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Data study · 2026 tax year

What a $1,000,000,000 Lottery Jackpot Actually Pays, by State

Run against a $1,000,000,000 jackpot — a round benchmark, not a specific drawing. Nobody takes home the number on the billboard. We ran it through the cash-value cut, 2026 federal brackets and every state's tax rules using the same engine behind our lottery tax calculator.

Advertised jackpot
$1,000,000,000
30-year annuity total
Cash value
$480,000,000
about 48% of the headline
Best case take-home
$302,450,000
10 states take nothing
Worst case take-home
$249,660,789
Hawaii
#StateLump-sum take-homeState tax
1Alaskano state tax$302,450,000$02Californialottery exempt$302,450,000$03Floridano state tax$302,450,000$04Nevadano state tax$302,450,000$05New Hampshireno state tax$302,450,000$06South Dakotano state tax$302,450,000$07Tennesseeno state tax$302,450,000$08Texasno state tax$302,450,000$09Washingtonno state tax$302,450,000$010Wyomingno state tax$302,450,000$011North Dakota$290,452,685−$11,997,31412Arizona$290,450,394−$11,999,60613Ohio$289,250,384−$13,199,61614Indiana$288,290,029−$14,159,97115Louisiana$288,050,386−$14,399,61416Pennsylvania$287,714,000−$14,736,00017Kentucky$285,650,117−$16,799,88218Arkansas$284,690,171−$17,759,82919Iowa$284,210,612−$18,239,38820North Carolina$283,298,508−$19,151,49121Mississippi$283,250,732−$19,199,26822Michigan$282,050,251−$20,399,74923Colorado$281,330,708−$21,119,29224Utah$281,090,000−$21,360,00025Oklahoma$280,850,545−$21,599,45526Nebraska$280,610,703−$21,839,29627West Virginia$280,466,889−$21,983,11128Missouri$279,890,937−$22,559,06329Illinois$278,690,145−$23,759,85530Georgia$278,498,748−$23,951,25231Alabama$278,450,265−$23,999,73532South Carolina$277,443,747−$25,006,25333Idaho$277,011,082−$25,438,91834Kansas$275,666,799−$26,783,20035Montana$275,331,361−$27,118,63936Virginia$274,850,814−$27,599,18637New Mexico$274,133,592−$28,316,40838Rhode Island$273,702,118−$28,747,88239Maryland$271,257,041−$31,192,95940Delaware$270,771,231−$31,678,76941Connecticut$268,901,700−$33,548,30042Wisconsin$265,739,544−$36,710,45643Vermont$260,456,593−$41,993,40744Massachusetts$259,294,706−$43,155,29445Maine$258,552,404−$43,897,59546Minnesota$255,177,202−$47,272,79847Oregon$254,932,043−$47,517,95648New Jersey$250,883,034−$51,566,96649New York$250,346,158−$52,103,84250Hawaii$249,660,789−$52,789,210

Lump sum, single filer, no other income. Tap a state to see how it taxes ordinary income.

The billboard number is the one thing nobody receives

A $1,000,000,000 jackpot means 30 payments growing 5% a year and adding up to $1,000,000,000. Almost every winner takes the cash option instead — $480,000,000, roughly 48% of the headline. That is not a penalty; it is what the prize is worth today rather than spread over three decades.

Federal tax then takes $177,550,000 of that cash value. Here is the part that surprises people: the lottery withholds a flat 24% up front — $115,200,000 — but a prize this size sits in the top 2026 bracket, so the true bill is far higher. The winner still owes $62,350,000 at filing, on money that already feels spent.

Only then does the state take its share, and that is where the ranking comes from. The gap between the best and worst state is $52,789,211 on an identical ticket.

California is the surprise at the top

10 states take nothing from the prize. Nine of them are the no-income-tax states, which is unsurprising. The tenth is California — a state with the most graduated income tax in the country, topping out at 13.3%, which nonetheless exempts California Lottery prizes from state income tax by statute. A Californian keeps the same $302,450,000 as a Floridian.

At the other end, Hawaii takes $52,789,210 — meaning the identical ticket is worth $52,789,211 less there than in California, purely because of where it was bought.

Cite or republish this study

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Suggested citation

Tallivo, “Lottery Take-Home on a $1,000,000,000 Jackpot in Every State (2026),” updated July 25, 2026. https://tallivo.com/data/lottery-take-home-by-state

Key findings

  • A $1,000,000,000 advertised jackpot is worth $480,000,000 as cash (about 48%), and $302,450,000 after tax in the best states.
  • The 24% federal withholding ($115,200,000) covers only part of the bill — the winner owes another $62,350,000 at filing.
  • California exempts state lottery prizes from its income tax, so it ties for first despite a 13.3% top rate.
  • Hawaii taxes the prize hardest at $52,789,210, a $52,789,211 swing versus a no-tax state on the same ticket.

The data

Download the full dataset (CSV)

All 50 states with the federal, FICA and state components broken out. Generated by the same engine that renders the table on this page, so the file and the page cannot disagree.

Chart image

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Free to republish alongside a credit to Tallivo and a link to this page. Please do not alter the figures in the image.

Dates & method

Published July 25, 2026 · Figures last verified July 25, 2026.
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Primary sources

Writing something and need a figure we have not published — a different salary, a specific state, a filing status? Ask and we will run it.

Common questions

How much of a $1,000,000,000 jackpot do you actually keep?
Between $249,660,789 and $302,450,000 taking the lump sum, depending on the state. The advertised $1,000,000,000 is the annuity total; the cash option is about 48% of it, or $480,000,000, and federal tax takes $177,550,000 of that before any state tax.
Why is the cash value so much less than the advertised jackpot?
The advertised figure is the total of 30 annual payments that grow 5% a year. The cash option is what the lottery would have invested to fund those payments — currently around 48% of the headline. Taking cash is not a penalty; it is the present value.
Is 24% withholding the whole federal tax bill?
No, and this is where winners get caught. The payer withholds a flat 24% ($115,200,000 here) on Form W-2G, but a jackpot lands in the top 2026 bracket, so the real federal bill is $177,550,000. The remaining $62,350,000 is due at filing.
Which states do not tax lottery winnings?
10 states take nothing: the ones with no income tax at all, plus California, which taxes income generally but statutorily exempts California Lottery prizes. Hawaii takes the most at $52,789,210.
Does taking the annuity change the tax?
It spreads it. Each of the 30 payments is taxed as income in its own year, so more of the money falls below the top bracket — but every payment is still large enough to sit near the top. These figures tax each annuity year at today's law, because future rates are unknowable.

How we calculate this

Lump sum = advertised × 48% cash value. Federal tax uses the 2026 ordinary brackets and standard deduction; state tax uses each state's 2025-baseline rules (verified 2026-07-15), with California's statutory lottery exemption applied. Single filer, no other income — at this scale other income barely moves the result. Annuity figures tax each of the 30 payments in its own year at today's law, because future rates cannot be known.

Not tax advice. A real win involves choices — trusts, timing, residency, charitable gifts — that change the answer materially. Talk to a professional before claiming.

Full methodology & sources →

Estimates for the 2026 tax year, not financial or tax advice. Figures assume a single filer with no other income and no state-specific withholding quirks.