Arizona Lottery

AZLottery Powerball Jackpot Analysis

The Powerball jackpot for the draw on Sat Jan 3, 2026 is estimated to be $64 Million, with a cash option of 29.5 Million. If you win the Powerball jackpot, the IRS will withhold 24% of your prize money upfront, and you may owe up to an additional 13% in federal taxes when the tax is due. Additionally, if you are a resident of Arizona, your state will take 2.5% of your lottery winnings.

Please note that the calculation of the Powerball jackpot prizes and taxes below is based on FEDERAL INCOME TAX BRACKETS FOR 2023.

Arizona Powerball Jackpot/Cash Option for Sat Jan 3, 2026

Draw Date	Jackpot	Cash Option
Sat Jan 3, 2026	$64,000,000	$29,500,000

Lumpsum Option Taxes and Payment

Category	Amount
Cash Gross Payment	$29,500,000
Federal Tax(24%)	$7,080,000
Additional Federal Tax	$3,795,330
State Tax(2.5%)	$737,500
Net Lumpsum Payment	$17,887,170

Annuity Payment in 30 Installations

Year	Gross Payment	Fed/State Tax	Net Payment
1	$963,264	-$316,738 -$24,082	$622,444
2	$1,011,456	-$334,569 -$25,286	$651,601
3	$1,062,016	-$353,276 -$26,550	$682,190
4	$1,115,136	-$372,931 -$27,878	$714,327
5	$1,170,880	-$393,556 -$29,272	$748,052
6	$1,229,440	-$415,223 -$30,736	$783,481
7	$1,290,880	-$437,956 -$32,272	$820,652
8	$1,355,456	-$461,849 -$33,886	$859,721
9	$1,423,232	-$486,926 -$35,581	$900,725
10	$1,494,400	-$513,258 -$37,360	$943,782
11	$1,569,088	-$540,893 -$39,227	$988,968
12	$1,647,552	-$569,925 -$41,189	$1,036,438
13	$1,729,920	-$600,401 -$43,248	$1,086,271
14	$1,816,448	-$632,416 -$45,411	$1,138,621
15	$1,907,264	-$666,018 -$47,682	$1,193,564
16	$2,002,624	-$701,301 -$50,066	$1,251,257
17	$2,102,720	-$738,337 -$52,568	$1,311,815
18	$2,207,872	-$777,243 -$55,197	$1,375,432
19	$2,318,272	-$818,091 -$57,957	$1,442,224
20	$2,434,176	-$860,976 -$60,854	$1,512,346
21	$2,555,904	-$906,015 -$63,898	$1,585,991
22	$2,683,712	-$953,304 -$67,093	$1,663,315
23	$2,817,856	-$1,002,937 -$70,446	$1,744,473
24	$2,958,784	-$1,055,080 -$73,970	$1,829,734
25	$3,106,688	-$1,109,805 -$77,667	$1,919,216
26	$3,262,080	-$1,167,300 -$81,552	$2,013,228
27	$3,425,152	-$1,227,637 -$85,629	$2,111,886
28	$3,596,416	-$1,291,004 -$89,910	$2,215,502
29	$3,776,256	-$1,357,545 -$94,406	$2,324,305
30	$3,965,056	-$1,427,401 -$99,126	$2,438,529