As the Powerball jackpot soars to $543 million, lottery enthusiasts from coast to coast are mapping out their potential windfalls. But, how much would they actually take home? A detailed map now shows potential after-tax winnings state by state, with both the 30-year annuity option, as well as the cash payout.
The current jackpot is the result of 28 consecutive draws without a grand prize winner, placing it as the 23rd largest in lottery history. Should a lucky winner strike gold in the upcoming draw, they face a tough decision—opting for the 30-year annuity or the immediate cash lump sum.
How Much Would I Take Home if I Won the Lottery?
Choosing the cash option presents an instant pre-tax fortune of roughly $272.2 million. However, after a 24 percent federal tax withholding, the amount shrinks to $206.9 million. Additional state taxes could potentially reduce the lump sum even further. For example, a Powerball winner in New York who chose the cash option would walk away with $141.85 million after taxes—roughly 26 percent of the total $543 million.
Alternatively, the annuity option offers a starting annual payment of $18.1 million, with the potential to decrease to $11.4 million after federal taxes. After paying New York state taxes, a winner in the Big Apple who chose the annuity would receive $9.47 million per year, totaling $284 million after 30 years.
The annuity option would yield 52.3 percent of the total Powerball prize pool, compared to the 26 percent the winner would receive if they chose the cash payment.
“I would advise any of my clients to take the annuity,” Jaylen Blackwell, a senior advisor at Chicago-based Windgate Wealth Management, told Newsweek. The advisor said there are specific situations in which he would advise taking the lump-sum, but “99 [percent]” of his clients wouldn’t fall in that category.
He added that taking the cash option is risky for many reasons, including a “shock” effect that can overwhelm individuals unaccustomed to managing such substantial sums. “The sudden influx of wealth can lead to impulsive decisions and rapid depletion of assets if not carefully managed,” Blackwell said. “The annuity, by contrast, provides a structured income over time, allowing for a more gradual adaptation to newfound wealth and a reduced risk of financial missteps.”
With the next Powerball drawing scheduled for Monday, December 18, participants can purchase tickets until 9:45 p.m. that evening. Tickets cost $2, with additional options such as Power Play and Double Play available for extra fees, multiplying non-jackpot prizes and offering another chance to win.
Historical Jackpots and Winning Odds
The Powerball’s modern history has been marked by sizeable jackpots, including the record $2.04 billion won by California resident Edwin Castro in November of last year. Castro chose the cash option, immediately receiving $997.6 million, which came out to about $628 million after taxes.
Recent changes to the Powerball and Mega Millions formulas have made grand prizes more elusive but have increased the chances of winning smaller prizes. The odds of winning the Powerball are 1 in 292.2 million, according to an Associated Press report.
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Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.