Minnesota Lottery

MNLottery Powerball Jackpot Analysis

The Powerball jackpot for the draw on Wed Jan 7, 2026 is estimated to be $105 Million, with a cash option of 47.4 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 Minnesota, your state will take 7.25% 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.

Minnesota Powerball Jackpot/Cash Option for Wed Jan 7, 2026

Draw Date	Jackpot	Cash Option
Wed Jan 7, 2026	$105,000,000	$47,400,000

Lumpsum Option Taxes and Payment

Category	Amount
Cash Gross Payment	$47,400,000
Federal Tax(24%)	$11,376,000
Additional Federal Tax	$6,122,330
State Tax(7.25%)	$3,436,500
Net Lumpsum Payment	$26,465,170

Annuity Payment in 30 Installations

Year	Gross Payment	Fed/State Tax	Net Payment
1	$1,580,355	-$545,062 -$114,576	$920,717
2	$1,659,420	-$574,316 -$120,308	$964,796
3	$1,742,370	-$605,007 -$126,322	$1,011,041
4	$1,829,520	-$637,253 -$132,640	$1,059,627
5	$1,920,975	-$671,091 -$139,271	$1,110,613
6	$2,017,050	-$706,639 -$146,236	$1,164,175
7	$2,117,850	-$743,935 -$153,544	$1,220,371
8	$2,223,795	-$783,135 -$161,225	$1,279,435
9	$2,334,990	-$824,277 -$169,287	$1,341,426
10	$2,451,750	-$867,478 -$177,752	$1,406,520
11	$2,574,285	-$912,816 -$186,636	$1,474,833
12	$2,703,015	-$960,446 -$195,969	$1,546,600
13	$2,838,150	-$1,010,446 -$205,766	$1,621,938
14	$2,980,110	-$1,062,971 -$216,058	$1,701,081
15	$3,129,105	-$1,118,099 -$226,860	$1,784,146
16	$3,285,555	-$1,175,986 -$238,203	$1,871,366
17	$3,449,775	-$1,236,747 -$250,109	$1,962,919
18	$3,622,290	-$1,300,578 -$262,616	$2,059,096
19	$3,803,415	-$1,367,594 -$275,748	$2,160,073
20	$3,993,570	-$1,437,951 -$289,534	$2,266,085
21	$4,193,280	-$1,511,844 -$304,013	$2,377,423
22	$4,402,965	-$1,589,427 -$319,215	$2,494,323
23	$4,623,045	-$1,670,857 -$335,171	$2,617,017
24	$4,854,255	-$1,756,405 -$351,933	$2,745,917
25	$5,096,910	-$1,846,187 -$369,526	$2,881,197
26	$5,351,850	-$1,940,515 -$388,009	$3,023,326
27	$5,619,390	-$2,039,505 -$407,406	$3,172,479
28	$5,900,370	-$2,143,467 -$427,777	$3,329,126
29	$6,195,420	-$2,252,636 -$449,168	$3,493,616
30	$6,505,170	-$2,367,243 -$471,625	$3,666,302