Powerball Jackpot Hits $930 Million, But Winners Face Crushing Taxes
The Powerball jackpot has reached a staggering $930 million, making it the third-largest lottery prize of 2025 so far. However, for the eventual winner, the payout will be significantly smaller after taxes and deductions.
In Monday's drawing, no tickets matched all six numbers, leaving the massive prize intact. If a winner emerges in the next draw, they'll have two options: take $930 million split across 30 annualized payments or receive a lump-sum cash prize of $429 million.
While choosing the lump sum may seem like the more lucrative option, it comes with a hefty federal withholding of 24% first, which reduces the winnings to around $326 million. With an additional 37% federal marginal rate potentially applying depending on their taxable income, the winner's take-home pay could be as low as $270 million.
If the annual payment route is chosen, winners would receive $31 million annually, but after the federal marginal rate kicks in, it drops to $19.5 million. The good news is that not all states tax lottery winnings equally – some like Texas, Florida, and California don't charge a state tax – while others like New York impose a 10.9% tax.
The odds of winning this massive jackpot are astronomically low at 1 in 292.2 million, making it worse than even the notoriously tough Mega Millions draw with odds of 1 in 290.4 million.
The Powerball jackpot has reached a staggering $930 million, making it the third-largest lottery prize of 2025 so far. However, for the eventual winner, the payout will be significantly smaller after taxes and deductions.
In Monday's drawing, no tickets matched all six numbers, leaving the massive prize intact. If a winner emerges in the next draw, they'll have two options: take $930 million split across 30 annualized payments or receive a lump-sum cash prize of $429 million.
While choosing the lump sum may seem like the more lucrative option, it comes with a hefty federal withholding of 24% first, which reduces the winnings to around $326 million. With an additional 37% federal marginal rate potentially applying depending on their taxable income, the winner's take-home pay could be as low as $270 million.
If the annual payment route is chosen, winners would receive $31 million annually, but after the federal marginal rate kicks in, it drops to $19.5 million. The good news is that not all states tax lottery winnings equally – some like Texas, Florida, and California don't charge a state tax – while others like New York impose a 10.9% tax.
The odds of winning this massive jackpot are astronomically low at 1 in 292.2 million, making it worse than even the notoriously tough Mega Millions draw with odds of 1 in 290.4 million.
and hoping to win big... but then I read this part and I'm like "wait a minute"... $270 million after taxes? That's not even close to the original prize! 
It's crazy how the numbers add up, isn't it? Like, 24% first and then an additional 37%, that's just ridiculous 
. And some states don't tax it at all, so that's a total game-changer right there 
. I mean, what are the chances of winning anyway? 1 in 292 million? That's like finding a needle in a giant haystack! 
! The odds are crazy low though, so I guess you'd have to be a total lottery stalker to even get close 
And it's not like the winner can just avoid taxes by moving to Texas or something, most states will still take their cut. The annual payment option doesn't seem that great either, I mean $19.5 million a year is still pretty meh 
. I'll stick to my free money from winning online contests, thanks 
.