How much tax do you pay if you win a lottery?

If our winner takes the $516.8 million lump sum payout, they'll automatically pay the IRS $124.0 million, or 24% off the top in federal tax withholding, according to Forbes. That leaves our winner with $392.8 million. But the total lump sum is subject to a federal marginal tax rate of up to 37%.

How much money will a Powerball winner get after taxes?

USAMega.com pegged the total that the winner of a $1.04 billion jackpot would see after federal taxes but prior to state taxes at $301.2 million. That would be for the cash payout option. The most recent time that the Powerball grand prize was won was in July, when the lottery selected the five white and one red balls for it.

Are Powerball and Mega Millions lottery winnings taxable income?

The Wednesday's winner will find that Powerball and Mega Millions lottery winnings are treated as taxable income. Powerball champs, who are advised to seek financial counsel before making decisions, have two options to collect the prize: $516.8 million in a lump sum. About $1 billion in an annuity of 30 graduated payments over 29 years.