Topline
The Powerball jackpot rose to $467 million—the year’s fourth biggest lottery prize 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.
Powerball lottery prize rose to $467 million.
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Key Facts
If a winner emerges in the next draw, they can pick between taking the $467 million prize spread over 30 annual installments or a one-time cash payout of $220.7 million—the preferred option for most winners.
If the winner chooses the cash prize, their winnings will first drop to $167.7 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 $139 million.
If the installments route is chosen, the winner’s annual payments of around $15.6 million would fall to $9.8 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 drawing for the Powerball jackpot is set to take place on Saturday night. A day before that, the Mega Millions lottery will hold a drawing for a jackpot that has now risen to $843 million.