New Mexico Lottery

NMLottery 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 New Mexico, your state will take 5.9% 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 Mexico 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(5.9%)	$2,796,600
Net Lumpsum Payment	$27,105,070

Annuity Payment in 30 Installations

Year	Gross Payment	Fed/State Tax	Net Payment
1	$1,580,355	-$545,062 -$93,241	$942,052
2	$1,659,420	-$574,316 -$97,906	$987,198
3	$1,742,370	-$605,007 -$102,800	$1,034,563
4	$1,829,520	-$637,253 -$107,942	$1,084,325
5	$1,920,975	-$671,091 -$113,338	$1,136,546
6	$2,017,050	-$706,639 -$119,006	$1,191,405
7	$2,117,850	-$743,935 -$124,953	$1,248,962
8	$2,223,795	-$783,135 -$131,204	$1,309,456
9	$2,334,990	-$824,277 -$137,764	$1,372,949
10	$2,451,750	-$867,478 -$144,653	$1,439,619
11	$2,574,285	-$912,816 -$151,883	$1,509,586
12	$2,703,015	-$960,446 -$159,478	$1,583,091
13	$2,838,150	-$1,010,446 -$167,451	$1,660,253
14	$2,980,110	-$1,062,971 -$175,826	$1,741,313
15	$3,129,105	-$1,118,099 -$184,617	$1,826,389
16	$3,285,555	-$1,175,986 -$193,848	$1,915,721
17	$3,449,775	-$1,236,747 -$203,537	$2,009,491
18	$3,622,290	-$1,300,578 -$213,715	$2,107,997
19	$3,803,415	-$1,367,594 -$224,401	$2,211,420
20	$3,993,570	-$1,437,951 -$235,621	$2,319,998
21	$4,193,280	-$1,511,844 -$247,404	$2,434,032
22	$4,402,965	-$1,589,427 -$259,775	$2,553,763
23	$4,623,045	-$1,670,857 -$272,760	$2,679,428
24	$4,854,255	-$1,756,405 -$286,401	$2,811,449
25	$5,096,910	-$1,846,187 -$300,718	$2,950,005
26	$5,351,850	-$1,940,515 -$315,759	$3,095,576
27	$5,619,390	-$2,039,505 -$331,544	$3,248,341
28	$5,900,370	-$2,143,467 -$348,122	$3,408,781
29	$6,195,420	-$2,252,636 -$365,530	$3,577,254
30	$6,505,170	-$2,367,243 -$383,805	$3,754,122