Lottery Tax Calculator
Calculate taxes on lottery winnings
Lottery Details
Tax Summary
$348,000.00
After-Tax Winnings
Gross Winnings$1,000,000.00
60% of advertised jackpot
Federal Tax$222,000.00
37% federal tax rate
State Tax$30,000.00
5% state tax rate
Total Tax$252,000.00
25.2% effective tax rate
Understanding Lottery Taxes
Payment Options
- • Lump Sum: ~60% of advertised jackpot
- • Annuity: Full amount over 20-40 years
- • Both options subject to taxes
- • Consider time value of money
- • Investment opportunities vary
Tax Considerations
- • Federal tax rate: 37% for large winnings
- • State taxes vary by location
- • Withholding may be required
- • Tax brackets may change
- • Consider estate planning
Financial Planning Tips
Immediate Steps
- • Secure the ticket
- • Contact legal advisor
- • Plan for taxes
- • Consider anonymity
- • Set up security
Long-term Planning
- • Investment strategy
- • Estate planning
- • Tax planning
- • Charitable giving
- • Retirement planning
Common Mistakes
- • Overspending early
- • Ignoring taxes
- • Poor investment choices
- • Neglecting security
- • Failing to plan