Take-Home Jackpot

Powerball after taxes in Massachusetts

Powerball jackpot $360 million, winner living in Massachusetts. Cash option $153.6 million.

You keep about

$83 million in cash, single filer

Eighty-two million nine hundred ninety-four thousand and 00/100 dollars

Jackpot data as of Sep 24, 2026, for the Saturday, Sep 26 drawing.

Cash option, from advertised jackpot to what you keep
ItemAmountShare of jackpot
Advertised jackpotSum of 30 annuity payments$360,000,000
Cash optionOfficial cash value$153,600,000
Federal tax withheld at claim24% of the prize−$36,864,000
Federal tax still owed at filingTop bracket is 37%−$19,918,000
Massachusetts state tax9% of the prize−$13,824,000
You keep23.1% of the advertised jackpot$82,994,000
Payout

Massachusetts taxes lottery prizes as ordinary income at its 5% rate, and the 4% surtax on taxable income over about $1.08 million (indexed) brings the top rate on a jackpot to 9%.

Lump sum or annuity in Massachusetts

Lump sum and annuity after tax in Massachusetts
Cash optionAnnuity (30 payments)
Before tax$153,600,000$360,000,000
Total tax−$70,606,000−$164,100,008
You keep$82,994,000$195,899,993
In today's dollarsannuity discounted at 3% a year$82,994,000$118,634,653
When you get itAll at once$3 million now, then yearly up to $12.1 million

The annuity keeps $112.9 million more after tax in total but pays it over 29 years; the cash would need to earn 5.48% a year after tax to fund the same payments. How to think about the choice.

The 30 annuity payments

30 payments from $3 million to $12.1 million after tax
30 annual payments, taxed in the year received (2026 brackets assumed every year)
PaymentYearBefore taxFederalStateAfter tax
12026$5,418,517−$1,954,851−$487,666$2,975,999
22027$5,689,442−$2,055,094−$512,050$3,122,299
32028$5,973,915−$2,160,349−$537,652$3,275,914
42029$6,272,610−$2,270,866−$564,535$3,437,209
52030$6,586,241−$2,386,909−$592,762$3,606,570
62031$6,915,553−$2,508,755−$622,400$3,784,398
72032$7,261,331−$2,636,693−$653,520$3,971,118
82033$7,624,397−$2,771,027−$686,196$4,167,174
92034$8,005,617−$2,912,078−$720,506$4,373,033
102035$8,405,898−$3,060,182−$756,531$4,589,185
112036$8,826,193−$3,215,692−$794,357$4,816,144
122037$9,267,502−$3,378,976−$834,075$5,054,451
132038$9,730,877−$3,550,425−$875,779$5,304,674
142039$10,217,421−$3,730,446−$919,568$5,567,407
152040$10,728,292−$3,919,468−$965,546$5,843,278
162041$11,264,707−$4,117,942−$1,013,824$6,132,941
172042$11,827,942−$4,326,339−$1,064,515$6,437,089
182043$12,419,339−$4,545,156−$1,117,741$6,756,443
192044$13,040,306−$4,774,914−$1,173,628$7,091,765
202045$13,692,322−$5,016,159−$1,232,309$7,443,853
212046$14,376,938−$5,269,467−$1,293,924$7,813,546
222047$15,095,785−$5,535,441−$1,358,621$8,201,723
232048$15,850,574−$5,814,713−$1,426,552$8,609,310
242049$16,643,103−$6,107,948−$1,497,879$9,037,275
252050$17,475,258−$6,415,846−$1,572,773$9,486,639
262051$18,349,021−$6,739,138−$1,651,412$9,958,471
272052$19,266,472−$7,078,595−$1,733,982$10,453,894
282053$20,229,795−$7,435,024−$1,820,682$10,974,089
292054$21,241,285−$7,809,276−$1,911,716$11,520,294
302055$22,303,349−$8,202,239−$2,007,301$12,093,808
Total$360,000,000−$131,700,008−$32,400,000$195,899,993

Full-page version with every state: Powerball annuity schedule for Massachusetts.

How Massachusetts compares

Massachusetts ranks 44th of 51 for what a single winner keeps from this jackpot in cash ($83 million).

Neighbouring states, same jackpot, cash option, single filer
StateState taxCash kept
Massachusetts9%$83 million
Connecticut6.99%$86.1 million
New Hampshirenone$96.8 million
New York10.9%$80.1 million
Rhode Island5.99%$87.6 million
Vermont8.75%$83.4 million

All 50 states and DC for this jackpot
Best states to win the lottery

Questions

How much is a $360 million Powerball jackpot after taxes in Massachusetts?

About $83 million if you take the cash option ($153.6 million before taxes), or about $195.9 million in total over 30 annual payments if you take the annuity. Massachusetts taxes the prize at 9%.

How much tax is taken out of lottery winnings in Massachusetts?

At claim the lottery withholds 24% for federal tax on prizes over $5,000. We could not confirm Massachusetts's withholding rate at claim; the full state tax is due by the time you file. On a jackpot this size the final federal bill is closer to 37% of the prize because most of it falls in the 37% bracket, so about $19.9 million more is owed when you file.

What is the Massachusetts tax rate on lottery winnings?

9%. Massachusetts taxes lottery prizes as income; a jackpot is taxed almost entirely at the top rate of 9%, which is about $13.8 million on the cash option.

Is it better to take the lump sum or annuity in Massachusetts?

The annuity pays about $112.9 million more after taxes in total, spread over 29 years. The cash option comes out ahead only if you can earn more than 5.5% a year after tax on it. Many winners take the cash; the annuity protects against spending it too fast.

Which states do not tax lottery winnings?

Alaska, California, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming do not tax lottery prizes (California only exempts prizes from tickets bought there). Among the 50 states and DC, Massachusetts ranks 44th of 51 for what you keep from this jackpot.

These figures describe the taxes on a prize that has already been won; they are not a reason to buy a ticket. Jackpot odds are hundreds of millions to one. If gambling is causing problems for you or someone close to you, call or text 1-800-GAMBLER (National Problem Gambling Helpline, 24/7).

Sources for this page

Figures are estimates for planning, not tax or legal advice. How they are calculated: methodology. Read the disclaimer.