Topline
The Powerball jackpot rose to $1.55 billion—the third largest in U.S. history—after no tickets matched all six numbers drawn on Saturday night, although the winner will end up with a much smaller amount after paying their tax bill.
Powerball lottery tickets are displayed at the New Hampshire General Store along Route 93 South, … [+] Friday, Oct. 6, 2023, in Hooksett, N.H. The upcoming $1.55 billion Powerball jackpot is the third-largest prize. (AP Photo/Charles Krupa)
Key Facts
If a winner emerges in the next draw, they can choose between a $1.55 billion payout spread over 30 annual installments or a lump sum of $679.8 million—usually the more popular choice.
The lump sum payout will drop to $516.6 million after a mandatory federal tax withholding of 24%.
Depending on their taxable income for the year, the winner could face a federal marginal rate of up to 37%, further slashing the amount to $428.3 million.
Under the installment route, the winner will get annual payments of around $51.67 million on average, which could drop to $32.6 million if the 37% federal marginal rate is applied.
Depending on their state of residence, the winner 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.
The odds of winning any prize—including small-dollar prizes—are 1-in-24.9, while the odds of winning the Powerball jackpot are 1-in-292.2 million.
What To Watch For
The next drawing will take place Monday night.
Big Number
12. That’s how many winning tickets took home at least $1 million in Saturday’s drawing, according to Powerball. Ten tickets—one in California, one in Kansas, one in Louisiana, two in Massachusetts, one in Michigan, one in Ohio, two in Texas and one in Wisconsin—took home $1 million prizes, and two tickets—one in Iowa and one in Maine—each took home $2 million prizes.
Surprising Fact
This is the first time in Powerball’s history that back-to-back jackpot cycles have generated billion-dollar prizes, the company said. The last jackpot was won in July and was worth $1.08 billion. The Powerball and Mega Millions have worsened players’ odds in recent years by increasing the pool of numbers that the lotteries can select, causing total jackpots to soar as it often takes weeks for a winning ticket to be selected.
Further Reading
MORE FROM FORBESPowerball Jackpot Rises To $1.4 Billion-Here’s What The Winner Will Take Home After TaxesBy Siladitya RayMORE FROM FORBESPowerball Jackpot Surges To $1.2 Billion-Here’s What The Winner Will Take Home After TaxesBy Siladitya Ray
