Powerball jackpot hits $1 billion—right here’s the after-tax payout in each U.S. state

Greater than a 12 months after the Powerball jackpot final topped $1 billion, the prize has climbed again to that stage forward of Saturday evening’s drawing at 10:59 p.m. ET.

After 39 drawings with no winner, the $1 billion prize ranks because the sixth-largest jackpot within the sport’s historical past, in keeping with the consortium that runs the lottery. The final $1 billion jackpot was claimed in April 2024, and the largest since then was a $526.5 million win in March.

To assert the prize, you may have to beat odds of 1 in 292,201,338 and match all six numbers, together with the purple Powerball. Smaller prizes are additionally accessible, together with $1 million for matching all 5 white balls with out the Powerball.

Winners can select between two payout choices: the total jackpot unfold out as annual funds over 30 years or a lump-sum money choice price slightly below half the marketed prize.

Regardless of which choice you choose, the Inner Income Service takes a reduce. Winnings are thought of taxable revenue, so 24% is withheld instantly. However the windfall would virtually definitely put you within the prime 37% federal tax bracket, so anticipate to pay the remaining if you file your 2025 tax return.

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On prime of that, most states levy their very own revenue taxes, starting from 2.5% to 10.9%. Eight states do not tax lottery winnings in any respect: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

It is price noting that 5 states do not take part in Powerball: Alabama, Alaska, Hawaii, Nevada and Utah.

Based mostly on a prime federal fee of 37%, here is what the overall after-tax payout would appear like in every state and Washington, D.C., for each the lump sum and the 30-year annuity, in keeping with USAMega.com.

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