How it's calculated
Take-home = cash − federal tax − cash × state rate
cash = jackpot × cash-value % (lump sum), federal tax from 2025 graduated brackets, state rate = flat state income-tax rate. Annuity sums 30 graduated yearly payments.
Common questions
Should I take the lump sum or the annuity?
The lump sum is a smaller upfront cash value, while the annuity pays the full jackpot over 30 years with 5 percent yearly increases. The right choice depends on taxes, investing, and your needs.
How much tax comes out of a jackpot?
Federal withholding starts at 24 percent but the top bracket is higher, and most states add their own tax. New York City residents owe an extra local tax too.