Powerball Jackpot Reaches $633 Million—Here’s What A Winner Could Take Home After Taxes - Forbes

What the report says

Forbes reported that the Powerball jackpot has climbed to an estimated $633 million after Saturday night’s drawing produced no ticket matching all six numbers. The numbers drawn were 3, 4, 24, 36, 47 and the Powerball 17. The next drawing is scheduled for Monday at 10:59 p.m. EDT, with Powerball offering livestreams through its website and YouTube channel.

According to Forbes, a winner in Monday’s drawing could choose either the full advertised jackpot paid over 30 annual installments or an immediate cash option of about $277.3 million. The cash choice, which Forbes noted is typically more popular, would first be reduced by 24% federal withholding to roughly $210.7 million. If taxed at the top 37% federal marginal rate, the eventual federal-tax-adjusted amount could be about $174.7 million, before any applicable state taxes.

Forbes said the annuity option would produce 30 payments that increase by 5% annually, totaling about $400 million after applying the same federal tax assumptions over 29 years. State taxes could further reduce winnings, with New York’s top rate cited at 10.9%, while some states including Texas, California and Florida do not tax lottery prizes.

The jackpot growth follows Powerball’s recent expansion to include U.K. ticket sales, and Forbes said Saturday marked the second drawing with U.K. participation. Powerball’s grand-prize odds remain about 1 in 292.2 million. Six tickets matched the five white balls Saturday for $1 million prizes, sold in Michigan, Mississippi, North Carolina, Pennsylvania, Texas and Washington.