ChamTax is an online calculator that shows the after-tax take-home amount for US Powerball and Mega Millions lottery winnings. That "$1.2B jackpot" you saw in the news doesn't land in your bank account as-is. Here's why, and exactly how much is actually left, step by step.
Last updated: 2026-08-03
Announced jackpot (annuity basis)
e.g. $1,200,000,000
If you take the lump sum (present value, pre-tax, about 45-60%)
About $696,000,000
After US withholding (30%)
About $487,200,000
Factoring in Korean tax too (about 33%)
Ends up around 40-47% of the announced amount
Two reasons. First, the announced jackpot is the total under the annuity option. The lump sum, which most winners choose, discounts that to its present value - only about 45-60% of the headline figure. Second, US withholding (30%) and then Korean tax apply on top of that, in order.
| Lump Sum | Annuity | |
|---|---|---|
| How it's paid | All at once | 30 payments over 29 years |
| Total amount | About 45-60% of the announced amount | The full announced amount |
| Tax burden | Concentrated in one year | Spread out year by year |
| Who picks it | Most winners (preferred) | A minority |
| Can you switch later? | Must choose within 60 days of claiming; irreversible after that | |
Exactly how much would be left from your prize?
Calculate it now →The annuity is paid out over 29 years in US Treasury securities, while the lump sum discounts that future cash flow down to its present-day value. Depending on interest rates, the ratio moves somewhere between 45% and 60%.
Tax is calculated on the actual amount you receive - the lump sum, or each individual annuity payment. It's not applied to the total announced annuity figure itself.
The total amount is larger with the annuity (since there's no present-value discount), but this site's tax calculation is a simplified simulation, so the actual advantage depends on your personal situation. For large amounts, it's worth consulting a financial professional.
This page is for informational purposes only and does not sell, resell, or broker lottery tickets. Consult a tax professional for your actual tax filing.