The Powerball jackpot rose to $925 million—the fourth largest in the game’s history—after no tickets matched all six numbers drawn on Wednesday night, although the eventual winner will end up with a far smaller payout after their tax bill.
Powerball play slips are displayed in a convenience store on in Los Angeles, California.
If a winner emerges in the next draw, they will have a choice between a $925 million payout spread over 30 annual installments or a lump sum amount of $432.4 million—often the more popular choice.
The lump sum payment will drop to $328.62 million after a mandatory federal tax withholding of 24%.
Depending on the winner’s final taxable income, they could face a federal marginal rate as high as 37%, further dropping their winnings to $272.41 million.
Under the installment route, the winner’s annual payments of around $30.83 million could drop as low as $19.42 million, if the 37% federal marginal rate is applied.
Depending on the winner’s state of residence, their winnings could face further taxes as some states like New York levy a 10.9% tax on lottery winnings, while others like Texas, Florida, and California don’t tax them at all.
To win the massive Powerball jackpot a ticket holder will have to overcome terrible odds of 1-in-292.2 million. The Mega Millions jackpot has an even more abysmal 1-in-302.6 million odds.