(NEXSTAR) — The Powerball jackpot has increased once more. With no winner in Monday evening’s draw, the grand prize has now reached an estimated $643 million, carrying a cash option of $290.6 million. It’s even possible it could rise higher before the Wednesday draw.
Whether the Powerball prize stays at $643 million or escalates further, winners should expect to receive considerably less due to taxation if they manage to defy the odds on Wednesday.
Choosing either the annuitized prize or a lump sum will result in an initial 24% federal tax deduction. Including other taxes, the total reduction could be around 37% of your winnings.
Only a few states do not impose a state lottery tax. In these states, winners would retain a larger portion of their prize money after taxes are deducted from the jackpot.
The total annuity prize, set at $643 million before tax, distributed over three decades, would be approximately $406.4 million based on an analysis by USA Mega. Opting for the cash payout, which financial advisers lean toward, would leave you with an estimated $183.1 million.
While both are far less than the advertised annuitized and cash prizes, winners in some states have it worse.
Among states that impose lottery taxes, Arizona claims the lowest rate, as reported by USA Mega. Here, a Powerball winner might procure a cash prize of approximately $175.9 million or choose the annuitized option to receive about $390.3 million over 30 years.
A winner in New York would take home far less after state tax withholdings. USA Mega found the payouts there would be about $336.3 million in annuitized payments or $151.4 million with the cash option — barely more than half of the advertised estimated prize amounts.
Ready to find out how much you will (or will not, depending on how you look at it) take home, should you win the Powerball jackpot on Wednesday? The interactive map below shows the estimated annuitized or cash payouts, post-tax, in each state. You’ll notice a few states are gray on the map — these do not participate in Powerball or Mega Millions.
It’s important to remember that these are estimates. The jackpot could go up or down before the next drawing. Plus, a jackpot can be split between multiple winners. While the odds of winning the Powerball are 1 in 292.2 million, more than 15 have been split by two or more tickets that matched the winning numbers.
If you’re lucky enough to win the jackpot, even if you aren’t the sole winner, experts recommend moving quickly to assemble a team that includes an attorney, a tax advisor and a financial advisor. They also encourage protecting your ticket and keeping your victory a secret for as long as possible.
At its estimated value, the current Powerball jackpot ranks as the largest of the year, surpassing a $515 million prize won by a ticket sold in California in March. It’s also now the largest jackpot since a $1.326 billion payout was secured by a ticket in Oregon in April 2024.
The next drawing is scheduled for 10:59 p.m. ET on Wednesday. Powerball tickets are $2 each and are sold in 45 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
