\mathrm{\$96,050.00}\times \mathrm{24\%}+\mathrm{\$54,450.00}\times \mathrm{32\%}+\mathrm{\$384,400.00}\times \mathrm{35\%}+\mathrm{\$37,359,400.00}\times \mathrm{37\%}$$=\mathrm{\$14,014,149.00}$

2. Lump sum: find the state tax at 6%

   $\mathrm{\$38,000,000.00}\times \mathrm{6\%}$$=\mathrm{\$2,280,000.00}$

3. Lump sum: subtract both taxes from the cash value to get what you keep

   $\mathrm{\$38,000,000.00}-\mathrm{\$14,014,149.00}-\mathrm{\$2,280,000.00}$$=\mathrm{\$21,705,851.00}$

4. Yearly payments: find the first payment. Each payment is 5% bigger than the last, and all 20 add up to the jackpot (g is the yearly increase)

   $\frac{\mathrm{\$57,500,000.00}\times 0.05}{{\left(1+0.05\right)}^{20}-1}$$=\mathrm{\$1,738,948.76}$

5. Yearly payments: the last payment is the first one grown 19 times

   $\mathrm{\$1,738,948.76}\times {1.05}^{19}$$=\mathrm{\$4,394,236.92}$

6. Yearly payments: tax each payment in the year you get it, using the same brackets, then add up the 20 years

   $\text{federal tax on 20 payments}$$=\mathrm{\$20,357,980.00}$

7. Yearly payments: the state tax is 6% of all the payments

   $\mathrm{\$57,500,000.00}\times \mathrm{6\%}$$=\mathrm{\$3,450,000.00}$

8. Yearly payments: subtract both taxes from the jackpot to get what you keep over all the years

   $\mathrm{\$57,500,000.00}-\mathrm{\$20,357,980.00}-\mathrm{\$3,450,000.00}$$=\mathrm{\$33,692,020.00}$

9. Compare the two: what the yearly payments leave, minus what the lump sum leaves

   $\mathrm{difference}$$=\mathrm{\$33,692,020.00}-\mathrm{\$21,705,851.00}$$=\mathrm{\$11,986,169.00}$

6. Lump sum after taxes: $18,563,917.75

1. Lump sum: tax the cash value with the 2026 brackets for married filing separately. Each slice of the prize is taxed at its own rate, up to 37%

   $\mathrm{\$12,400.00}\times \mathrm{10\%}+\mathrm{\$38,000.00}\times \mathrm{12\%}+\mathrm{\$55,300.00}\times \mathrm{22\%}+\mathrm{\$96,075.00}\times \mathrm{24\%}+\mathrm{\$54,450.00}\times \mathrm{32\%}+\mathrm{\$128,125.00}\times \mathrm{35\%}+\mathrm{\$32,115,650.00}\times \mathrm{37\%}$$=\mathrm{\$11,986,082.25}$

2. Lump sum: find the state tax at 6%

   $\mathrm{\$32,500,000.00}\times \mathrm{6\%}$$=\mathrm{\$1,950,000.00}$

3. Lump sum: subtract both taxes from the cash value to get what you keep

   $\mathrm{\$32,500,000.00}-\mathrm{\$11,986,082.25}-\mathrm{\$1,950,000.00}$$=\mathrm{\$18,563,917.75}$

4. Yearly payments: find the first payment. Each payment is 4% bigger than the last, and all 20 add up to the jackpot (g is the yearly increase)

   $\frac{\mathrm{\$66,000,000.00}\times 0.04}{{\left(1+0.04\right)}^{20}-1}$$=\mathrm{\$2,216,395.52}$

5. Yearly payments: the last payment is the first one grown 19 times

   $\mathrm{\$2,216,395.52}\times {1.04}^{19}$$=\mathrm{\$4,669,611.08}$

6. Yearly payments: tax each payment in the year you get it, using the same brackets, then add up the 20 years

   $\text{federal tax on 20 payments}$$=\mathrm{\$23,641,645.00}$

7. Yearly payments: the state tax is 6% of all the payments

   $\mathrm{\$66,000,000.00}\times \mathrm{6\%}$$=\mathrm{\$3,960,000.00}$

8. Yearly payments: subtract both taxes from the jackpot to get what you keep over all the years

   $\mathrm{\$66,000,000.00}-\mathrm{\$23,641,645.00}-\mathrm{\$3,960,000.00}$$=\mathrm{\$38,398,355.00}$

9. Compare the two: what the yearly payments leave, minus what the lump sum leaves

   $\mathrm{difference}$$=\mathrm{\$38,398,355.00}-\mathrm{\$18,563,917.75}$$=\mathrm{\$19,834,437.25}$

7. Annuity after taxes (all payments): $55,100,000.00

1. Lump sum: find the federal tax withheld at 21% of the cash value

   $\mathrm{\$40,000,000.00}\times \mathrm{21\%}$$=\mathrm{\$8,400,000.00}$

2. Lump sum: find the state tax at 3%

   $\mathrm{\$40,000,000.00}\times \mathrm{3\%}$$=\mathrm{\$1,200,000.00}$

3. Lump sum: subtract both taxes from the cash value to get what you keep

   $\mathrm{\$40,000,000.00}-\mathrm{\$8,400,000.00}-\mathrm{\$1,200,000.00}$$=\mathrm{\$30,400,000.00}$

4. Yearly payments: find the first payment. Each payment is 5% bigger than the last, and all 30 add up to the jackpot (g is the yearly increase)

   $\frac{\mathrm{\$72,500,000.00}\times 0.05}{{\left(1+0.05\right)}^{30}-1}$$=\mathrm{\$1,091,229.04}$

5. Yearly payments: the last payment is the first one grown 29 times

   $\mathrm{\$1,091,229.04}\times {1.05}^{29}$$=\mathrm{\$4,491,646.71}$

6. Yearly payments: the payments add up to the jackpot, so the federal withholding is 21% of it

   $\mathrm{\$72,500,000.00}\times \mathrm{21\%}$$=\mathrm{\$15,225,000.00}$

7. Yearly payments: the state tax is 3% of all the payments

   $\mathrm{\$72,500,000.00}\times \mathrm{3\%}$$=\mathrm{\$2,175,000.00}$

8. Yearly payments: subtract both taxes from the jackpot to get what you keep over all the years

   $\mathrm{\$72,500,000.00}-\mathrm{\$15,225,000.00}-\mathrm{\$2,175,000.00}$$=\mathrm{\$55,100,000.00}$

9. Compare the two: what the yearly payments leave, minus what the lump sum leaves

   $\mathrm{difference}$$=\mathrm{\$55,100,000.00}-\mathrm{\$30,400,000.00}$$=\mathrm{\$24,700,000.00}$

8. Annuity after taxes (all payments): $63,917,020.00

1. Lump sum: tax the cash value with the 2026 brackets for head of household. Each slice of the prize is taxed at its own rate, up to 37%

   $\mathrm{\$17,700.00}\times \mathrm{10\%}+\mathrm{\$49,750.00}\times \mathrm{12\%}+\mathrm{\$38,250.00}\times \mathrm{22\%}+\mathrm{\$96,050.00}\times \mathrm{24\%}+\mathrm{\$54,450.00}\times \mathrm{32\%}+\mathrm{\$384,400.00}\times \mathrm{35\%}+\mathrm{\$33,359,400.00}\times \mathrm{37\%}$$=\mathrm{\$12,534,149.00}$

2. Lump sum: find the state tax at 0%

   $\mathrm{\$34,000,000.00}\times \mathrm{0\%}$$=\mathrm{\$0.00}$

3. Lump sum: subtract both taxes from the cash value to get what you keep

   $\mathrm{\$34,000,000.00}-\mathrm{\$12,534,149.00}-\mathrm{\$0.00}$$=\mathrm{\$21,465,851.00}$

4. Yearly payments: with no yearly increase, split the jackpot into 20 equal payments

   $\frac{\mathrm{\$100,000,000.00}}{20}$$=\mathrm{\$5,000,000.00}$

5. Yearly payments: tax each payment in the year you get it, using the same brackets, then add up the 20 years

   $\text{federal tax on 20 payments}$$=\mathrm{\$36,082,980.00}$

6. Yearly payments: the state tax is 0% of all the payments

   $\mathrm{\$100,000,000.00}\times \mathrm{0\%}$$=\mathrm{\$0.00}$

7. Yearly payments: subtract both taxes from the jackpot to get what you keep over all the years

   $\mathrm{\$100,000,000.00}-\mathrm{\$36,082,980.00}-\mathrm{\$0.00}$$=\mathrm{\$63,917,020.00}$

8. Compare the two: what the yearly payments leave, minus what the lump sum leaves

   $\mathrm{difference}$$=\mathrm{\$63,917,020.00}-\mathrm{\$21,465,851.00}$$=\mathrm{\$42,451,169.00}$

9. Lump sum after taxes: $31,500,000.00

1. Lump sum: find the federal tax withheld at 30% of the cash value

   $\mathrm{\$45,000,000.00}\times \mathrm{30\%}$$=\mathrm{\$13,500,000.00}$

2. Lump sum: find the state tax at 0%

   $\mathrm{\$45,000,000.00}\times \mathrm{0\%}$$=\mathrm{\$0.00}$

3. Lump sum: subtract both taxes from the cash value to get what you keep

   $\mathrm{\$45,000,000.00}-\mathrm{\$13,500,000.00}-\mathrm{\$0.00}$$=\mathrm{\$31,500,000.00}$

4. Yearly payments: with no yearly increase, split the jackpot into 25 equal payments

   $\frac{\mathrm{\$72,500,000.00}}{25}$$=\mathrm{\$2,900,000.00}$

5. Yearly payments: the payments add up to the jackpot, so the federal withholding is 30% of it

   $\mathrm{\$72,500,000.00}\times \mathrm{30\%}$$=\mathrm{\$21,750,000.00}$

6. Yearly payments: the state tax is 0% of all the payments

   $\mathrm{\$72,500,000.00}\times \mathrm{0\%}$$=\mathrm{\$0.00}$

7. Yearly payments: subtract both taxes from the jackpot to get what you keep over all the years

   $\mathrm{\$72,500,000.00}-\mathrm{\$21,750,000.00}-\mathrm{\$0.00}$$=\mathrm{\$50,750,000.00}$

8. Compare the two: what the yearly payments leave, minus what the lump sum leaves

   $\mathrm{difference}$$=\mathrm{\$50,750,000.00}-\mathrm{\$31,500,000.00}$$=\mathrm{\$19,250,000.00}$

10. Annuity after taxes (all payments): $56,800,000.00

1. Lump sum: find the federal tax withheld at 23% of the cash value

   $\mathrm{\$35,000,000.00}\times \mathrm{23\%}$$=\mathrm{\$8,050,000.00}$

2. Lump sum: find the state tax at 6%

   $\mathrm{\$35,000,000.00}\times \mathrm{6\%}$$=\mathrm{\$2,100,000.00}$

3. Lump sum: subtract both taxes from the cash value to get what you keep

   $\mathrm{\$35,000,000.00}-\mathrm{\$8,050,000.00}-\mathrm{\$2,100,000.00}$$=\mathrm{\$24,850,000.00}$

4. Yearly payments: find the first payment. Each payment is 4% bigger than the last, and all 30 add up to the jackpot (g is the yearly increase)

   $\frac{\mathrm{\$80,000,000.00}\times 0.04}{{\left(1+0.04\right)}^{30}-1}$$=\mathrm{\$1,426,407.93}$

5. Yearly payments: the last payment is the first one grown 29 times

   $\mathrm{\$1,426,407.93}\times {1.04}^{29}$$=\mathrm{\$4,448,469.16}$

6. Yearly payments: the payments add up to the jackpot, so the federal withholding is 23% of it

   $\mathrm{\$80,000,000.00}\times \mathrm{23\%}$$=\mathrm{\$18,400,000.00}$

7. Yearly payments: the state tax is 6% of all the payments

   $\mathrm{\$80,000,000.00}\times \mathrm{6\%}$$=\mathrm{\$4,800,000.00}$

8. Yearly payments: subtract both taxes from the jackpot to get what you keep over all the years

   $\mathrm{\$80,000,000.00}-\mathrm{\$18,400,000.00}-\mathrm{\$4,800,000.00}$$=\mathrm{\$56,800,000.00}$

9. Compare the two: what the yearly payments leave, minus what the lump sum leaves

   $\mathrm{difference}$$=\mathrm{\$56,800,000.00}-\mathrm{\$24,850,000.00}$$=\mathrm{\$31,950,000.00}$