Powerball jackpot nears $1 billion—here’s after-tax payout by state

More than a year after the Powerball jackpot last topped $1 billion, the prize has climbed to $950 million ahead of Saturday night’s drawing at 10:59 p.m. ET.

After 39 drawings without a winner, it now ranks as the sixth-largest jackpot in the game’s history, according to the consortium that runs the lottery. The last $1 billion jackpot was claimed in April 2024, and the biggest since then was a $526.5 million win in March.

To claim the prize, you’ll need to beat odds of 1 in 292,201,338 and match all six numbers, including the red Powerball. Smaller prizes are also available, including $1 million for matching all five white balls without the Powerball.

Winners can choose between two payout options: the full jackpot spread out as annual payments over 30 years or a lump-sum cash option worth just under half the advertised prize.

No matter which option you select, the Internal Revenue Service takes a cut. Winnings are considered taxable income, so 24% is withheld immediately. But the windfall would almost certainly put you in the top 37% federal tax bracket, so expect to pay the rest when you file your 2025 tax return.

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On top of that, most states levy their own income taxes, ranging from 2.5% to 10.9%. Eight states don’t tax lottery winnings at all: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

It’s worth noting that five states don’t participate in Powerball: Alabama, Alaska, Hawaii, Nevada and Utah.

Based on a top federal rate of 37%, here’s what the total after-tax payout would look like in each state and Washington, D.C., for both the lump sum and the 30-year annuity, according to USAMega.com.

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