Powerball Jackpot Rises To $1.6 Billion
Topline
The Powerball jackpot grew after no winners were drawn Saturday night, reaching an estimated $1.6 billion for the second-largest jackpot of the year, but an eventual winner would take home significantly less after taxes.
The Powerball jackpot grew to its largest since two winners split a $1.7 billion prize in September.
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Key Facts
No tickets matched all six numbers (4, 5, 28, 52, 69 and Powerball number 20) in Saturday night’s $1.5 billion drawing, meaning the jackpot is growing again before the next drawing.
A possible winner would choose between receiving the full $1.6 billion jackpot in 30 annualized payments, or take an immediate lump sum worth $735.3 million.
If the winner picks the lump sum, the more popular option, they would immediately face a 24% federal withholding tax, which would bring their prize down to $588.8 million.
Their income through the prize means they would also likely face the highest federal marginal tax rate of 37%, bringing the total down to $463.2 million.
If the winner opts for the annuity, they would receive 30 payments, which grow 5% each year for average at $33.6 million and a net jackpot of about $1 billion after factoring in federal taxes.
Winners could also face state taxes, which can range as high as 10.9% in New York—but some states including Texas, Florida and California do not tax lottery winnings at all.
What To Watch For
The next Powerball drawing takes place on Monday night at 10:59 p.m. EST. Players can watch the results live on Powerball’s website, or stream them from the lottery’s YouTube channel.
Big Number
$2.04 billion. That’s the largest Powerball jackpot in history, which was won by a player in November 2022. The second-highest jackpot in history was won earlier this year, when winners in Texas and Missouri split a $1.78 billion prize. The current jackpot is the fourth-largest jackpot in Powerball history.
Key Background
The chances of winning the Powerball jackpot are incredibly slim, with odds of one in 292.2 million, according to lottery organizers. However, a number of players won Powerball’s second-biggest prize, $1 million, in Saturday’s drawing, with a winning ticket sold in California, Florida, Iowa, Massachusetts, New Hampshire, Ohio and two winning tickets sold in Michigan. To win this prize, players match all five numbers on the white balls, but miss the red Powerball number needed for the grand prize. The odds for winning this prize are also steep—estimated at one in 11.6 million.
This content is sourced from www.forbes.com and is shared for informational purposes only.
