The Powerball jackpot for Wednesday night’s drawing has ballooned to $975 million after no winning tickets were sold for Monday’s $905 million grand prize. Monday’s winning numbers were 6, 37, 54, 55, 64 with a Powerball of 10.
Tax Implications of Winning
The nearly $1 billion jackpot for the next drawing is for a single-winning ticket who chooses an annuity option, paid over 30 years. Winners almost always opt for cash prizes, which would be $422.3 million — before taxes. The prize is subject to an automatic federal withholding, with the IRS levying 24% on winnings of more than $5,000.
If you choose the $422.3 million cash option, the 24% withholding automatically reduces your prize to about $320.9 million, with $101 million going straight to the federal government. And when you file your 2026 returns, plan on paying another 13% in federal taxes. That’s because the millions you win from the lottery pushes you into the top tax bracket of 37%. Your total lottery prize after paying the federal income tax is about $279.2 million.
State Taxes on Lottery Winnings
There are also state taxes in most jurisdictions, which range from a low 2.9% in North Dakota to 10.9% in New York. But if you’re lucky enough to live in California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington or Wyoming, you won’t pay any state taxes on your winnings.
Original reporting: Richardson, TX News (HLL/CB) — read the source article.
