Colorado Lottery

COLottery Powerball Jackpot Analysis

The Powerball jackpot for the draw on Mon Jan 5, 2026 is estimated to be $86 Million, with a cash option of 38.8 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 Colorado, your state will take 4% 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.

Colorado Powerball Jackpot/Cash Option for Mon Jan 5, 2026

Draw Date	Jackpot	Cash Option
Mon Jan 5, 2026	$86,000,000	$38,800,000

Lumpsum Option Taxes and Payment

Category	Amount
Cash Gross Payment	$38,800,000
Federal Tax(24%)	$9,312,000
Additional Federal Tax	$5,004,330
State Tax(4%)	$1,552,000
Net Lumpsum Payment	$22,931,670

Annuity Payment in 30 Installations

Year	Gross Payment	Fed/State Tax	Net Payment
1	$1,294,386	-$439,253 -$51,775	$803,358
2	$1,359,144	-$463,214 -$54,366	$841,564
3	$1,427,084	-$488,351 -$57,083	$881,650
4	$1,498,464	-$514,762 -$59,939	$923,763
5	$1,573,370	-$542,477 -$62,935	$967,958
6	$1,652,060	-$571,593 -$66,082	$1,014,385
7	$1,734,620	-$602,140 -$69,385	$1,063,095
8	$1,821,394	-$634,246 -$72,856	$1,114,292
9	$1,912,468	-$667,944 -$76,499	$1,168,025
10	$2,008,100	-$703,327 -$80,324	$1,224,449
11	$2,108,462	-$740,461 -$84,338	$1,283,663
12	$2,213,898	-$779,473 -$88,556	$1,345,869
13	$2,324,580	-$820,425 -$92,983	$1,411,172
14	$2,440,852	-$863,446 -$97,634	$1,479,772
15	$2,562,886	-$908,598 -$102,515	$1,551,773
16	$2,691,026	-$956,010 -$107,641	$1,627,375
17	$2,825,530	-$1,005,776 -$113,021	$1,706,733
18	$2,966,828	-$1,058,057 -$118,673	$1,790,098
19	$3,115,178	-$1,112,946 -$124,607	$1,877,625
20	$3,270,924	-$1,170,572 -$130,837	$1,969,515
21	$3,434,496	-$1,231,094 -$137,380	$2,066,022
22	$3,606,238	-$1,294,638 -$144,250	$2,167,350
23	$3,786,494	-$1,361,333 -$151,460	$2,273,701
24	$3,975,866	-$1,431,401 -$159,035	$2,385,430
25	$4,174,612	-$1,504,937 -$166,984	$2,502,691
26	$4,383,420	-$1,582,196 -$175,337	$2,625,887
27	$4,602,548	-$1,663,273 -$184,102	$2,755,173
28	$4,832,684	-$1,748,423 -$193,307	$2,890,954
29	$5,074,344	-$1,837,838 -$202,974	$3,033,532
30	$5,328,044	-$1,931,707 -$213,122	$3,183,215