The Powerball jackpot climbed to $750 million after no winning ticket emerged following Wednesday night’s draw, but the eventual winner will take home a smaller amount after paying their taxes.
File Photo: The biggest Powerball Prize of 2024 so far was won on New Year's day with a single ... [+]
If a winner is found in the next draw, they will get to pick between receiving the $750 million jackpot split over 30 annual payments or a lump sum cash prize of $357.3 million—usually the popular choice.
The lump sum prize drops to $271.5 million after a mandatory federal tax withholding of 24% is applied.
Depending on their taxable income, the winner could then face a federal marginal rate as high as 37%, cutting their winnings further to $225.1 million.
If the winner picks the annual payments route, their yearly installment of $25 million drops to $15.75 million if the 37% federal marginal rate is applied.
The winner’s state of residence will also impact the amount they take home as some states like Texas and California don’t tax lottery winnings, while others like New York deduct 10.9%.