Minnesota Lottery

MNLottery 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 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 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(7.25%)	$2,813,000
Net Lumpsum Payment	$21,670,670

Annuity Payment in 30 Installations

Year	Gross Payment	Fed/State Tax	Net Payment
1	$1,294,386	-$439,253 -$93,843	$761,290
2	$1,359,144	-$463,214 -$98,538	$797,392
3	$1,427,084	-$488,351 -$103,464	$835,269
4	$1,498,464	-$514,762 -$108,639	$875,063
5	$1,573,370	-$542,477 -$114,069	$916,824
6	$1,652,060	-$571,593 -$119,774	$960,693
7	$1,734,620	-$602,140 -$125,760	$1,006,720
8	$1,821,394	-$634,246 -$132,051	$1,055,097
9	$1,912,468	-$667,944 -$138,654	$1,105,870
10	$2,008,100	-$703,327 -$145,587	$1,159,186
11	$2,108,462	-$740,461 -$152,863	$1,215,138
12	$2,213,898	-$779,473 -$160,508	$1,273,917
13	$2,324,580	-$820,425 -$168,532	$1,335,623
14	$2,440,852	-$863,446 -$176,962	$1,400,444
15	$2,562,886	-$908,598 -$185,809	$1,468,479
16	$2,691,026	-$956,010 -$195,099	$1,539,917
17	$2,825,530	-$1,005,776 -$204,851	$1,614,903
18	$2,966,828	-$1,058,057 -$215,095	$1,693,676
19	$3,115,178	-$1,112,946 -$225,850	$1,776,382
20	$3,270,924	-$1,170,572 -$237,142	$1,863,210
21	$3,434,496	-$1,231,094 -$249,001	$1,954,401
22	$3,606,238	-$1,294,638 -$261,452	$2,050,148
23	$3,786,494	-$1,361,333 -$274,521	$2,150,640
24	$3,975,866	-$1,431,401 -$288,250	$2,256,215
25	$4,174,612	-$1,504,937 -$302,659	$2,367,016
26	$4,383,420	-$1,582,196 -$317,798	$2,483,426
27	$4,602,548	-$1,663,273 -$333,685	$2,605,590
28	$4,832,684	-$1,748,423 -$350,370	$2,733,891
29	$5,074,344	-$1,837,838 -$367,890	$2,868,616
30	$5,328,044	-$1,931,707 -$386,283	$3,010,054