New Jersey Lottery

NJLottery 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 New Jersey, your state will take 8% 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.

New Jersey 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(8%)	$2,360,000
Net Lumpsum Payment	$16,264,670

Annuity Payment in 30 Installations

Year	Gross Payment	Fed/State Tax	Net Payment
1	$963,264	-$316,738 -$77,061	$569,465
2	$1,011,456	-$334,569 -$80,916	$595,971
3	$1,062,016	-$353,276 -$84,961	$623,779
4	$1,115,136	-$372,931 -$89,211	$652,994
5	$1,170,880	-$393,556 -$93,670	$683,654
6	$1,229,440	-$415,223 -$98,355	$715,862
7	$1,290,880	-$437,956 -$103,270	$749,654
8	$1,355,456	-$461,849 -$108,436	$785,171
9	$1,423,232	-$486,926 -$113,859	$822,447
10	$1,494,400	-$513,258 -$119,552	$861,590
11	$1,569,088	-$540,893 -$125,527	$902,668
12	$1,647,552	-$569,925 -$131,804	$945,823
13	$1,729,920	-$600,401 -$138,394	$991,125
14	$1,816,448	-$632,416 -$145,316	$1,038,716
15	$1,907,264	-$666,018 -$152,581	$1,088,665
16	$2,002,624	-$701,301 -$160,210	$1,141,113
17	$2,102,720	-$738,337 -$168,218	$1,196,165
18	$2,207,872	-$777,243 -$176,630	$1,253,999
19	$2,318,272	-$818,091 -$185,462	$1,314,719
20	$2,434,176	-$860,976 -$194,734	$1,378,466
21	$2,555,904	-$906,015 -$204,472	$1,445,417
22	$2,683,712	-$953,304 -$214,697	$1,515,711
23	$2,817,856	-$1,002,937 -$225,428	$1,589,491
24	$2,958,784	-$1,055,080 -$236,703	$1,667,001
25	$3,106,688	-$1,109,805 -$248,535	$1,748,348
26	$3,262,080	-$1,167,300 -$260,966	$1,833,814
27	$3,425,152	-$1,227,637 -$274,012	$1,923,503
28	$3,596,416	-$1,291,004 -$287,713	$2,017,699
29	$3,776,256	-$1,357,545 -$302,100	$2,116,611
30	$3,965,056	-$1,427,401 -$317,204	$2,220,451