A single ticket sold in Michigan won the $842.4 million Powerball jackpot on Monday night—the first big lottery purse of the new year and the fifth largest in Powerball history—although the winner will take home a significantly smaller amount after paying their taxes.
The first big jackpot of the new year was won by a Powerball ticket holder from Michigan.
Powerball said the winning ticket sold in Michigan was the only one to match the six numbers drawn on Monday: 12, 21, 42, 44, 49 and red Powerball 1.
The winner now has to choose between receiving a $842.4 million payout spread over 30 annual installments or a lump sum cash amount of $425.2 million—usually the popular pick.
If the cash prize is chosen, the winnings will drop to $323.15 million after a mandatory federal tax withholding of 24%.
Depending on the winner’s taxable income for the year, they may face a federal marginal rate of up to 37%, further dropping their take-home amount to $267.87.
Michigan also withholds 4.25% of the total winnings for state income tax, an $18 million deduction in this case.
If they choose the installment route the winner’s annual payments of around $28 million could drop to $17.7 million, if the 37% federal marginal rate is applied.
Monday’s winner had to overcome abysmal odds of 1-in-292.2 million to win the Powerball jackpot. This is slightly better than the Mega Millions jackpot’s even worse odds of 1-in-302.6 million.
- That is the total number of billion-dollar jackpots won in 2023—all by single ticket holders—the most in a single calendar year. In total, there have only been nine billion-dollar jackpots in U.S. history, one of which was shared by three winning ticket holders.
Powerball Jackpot Hits $810 Million: Here’s How Much The Winner Would Get After Taxes (Forbes)