Powerball Annuity Calculator

Select your state and enter the amount you've won (or hope to win!) and we'll show you the amount you would receive in annuity each year. Our calculator is based on a single filing tax status.

What is the Annuity Payout Option?

Annuity payout refers to receiving the winnings in a series of yearly payments, typically spread over 29 years, with the first payment being immediate.

How does the Annual Payment Increase work?

Each annual payment increases, often by about 5% from the last, to accommodate inflation and rising living costs.

Is the Annuity Option Mandatory?

No, winners can usually choose between a lump sum and the annuity option. The lump-sum is a smaller amount, paid all at once.

Can I Change from Annuity to Lump Sum after Opting for Annuity?

Typically, once you choose the annuity option, you cannot change to a lump sum later. However, some lottery winners sell their future annuity payments to a third party for a lump sum, usually at a discounted rate.

How are Taxes Handled with Annuity Payments?

Taxes, both federal and state, are generally withheld from each annuity payment as they are made, based on prevailing tax rates.

What Happens to My Annuity if I Die?

If a winner dies before receiving all the annuity payments, the remaining payments generally go to the winner's estate or a designated beneficiary.

Is the Annuity Option Safer than the Lump Sum Option?

Some consider the annuity option as safer, as it provides a steady income over many years, reducing the risk of squandering the winnings quickly. Read our detailed guide for annuity v lump sum.

Can I Assign My Annuity Payments to Someone Else?

Assignment of annuity payments is generally not allowed, but, as mentioned, they can often be sold to a third party for a lump sum.

How is the State Tax calculated on Annuity Payments?

State tax on annuity payments is usually based on the tax laws of the state where the winner resides, and it may vary widely from state to state. See our tax calculators page to calculate the tax you would owe in your state.