ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Powerball's $1 Billion Jackpot Has a Winner: Here's What They Will Take Home

The winner will have two payout options to choose from. The full amount comes in annually over the course of 30 years or an upfront payout.
PUBLISHED APR 27, 2024
Cover Image Source: Freepik | Diana Grytsku
Cover Image Source: Freepik | Diana Grytsku

Powerball's Jackpot which climbed up to $1 billion with 38 consecutive drawings without a grand-prize winner finally has a winning ticket sold in California. This is the third-highest jackpot in the Powerball lottery's history, as reported by CNBC. However, as we all know, this is not the final amount the winner will take home. The final payout they choose will vary by millions of dollars and also if the state charges taxes on the winnings.

Image Source: Nataliya Vaitkevich/Pexels
Image Source: Nataliya Vaitkevich/Pexels

The winner will have two payout options to choose from: The full amount coming in annually over the course of 30 years or an upfront payout. All winners will have to pay an upfront federal withholding of 24% on the winnings which will be considered as income. On top of this, there's an additional 13% in federal taxes which will be applicable when they file their tax returns. After this, the winner will be obligated to pay state income taxes which range from 2.9% to 10.9% depending on where the winner resides.

Fun fact: There are five states that don't participate in the Powerball's jackpot—Alabama, Alaska, Hawaii, Nevada, and Utah. There are also eight states that charge no taxes on lottery winnings—California, Florida, South Dakota, Tennesse, Texas, Washington, Wyoming, and New Hampshire, per CNBC.

Here is how much you have to pay depending on the state, assuming you have won the $1 billion jackpot and have to pay the maximum percentage of federal tax, which is 37%, per a PWC report.

The final payment will vary depending on which state you live in. For example in Arizona, if you choose a lump sum, it will get you around $312,701,045 while an annual pay will get you $606,111,360. In California, with a lump sum payout, you can get $325,621,045 while the annual payment will get you $631,111,350 in total. Colorado's tax rates will allow you to take home $302,881,845 if you choose lump sum and $587,111,340 if you choose annual payment, while in Delaware you will be able to take $291,512,245 with the lump sum option and $565,111,350 with the annuity option.

Image Source: Peaton Hugo/Pexels
Image Source: Peaton Hugo/Pexels

In Florida, you can get $325,621,045 with lump sum and $631,111,350 with an annuity, while in Idaho you'll earn $295,646,645 in a lump sum and $573,111,360 in an annuity. In North Dakota, the winner can take home $310,633,845 with the upfront payment and $602,111,340 if they choose an annual payout. In Wyoming, the winner will earn $325,621,045 through a lump sum payout and $631,111,350 with annual payments. If the winner resides in Texas then they will be able to take home $325,621,045 if they choose the lump sum option and $631,111,350 if they opt for the annual payments.



 

The $2.04 billion Powerball jackpot was bagged by a winner in 2022 marking the fifth billion-plus winning amount in the history of the lottery. This particular winning prize was more than any lottery jackpot ever and holds a world record. The pre-tax lump sum amount for this payment was $997.6 million, as per CNBC. The second highest prize money ever recorded in the history of this lottery was $1.59 billion which was won by John and Lisa Robinson, residents of Tennessee. 

In another recent news from the world of lottery, a mother and son, residents of North Carolina whose lives changed for the better when they won two lotteries in a span of one month. The son first claimed a grand prize of $369,627 only to be followed by another grand prize of $500,000 won by the mother.



 

Editor's note: This article was originally published on January 22, 2024. It has since been updated.

MORE ON MARKET REALIST
The model of the TV appeared to be a rear projection Samsung HCL552W, which was sold in the US market in 2002.
3 hours ago
The man wasn't convinced that he had actually won until he personally turned up to claim the prize.
9 hours ago
Walmart introduced the new policy and restrictions after another retailer, Target, did the same.
13 hours ago
The collection remained hidden for decades in the vault of a Philadelphia bank, unknown to collectors.
1 day ago
The guest finally sought help from the Reddit community and found some support as well as suggestions.
1 day ago
The user also highlighted the need for better tech at Costco to ensure that people can leave quickly.
1 day ago
The rapper later joked that Taco Bell would have to change its slogan to 'We messed with the bull and got the horns."
2 days ago
The marine pilot from Stafford took less than a second to win the game.
3 days ago
The child ended up spending a lot more than the price of the toy that the mother refused to buy.
3 days ago
The musician made sure that the crew collected their details and reiterated that he was serious.
3 days ago
Several people on Reddit also suggested that some rare coins in the jar were worth more than the face value.
3 days ago
Collectors have long been looking for the 1894-S Barber dimes which are worth over 2 million each.
4 days ago
In the very first week of replacing the old host Pat Sajak, audiences are saying that Seacrest is having a rocky start.
4 days ago
He is known for keeping props related to the most notable characters that he has ever played.
4 days ago
Her ex-husband found out about the money when the lottery authorities sent a letter to the address two years later.
4 days ago
Since the Federal Reserve estimates the lifespan of a $20 bill to be 7.8 years, it was a rare find.
5 days ago
The new deal comes at a time when Costco is offering major discounts to members for holiday season.
5 days ago
The man even used his historic win in the U.S. to raise awareness about his people and their history.
5 days ago
The YouTuber used the most minor issues in the car to negotiate a great deal for the popular EV.
5 days ago
McKayla also shared several instances that convinced her she was talking to the real actor.
5 days ago