Powerball Jackpot Nears $750 Million—Here’s What A Winner Would Take Home After Taxes
No winners were drawn on Saturday night, but multiple people won prizes of at least $1 million.
The Powerball jackpot reached an estimated $748 million after no winning tickets were drawn on Saturday night. However, a potential winner would ultimately receive significantly less after taxes. If a winner opts for the lump sum payment, they will receive about $325.1 million immediately. Nevertheless, this amount would face a 24% federal withholding tax, leaving the winner with approximately $247 million.
Furthermore, given the winner's high income, they may also be subject to a 37% federal marginal tax rate, potentially reducing the prize to around $204.8 million.
Alternatively, if a winner chooses the annuity option, they will receive their prize in 30 payments over 29 years, with each payment increasing by 5% annually. This results in a total of about $471 million after accounting for federal taxes. Additionally, winners must also contend with state taxes, which can vary significantly by location.
For instance, states like New York impose a tax rate of up to 10.9%, while states such as Texas, California, and Alaska do not tax lottery winnings at all. The next drawing is set for Monday night at 10:59 p.m. EDT, and players can watch the event live on Powerball's website or YouTube channel. Despite the large jackpot, the odds of winning remain slim, standing at one in 292.2 million.
Although no players secured the $719 million jackpot on Saturday night, six fortunate individuals each won $1 million by correctly guessing all five white balls. One lucky player in Virginia also won $2 million by choosing the Power Play option. Even though the odds are still long, the allure of such a substantial prize continues to captivate lottery enthusiasts.
Written by urgent.news from Forbes's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
