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Powerball Annuity Jackpot Analysis for Minnesota

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The Powerball annuity jackpot is awarded according to an increasing rate schedule, which increases the amount of the annuity payment every year.  The table below shows the payout schedule for a jackpot of $600,000,000 would be for a resident of Minnesota, 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 final tax burden, which may vary depending on how the winner chooses to invest or dispense their prize money.  (For example, if the winner gave all their fortune to charity, they may actually end up getting money back that was initially withheld, whereas someone who buys a new mansion and a fleet of new cars would probably end up owing more taxes than shown.)

State:

Minnesota

Drawing Date:  Sat, May 18, 2013
Jackpot:$600,000,000
Federal Tax:  25%
State Tax:7.25%
Report:Powerball annuity payout schedule (30 annual payments)

YearGross PaymentFederal TaxesState TaxesNet Payment
1$10,698,059$2,674,515$775,609$7,247,935
2$11,125,982$2,781,495$806,634$7,537,853
3$11,571,021$2,892,755$838,899$7,839,367
4$12,033,862$3,008,465$872,455$8,152,941
5$12,515,216$3,128,804$907,353$8,479,059
6$13,015,825$3,253,956$943,647$8,818,222
7$13,536,458$3,384,115$981,393$9,170,950
8$14,077,916$3,519,479$1,020,649$9,537,788
9$14,641,033$3,660,258$1,061,475$9,919,300
10$15,226,674$3,806,669$1,103,934$10,316,072
11$15,835,741$3,958,935$1,148,091$10,728,715
12$16,469,171$4,117,293$1,194,015$11,157,863
13$17,127,938$4,281,984$1,241,775$11,604,178
14$17,813,055$4,453,264$1,291,447$12,068,345
15$18,525,578$4,631,394$1,343,104$12,551,079
16$19,266,601$4,816,650$1,396,829$13,053,122
17$20,037,265$5,009,316$1,452,702$13,575,247
18$20,838,755$5,209,689$1,510,810$14,118,257
19$21,672,306$5,418,076$1,571,242$14,682,987
20$22,539,198$5,634,799$1,634,092$15,270,307
21$23,440,766$5,860,191$1,699,456$15,881,119
22$24,378,396$6,094,599$1,767,434$16,516,364
23$25,353,532$6,338,383$1,838,131$17,177,018
24$26,367,673$6,591,918$1,911,656$17,864,099
25$27,422,380$6,855,595$1,988,123$18,578,663
26$28,519,276$7,129,819$2,067,647$19,321,809
27$29,660,047$7,415,012$2,150,353$20,094,682
28$30,846,449$7,711,612$2,236,368$20,898,469
29$32,080,306$8,020,077$2,325,822$21,734,408
30$33,363,519$8,340,880$2,418,855$22,603,784
Total$600,000,000$150,000,000$43,500,000$406,500,000
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