No, you pay taxes on the payout. It doesn't matter whether it's one lump sum payment or a series of annual ones.


>Isn't it that you pay close to 50% in taxes?
>
>>One possibility is that there was another winning ticket.
>>
>>Another possibility is that the winning amount is described as the total amount of a series of payments (usually over 20-30 years depending on the particular lottery). You have an option on getting either the annuity or cash value.