Powerball Jackpot Rises To $546 Million—Here’s What The Winner Could Take Home After Taxes
Topline
The Powerball jackpot rose to $546 million—the third biggest lottery prize of the year so far—after no tickets matched all six numbers drawn on Wednesday night, although the eventual winner will take home a much smaller payout after taxes and deductions.
The Powerball jackpot rose to $546 million, the third biggest lottery prize of the year so far.
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Key Facts
The six numbers drawn on Wednesday night were 29, 39, 43, 51, 65 and Red Powerball 23.
If a winner emerges in the next draw, they can pick between taking the $546 million prize spread over 30 annual installments or a one-time cash payout of $255 million—the preferred choice for most winners.
If the cash prize is chosen, the winnings will first fall to around $194 million after a mandatory federal withholding of 24% is applied.
The winner would likely face a federal marginal rate as high as 37%, depending on their taxable income, further reducing the winnings to around $160.6 million.
If the installments route is chosen, the winner’s annual payments of around $18.2 million would fall to $11.47 million after the 37% federal marginal rate is applied.
Depending on their home state, the winner could face additional taxes, as some states, such as New York, tax lottery winnings at 10.9%, while others, such as Texas, Florida, and California, don’t.
What To Watch For
The next Powerball jackpot draw is set to take place on Saturday night. The Mega Millions lottery will hold a drawing on Friday night for a jackpot that has now risen to $965 million.
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