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The Powerball grand prize has surged to a staggering $570 million after Saturday night’s drawing failed to produce a winner. However, the eventual victor will see a significant portion of this amount deducted due to taxes.
Saturday’s draw did not yield any tickets that matched the complete set of winning numbers—6, 7, 12, 47, 53, and the Powerball number 21. Consequently, the jackpot has increased, with the next opportunity to win set for Monday night.
Should a lucky ticket match all the numbers, the winner will have the choice between two options: receiving the entire $570 million spread out over 30 annual payments or opting for a one-time cash payout of $266.9 million.
The more common preference, the lump sum option, comes with a 24% federal withholding tax right off the bat, reducing the immediate payout to $202.8 million.
Furthermore, the winner is likely to be subjected to the top federal marginal tax rate of 37%, which would slice the final amount down to $168.1 million.
Alternatively, by choosing the annuity option, the winner would enjoy annual payments, each averaging $12 million, post-federal tax deductions.
If the winner instead picks the annuity, they would receive yearly payments worth an average of $12 million each year after federal taxes are applied.
Winners also have to pay state taxes on their prizes, which range from 0% in states including California, Texas and Nevada to a high of 10.9% in New York.
What To Watch For
The next Powerball drawing is scheduled for Monday night at 10:59 p.m. EST, and is streamed live on Powerball’s website. If no ticket matches all six numbers again on Monday night, the next drawing will take place on Wednesday.
