Powerball Jackpot Reaches $1.1 Billion—But A WInner Would Take Home Much Less After Taxes
Topline
The Powerball jackpot grew to over $1.1 billion after no winners were drawn on Saturday night, however a potential winner would pay substantially less after facing taxes.
The jackpot will grow again if no winner is selected on Monday night.
AFP via Getty Images
Key Facts
No tickets were sold matching Saturday’s winning numbers (1, 28, 31, 57, 58, and Powerball number 6), meaning the jackpot grew before the next drawing.
If a winner is selected at the next drawing, they will choose between receiving the $1.1 billion over 30 annualized payments, or take a single lump sum worth $503.4 million—typically the more popular option.
If the winner takes the lump sum, they will immediately face a federal withholding tax of 24%, bringing their winnings down to about $382.5 million.
They will then likely face the highest federal marginal tax rate of 37%, bringing the jackpot down further to $317.1 million.
If the winner selects the annuity, they would receive 30 payments over the next three decades for an average of $23 million after federal taxes are applied.
The winner could also face state taxes based on where they live, which can get as high as the 10.9% rate in New York, although some states like California and Florida do not tax lottery winnings at all.
What To Watch For
The next drawing is scheduled for Monday night at 10:59 p.m. EST. Powerball streams these drawings live on their website and YouTube channel.
Read More
