The Powerball jackpot has jumped to an estimated $785 million for its next drawing on Monday, the lottery’s fourth-largest prize ever, though the winning ticket holder would take home a significantly smaller portion of the prize after paying required taxes.
The jackpot trails a $1.08 billion prize won earlier this year.
The winner has the option of receiving the $785 million over 30 annual installments over the next 29 years, or as an up-front, lump-sum payment of $367 million.
The $367 million would be reduced to $278.9 million after a 24% federal tax withholding, while a federal marginal rate as high as 37%—depending on the winner’s taxable income—would reduce the winnings down to $231.2 million.
Lottery winnings are also subject to taxes in some states, with a rate as low as 2.5% in Arizona ($9.1 million) to as high as 10.9% ($40 million) in New York, though other states—including California and Texas—don’t tax lottery jackpots.
The jackpot is the fourth-largest in the lottery’s history and its second-largest this year, trailing a $1.08 billion prize won in July.
1.5 million. That’s how many winning tickets were drawn for the lottery’s last drawing on Saturday, according to the lottery. Of these, one won a $2 million prize, five won $1 million, nine won $100,000 prizes and 30 won $50,000.
The Mega Millions jackpot has reached an estimated $230 million for its next drawing on Tuesday, with a lump-sum prize of $107.8 million. A 24% federal tax withholding would reduce the lump-sum jackpot down to $81.9 million, while a federal marginal rate as high as 37% would reduce the winnings down to $67.9 million.
The largest lottery prizes in U.S. history have been won over the last eight years, after both the Powerball and Mega Millions lotteries increased the pool of white balls contestants could choose from, causing larger jackpots to accumulate over the course of several weeks as the odds of selecting a winning number fall. The odds of winning the Powerball jackpot are one in 292.2 million, after decreasing from one in 175.2 million. The odds of winning the Mega Millions jackpot decreased from one in 258.9 million to one in 302.6 million.
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