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Washington Powerball Jackpot Annuity Payout Schedule for Jan 20, 2021

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The tax information provided here is based on 2021 federal marginal rates and state tax rates. It shows the final federal and state tax burdens each year, not the amount initially withheld by the lottery.

The Powerball annuity jackpot is awarded according to an annually-increasing rate schedule, which increases the amount of the annuity payment every year. The table below shows the payout schedule for a jackpot of $730,000,000 for a ticket purchased in Washington, including taxes withheld.

Please note, the amounts shown are very close approximations to the amount a jackpot annuity winner would receive from the lottery every year. They are not intended to specify the exact final tax burden, which may vary depending on how the winner chooses to invest or dispense their prize money, as well as deductions claimed.

Washington

Federal Filing Status:

Year Gross Payment Federal Taxes State Taxes Net Payment
1 $10,987,548 $4,029,465 $0 $6,958,083
2 $11,536,925 $4,232,735 $0 $7,304,191
3 $12,113,771 $4,446,168 $0 $7,667,604
4 $12,719,460 $4,670,273 $0 $8,049,188
5 $13,355,432 $4,905,582 $0 $8,449,850
6 $14,023,204 $5,152,658 $0 $8,870,547
7 $14,724,365 $5,412,087 $0 $9,312,278
8 $15,460,583 $5,684,488 $0 $9,776,095
9 $16,233,612 $5,970,509 $0 $10,263,103
10 $17,045,293 $6,270,831 $0 $10,774,462
11 $17,897,557 $6,586,169 $0 $11,311,389
12 $18,792,435 $6,917,273 $0 $11,875,162
13 $19,732,057 $7,264,933 $0 $12,467,124
14 $20,718,660 $7,629,976 $0 $13,088,684
15 $21,754,593 $8,013,272 $0 $13,741,321
16 $22,842,323 $8,415,732 $0 $14,426,591
17 $23,984,438 $8,838,314 $0 $15,146,124
18 $25,183,660 $9,282,027 $0 $15,901,634
19 $26,442,843 $9,747,924 $0 $16,694,919
20 $27,764,986 $10,237,117 $0 $17,527,869
21 $29,153,235 $10,750,769 $0 $18,402,466
22 $30,610,897 $11,290,104 $0 $19,320,793
23 $32,141,442 $11,856,406 $0 $20,285,036
24 $33,748,513 $12,451,022 $0 $21,297,491
25 $35,435,939 $13,075,370 $0 $22,360,569
26 $37,207,736 $13,730,935 $0 $23,476,802
27 $39,068,123 $14,419,278 $0 $24,648,845
28 $41,021,529 $15,142,038 $0 $25,879,491
29 $43,072,605 $15,900,936 $0 $27,171,669
30 $45,226,236 $16,697,780 $0 $28,528,456
Total $730,000,001 $269,022,171 $0 $460,977,836

Note: The Net Payment total above may be a few dollars off from the total after-tax annuity amount shown on the Jackpot Analysis page because the Jackpot Analysis page shows an average annual payment, whereas we calculate an exact payment here.

Powerball annuity chart shows the annual net payout a Washington jackpot winner would get after federal and state taxes.

Washington Lottery Revenues: How They’re Distributed

In fiscal year 2019, off ticket sales of $806 million, the Washington State Lottery not only paid $490.4 million in winnings to players, it also provided $215.8 million to state program beneficiaries, with the lion’s share going to education.

The enterprise also covers all its own operating expenses.

Of the money directed from Lottery proceeds to state programs, $166.7 million went to the Washington Opportunity Pathways Account.

It funds college grants and scholarships, early childhood education, vocational excellence programs, charter schools, and other education programs.

Decisions about how to spend the revenues are made by elected state legislators.

In 2010, lawmakers made official their intent for that account:

“…to direct lottery account moneys toward the Washington opportunity pathways account” and especially toward programs to “…stabilize and increase existing resources for the recruitment of entrepreneurial researchers, innovation partnership zones and research teams, early childhood education, opportunity grants, educational opportunity grants, get ready for math and science scholarships, passport to college promise scholarships, college bound scholarships, the state work-study program, the state need grant, Washington scholars awards, the Washington award for vocational excellence, and Washington promise scholarships.”

Rounding out fiscal 2019 spending of lottery proceeds earned by the state, $13.1 million went to the Stadium and Exhibition Center Account (CenturyLink Field), $30.9 million for the General Fund, $4.6 million to the Economic Development Account, and $400,000 to the Problem Gambling Account.

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Most of Washington state lottery revenue distributions to state agencies, are directed toward education; namely the Opportunity Pathways Account. ]]>