Powerball Jackpot And Tax Impact Overview

Powerball Jackpot Reaches $740 Million—Here’s How Much A Winner Would Take Home After Taxes

Powerball Jackpot Grows To $740 Million—Here’s How Much A Winner Could Owe In Taxes

The Powerball jackpot rose to $740 million after no tickets matched all six numbers drawn in Saturday night’s drawing, but a potential winner would take home substantially less after taxes.

Payout Options And Federal Taxes

Winners can choose between $740 million over 30 years, or a lump sum of $346.1 million before taxes.

No winning tickets matched all six winning numbers (19, 22, 30, 32, 59 and Powerball number 1) drawn Saturday, meaning the jackpot is growing once again before the next drawing.

If a winner is selected in the next drawing on Monday, they will have the choice between receiving the full jackpot paid out over 30 annual installments, or accepting a lump sum of $346.1 million.

If the winner selects the lump sum, the much more popular option, they will immediately face the 24% federal withholding tax, bringing their winnings down to $263 million.

They will then likely face a federal marginal tax rate of 37% based on their income, bringing the sum down to $218 million.

If the winner elects to take the installments, they will receive 30 annual payments of $15.5 million on average after accounting for federal taxes.

State Taxes And Final Take-Home Amount

The winner could also face state taxes on lottery winnings, which can get as high as 10.9% in New York, though many states, including California, Texas and Florida, do not tax lottery winnings at all.

Next Powerball Drawing

The next drawing is scheduled for Monday night at 10:59 p.m. EST. The drawings are livestreamed on Powerball’s website and YouTube channel. If no winner is selected Monday, the jackpot will grow again before the next drawing on Wednesday night.