ChamTax is a free calculator that shows the actual after-tax take-home amount for US Powerball and Mega Millions jackpots. Here's how a Powerball or Mega Millions win is taxed for a California resident — combining the federal tax hit with California's own lottery tax rate (which is $0).
Last updated: 2026-09-29
$1,000,000 win in California, single filer estimate
California has a state income tax on most income, but it specifically carves out an exemption for California Lottery winnings — so a California resident's Powerball or Mega Millions jackpot isn't taxed by the state at all. (Winnings from other states' lotteries, bought while in California, generally follow the same state-level treatment for California residents.) The only tax bite comes from the federal government.
California is unusual: it has a state income tax on most income (a top rate over 13%), but it specifically carves out an exemption for California Lottery winnings, so the effective rate here is 0% — the same practical outcome as the nine states with no state income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming). At the other end of the range, Hawaii has the highest rate in this calculator's model, at 11%.
Whichever state you live in, the IRS automatically withholds a flat 24% from a lottery prize the moment it's paid out. That 24% is only the up-front withholding, though — it is not the final bill. For a jackpot-sized win, the actual top federal marginal rate is 37%, so most jackpot winners end up owing a significant additional amount when they file their return the following year. This calculator (like the quick-answer box above) shows the true 37% outcome, not just the smaller 24% withheld at the register, so the number you see here is the one to actually plan around.
Powerball and Mega Millions winners choose between a smaller lump-sum cash payout today or the full advertised jackpot paid out as an annuity over 29-30 years. Choosing lump sum vs. annuity changes the size and timing of the payments, but it does not change the tax rates that apply — federal and California state tax (where applicable) are calculated the same way either way, just against a smaller total (the lump sum) or a series of smaller annual payments (the annuity). Most jackpot winners historically choose the lump sum. This is general information, not financial advice — the better choice depends on your own circumstances.
See your own after-tax amount in California
Open the calculator →On a $1,000,000 win, the IRS withholds 24% immediately, but a jackpot-sized prize actually falls in the top 37% federal bracket, so a California resident should plan for 37% federal tax — $370,000 — plus California's state tax, which is $0, for an estimated take-home of about $630,000. Use the calculator above for other amounts.
There's no single right answer — it depends on your own financial situation, and this isn't financial advice. A lump sum gives you the full (smaller) amount immediately, which you could invest yourself, while an annuity spreads the full advertised jackpot over 29-30 years of payments. Tax rates apply the same way to either option; the difference is the total amount and the timing, not the rate.
Yes. You don't need US citizenship or residency to claim a US lottery prize — anyone who legally bought the winning ticket can collect. However, nonresident aliens (non-US-citizens without US tax residency) face a flat 30% federal withholding rate instead of the 24%-withheld/37%-top-rate treatment that applies to US residents.
The IRS withholds 24% immediately when a lottery prize is paid out. But 24% is just the withholding — for a jackpot-sized win, the real top marginal federal tax rate is 37%, so most winners owe additional federal tax beyond the 24% withheld once they file. Nonresident aliens instead face a flat 30% withholding rate.
This page is an informational simulator only and does not broker or facilitate lottery ticket purchases. Actual tax owed depends on individual circumstances and the exchange rate/tax law in effect at filing time — consult a qualified tax professional.