Topline
The Powerball jackpot rose to $449 million—the second biggest of the year so far—after no tickets matched all six numbers drawn on Monday night, although the eventual winner will likely take home a much smaller payout after paying their taxes.
The Powerball jackpot rose to $449 million on Monday.
AFP via Getty Images
Key Facts
If a winner emerges in the next draw, they can choose between receiving the $449 million spread over 30 annualized payments or a one-time lump sum cash payout of $203.9 million—usually the popular choice.
If the cash payout is chosen, the winnings will drop to $155 million after a mandatory federal withholding of 24% is applied.
The winner could then face a federal marginal rate as high as 37%, depending on their taxable income, further slashing their winnings to $128.4 million.
If the winner picks the installment route, their annual payments of around $14.97 million would drop to $9.43 million if the 37% federal marginal rate is applied.
The winner may also face additional taxes from their state of residence, as some states like New York tax lottery winnings at 10.9%, while others, such as Texas, Florida, and California, don’t.
Big Number
1-in-292.2 million. Those are the astronomical odds a Powerball ticket buyer has to overcome to win the jackpot. This is slightly worse than the Mega Millions jackpot odds of 1-in-290.4 million. Earlier this year, Mega Millions implemented some changes that slightly improved the odds of winning the jackpot from 1-in-302.6 million.
What To Watch For
The next draw for the Powerball jackpot will take place on Wednesday night.
Key Background
The biggest lottery prize of the year so far was a Powerball jackpot of $526.5 million, won by a ticket buyer from California. Last year’s biggest lottery prize was also a Powerball Jackpot—worth $1.326 billion and won by an Oregon resident. The biggest Mega Millions jackpot this year was a $349 million prize won by an Illinois resident in March.
Further Reading
Powerball Jackpot Reaches $426 Million—Here’s What The Winner Could Take Home After Taxes (Forbes)