The Powerball lottery jackpot has crept up to a sizable $366 million forward of Saturday evening’s draw, however in the event you’re fortunate sufficient to win, the quantity you truly take house is probably going far much less.
It depends upon two elements: the kind of payout you selected and the state you reside in.
For the payout, you will have two choices: a lump sum paid out immediately or an annuity unfold over 30 years. With the annuity choice, you may obtain the full jackpot quantity. With the lump-sum payout, you’ll obtain 52% of the jackpot quantity, in accordance to calculations by lottery web site usamega.com.
Many winners select the lump-sum choice since the cash may be reinvested immediately, though it is much less cash total.
Beyond that, you even have to pay taxes. While state taxes differ, all winners pay an upfront federal withholding tax of 24% on the winnings. However, you may probably owe one other 13%, since 37% is the high tax bracket for single filers who earn more than $578,125 in 2023.
The 8 states where you’d take house the most cash after taxes
There are solely eight states that do not cost state taxes on lottery winnings, which suggests they provide the largest payout:
- California
- Florida
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
Residents in these states will take house the largest quantity after taxes. For the annuity choice, that is $231,691,350, and for the lump sum, it is $119,107,045.
In different states and districts, winners are topic to further state taxes that vary between 2.9% and 10.9%. Below are the 5 locations with the highest attainable tax charges on lottery winnings, in accordance to usamega.com:
- New York: 10.9%
- New Jersey: 10.75%
- Washington, D.C.: 10.75%
- Oregon: 9.9%
- Minnesota: 9.85%
A lottery winner in New York would pay the most in taxes. For a $366 million jackpot, that works out to $191,797,350 for an annuity payout and $98,506,045 for the lump sum payout. That’s tens of hundreds of thousands of {dollars} lower than what winners in states with no lottery taxes would obtain.
Depending on where you reside in New York state, you would possibly even owe extra. If you reside in New York City, you may pay an extra withholding tax of three.876%. If you reside in Yonkers, you may pay an extra withholding tax of 1.477%.
The subsequent draw is Saturday evening at 10:59 ET. To win the jackpot, you should match all six numbers from the draw. You’ll want plenty of luck, too — the odds of successful the jackpot are 1 in 292,201,338.
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