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 guest had no idea about the item being a Tiffany product and being embedded with a rare gem.
10 hours ago
The host was baffled by the goof up that the contestant made between two words.
11 hours ago
Carey showed that he has got the weapon of sarcasm, and he isn't afraid to use it.
12 hours ago
Whatever the host was expecting, it was far away from what the contestant said on national TV.
13 hours ago
The guest was surprised to learn more about the item he had actually found on the street for free.
15 hours ago
After going through everything on the board, the player left Harvey in hysterics with his answer.
1 day ago
As it so turned out, the weird-looking floor lamp was a piece from a very famous studio.
1 day ago
Most contestants were consistently getting the answers wrong, and Harvey was worried about what was next.
2 days ago
Some claimed that they got the puzzle despite English being their second language.
2 days ago
The letter was written to a columnist in response to a piece taking a swipe at Sinatra.
2 days ago
In a special episode of Celebrity Family Feud, a WWE star decided to go for the one thing Harvey is known for.
2 days ago
Luck was shining for her as she was off to a flying start and won the car with a single card.
2 days ago
Sajak had a witty reply for the contestant who was fanboying over White during the game.
5 days ago
The model said that considering White's age she would also take the offer from Sony.
5 days ago
Sheila won a brand new entertainment unit, complete with an HD plasma TV and mini bar from Howard Miller.
6 days ago
The appraiser disclosed that Yoakum began painting in the 1960s and he created one unique piece of art every single day.
6 days ago
The entrepreneur also managed to get the sharks to taste the vegan alternative meant for pets.
6 days ago
Throughout the game Monica tried to calm her nerves by placing her right hand over her chest.
7 days ago
Harvey later realized that the contestant had a crush on him and they had a moment.
7 days ago
The host had warned the men in advance to not risk their marriage for some points.
Mar 24, 2025