Powerball Jackpot Reaches $875 Million—Third-Largest Ever—Here’s What The Winner Would Take Home After Taxes

Topline

The Powerball jackpot jumped to an estimated $875 million for its next drawing on Saturday, the third-largest in its history, as the jackpot continues to swell since the last winning ticket was drawn in April.

The Powerball jackpot reached an estimated $875 million for Saturday.

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Key Facts

The winner has the option to receive the $875 million in 30 annual installments over 29 years, or as an up-front, $441.9 million lump sum.

A mandatory 24% federal tax withholding would reduce the lump-sum jackpot to $335.8 million, while a federal marginal rate as high as 37%—depending on the winner’s taxable income—could reduce the winnings to as low as $278.3 million.

Lottery winnings are also subject to taxes in some states, from as low as 2.5% in Arizona—an estimated $11 million—to 10.9% in New York, an estimated $48 million.

Saturday’s jackpot is the third-largest in Powerball history, the lottery said, trailing a $2 billion jackpot won last November and a nearly $1.6 billion jackpot in 2016.

Two tickets in Wednesday’s drawing won $1 million prizes, while 26 won $50,000 and 10 won $150,000.

Surprising Fact

The jackpot is also the seventh-largest lottery jackpot ever, trailing a $1 billion Mega Millions jackpot won in 2021. Of the 10 largest jackpots ever, six were won over the last two years.

Big Number

1.8 million. That’s how many winning tickets were sold for Wednesday night’s drawing, which won a combined $16.5 million.

Tangent

The Mega Millions jackpot has reached $560 million, or a $281.1 million lump sum before taxes. A 24% federal tax withholding would reduce the jackpot to $213.6 million, while a federal marginal rate as high as 37% could reduce it to as low as $177 million.

Key Background

There are one in 292.2 million odds of winning the Powerball jackpot, which were decreased from one in 175.2 million after the lottery decreased the pool of white balls contestants could choose from in 2015. The Mega Millions lottery enacted similar changes, decreasing the odds of winning from one in 258.9 million to one in 302.6 million. The Powerball previously eclipsed the $750 million mark in February, when a $754.6 million jackpot was won—the sixth-largest ever.