Powerball Jackpot Hits $633 Million—But A Winner Faces Steep Taxes
Topline
The Powerball jackpot grew to $633 million after no winners were drawn on Saturday night, although an eventual winner would take home significantly less after taxes.
The Powerball jackpot rose after the second drawing that included tickets sold in the U.K.
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Key Facts
No tickets matched all six numbers drawn on Saturday night (3, 4, 24, 36, 47 and Powerball number 17), meaning the jackpot will grow again before the next drawing on Monday night.
If a winning ticket is drawn on Monday night, the winner will have the ability to receive the $633 million jackpot in 30 annual payments, or take home a lump sum immediately worth about $277.3 million—the far more popular option.
If the winner picks the lump sum, they will face a 24% federal withholding tax, bringing their winnings down to $210.7 million.
The prize would also likely bump them into the highest income tax bracket, meaning they would face a 37% federal marginal rate, bringing the final take home pay down to about $174.7 million.
If the winner instead chooses the annuity, they would receive 30 annual payments that grow 5% each year for a combined total of about $400 million after factoring in the same federal taxes over the next 29 years.
Winners could also face state taxes on their winnings, which reach as high asNew York’s 10.9%, while states like Texas, California and Florida don’t tax lottery winnings.
What to Watch For
The next drawing takes place on Monday night at 10:59 p.m. EDT. Players can watch a livestream of the drawing on Powerball’s website or YouTube channel.
Tangent
Saturday’s drawing was the second drawing that included players from the U.K., after the lottery expanded into the country last week. The larger pool of possible players means Powerball jackpots could start growing even faster, and the odds of winning the grand prize would remain the same.
Big Number
1 in 292.2 million. Those are the odds for winning Powerball’s grand prize jackpot, which requires a player to correctly match all five numbers on white balls and the number on the red Powerball. Players can still net a $1 million prize if they match all five white numbers, although this feat also faces steep odds—about 1 in 11.6 million, according to Powerball lottery organizers. However, six players still managed to win this prize on Saturday night, with winning tickets sold in Michigan, Mississippi, North Carolina, Pennsylvania, Texas and Washington.
