Powerball Jackpot Eclipses $700 Million Barrier
Since no ticket in Friday night's draw matched all six numbers, the Powerball jackpot has once again reached unprecedented heights, surpassing the $700 million threshold.
As a result, the prize for this Saturday's draw is now USD $719 million. With its growth to $1.787 billion last fall, the Powerball jackpot became the second-largest prized jackpot in U.S. lottery history, behind the $2.04 billion won in 2022. In September, that jackpot was won by two different people, including a Texas trust that took home the annuitized maximum prize. Missouri was the location of the other winner.
Nevertheless, Powerball draws require some interpretation. The draw on Saturday has a cash value of $333.3 million. The winner on Saturday will have the option of receiving the $719 million in yearly payments over 30 years or a lump sum reward of $333.3 million.
Location Claims Are Important
If the winner chooses to keep the $333.3 million, the earnings are reduced to $253.3 million after a necessary 24% federal withholding. Depending on the winner's taxable income, the federal tax rate might be as high as 37%, reducing the total to $210 million.
Applying the federal 37% marginal rate, the $24 million becomes $15.1 million if the winner chooses to receive those yearly payments.
Location is important because states in Texas, Florida, New Hampshire, California, and Tennessee do not impose state taxes on Powerball winners. But New York does, charging 8.82% in state taxes, plus an additional 3.876% if you live in New York City.
Payment of $333.3 million in one lump sum
There were no $2 million winners last night, but there were four $1 million winners in South Carolina, New Jersey, Pennsylvania, and California.
Each Powerball play costs $2. For the white balls, players pick five numbers between 1 and 69, and for the red Powerball, they pick one number between 1 and 26. Matching the red Powerball and all five white balls in any order wins you the prize.
At 9:59 p.m. on Mondays, Wednesdays, and Saturdays, Powerball draws are televised.
