Topline
The Powerball jackpot ticked up to $426 million after no winners were drawn Saturday night, but a lucky winner or winners would take home substantially less after paying federal and state taxes on their winnings.
Winners from Monday’s upcoming drawing could get either $426 million in installments or a lump sum of $193.5 million, but that would get slashed significantly after taxes.
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Key Facts
No tickets were sold matching all of Saturday’s numbers (6, 18, 34, 35, 36, and Powerball number 2), raising the jackpot again for Monday’s upcoming drawing.
If a winner is drawn Monday, they will have the option of either accepting the $426 million prize spread out over 30 annualized payments, or take the lump sum of $193.5 million, which is the more popular option for winners.
However, a federal withholding tax of 24% is applied to that jackpot, bringing the winnings down to $323.7 million, or $147 million for the lump sum.
The winnings are then taxed based on the winners income—which could rise as high as 37% for Americans in the highest tax bracket, bringing the final winnings for the lump sum down to $121.9 million.
State taxes then reduce this jackpot even further, with New York charging the highest rate at 10.9%, though some states, including California, Florida and Texas, do not tax winnings.
What To Watch For
The next drawing is scheduled for Monday night at 10:59 p.m. EDT. If no winner is drawn Monday, the next drawings will take place Wednesday and Saturday.
Key Background
The odds for winning the Powerball jackpot are 1 in 292.2 million, according to the lottery organizers. The odds of winning the $1 million prize (with a ticket matching five numbers without the Powerball number) are 1 in 11.6 million.
Big Number
$526 million. That’s how much a lucky winner in California got after purchasing a winning ticket in March. Because that player won in the Golden State, they did not have to pay state taxes on those winnings.