The Powerball lottery jackpot has crept up to a sizable $366 million forward of Saturday night time’s draw, however in the event you’re fortunate sufficient to win, the quantity you really take residence is probably going far much less.
It will depend on two elements: the sort of payout you selected and the state you reside in.
For the payout, you may have two choices: a lump sum paid out instantly or an annuity unfold over 30 years. With the annuity choice, you will obtain the full jackpot quantity. With the lump-sum payout, you’ll obtain 52% of the jackpot quantity, in accordance to calculations by lottery website usamega.com.
Many winners select the lump-sum choice since the cash might be reinvested instantly, though it is much less cash general.
Beyond that, you even have to pay taxes. While state taxes range, all winners pay an upfront federal withholding tax of 24% on the winnings. However, you will seemingly 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 residence 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 residence 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 doable 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 may even owe extra. If you reside in New York City, you will pay an extra withholding tax of three.876%. If you reside in Yonkers, you will pay an extra withholding tax of 1.477%.
The subsequent draw is Saturday night time at 10:59 ET. To win the jackpot, you could match all six numbers from the draw. You’ll want numerous luck, too — the odds of successful the jackpot are 1 in 292,201,338.
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