Current:Home > Contact-usIf you in the $935 million Powerball, just how much would you have to pay in taxes? A lot.-DB Wealth Institute B2 Expert Reviews
If you in the $935 million Powerball, just how much would you have to pay in taxes? A lot.
View Date:2024-12-23 22:34:46
In the end, it's one for you and 19 for the taxman.
If there is a winner for Saturday's Powerball jackpot, they won't take home the entire estimated $935 million prize, even if they are the only ticket with the right six numbers.
The prize is taxed if a person takes the annuity option − which is what the advertised jackpot figure represents − or the lump sum. A 2018 USA TODAY analysis recommended taking the lump sum.
If a winner joins the ranks of the luckiest people alive, like the New Jersey person that won Tuesday's Mega Millions jackpot, there will be a hefty tax bill to pay. (Though, let's be honest they can cry about it in their piles of new money.)
Here's what to know about taxes on lottery winnings.
Federal taxes on Powerball wins
Federal lottery taxes are determined by the income bracket the winnings fall into.
Currently the two highest income brackets are taxed at 37% for incomes over $578,125 and 35% for incomes over $231,250.
The governing lottery body withholds 24% of the prize automatically, leaving the balance to be paid by the winner, according to Lottery USA.
If a sole winner of Saturday's prize is taxed up to 37% and lives in a state where the only taxes required are federal, they will take home an estimated $283,346,573 from the cash option, according to Lottery USA's tax calculator.
State taxes on Powerball wins
Most states impose a tax on lottery wins.
New York levies the highest tax on wins at 10.9%, followed by Maryland (8.9%) and the District of Columbia (8.5%), according to Lottery USA.
If the Powerball winner lives in New York − assuming there are no deductions − they will have to pay $49,017,300 on the cash option, according to Lottery USA's tax calculator.
There are ten states and territories that do not tax lottery winners. They are:
- California
- Delaware
- Florida
- New Hampshire
- Puerto Rico
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
Where to purchase lottery tickets
Tickets can be purchased in person at gas stations, convenience stores and grocery stores. Some airport terminals may also sell lottery tickets.
You can also order tickets online through Jackpocket, the official digital lottery courier of the USA TODAY Network, in these U.S. states and territories: Arizona, Arkansas, Colorado, Idaho, Massachusetts, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Puerto Rico, Texas, Washington D.C. and West Virginia. The Jackpocket app allows you to pick your lottery game and numbers, place your order, see your ticket and collect your winnings all using your phone or home computer.
Jackpocket is the official digital lottery courier of the USA TODAY Network. Gannett may earn revenue for audience referrals to Jackpocket services. Must be 18+, 21+ in AZ and 19+ in NE. Not affiliated with any State Lottery. Gambling Problem? Call 1-877-8-HOPE-NY or text HOPENY (467369) (NY); 1-800-327-5050(MA); 1-877-MYLIMIT (OR); 1-800-981-0023 (PR); 1-800-GAMBLER (all others). Visit jackpocket.com/tos for full terms.
veryGood! (9)
Related
- After Baltimore mass shooting, neighborhood goes full year with no homicides
- Disney World's crowds are thinning. Growing competition — and cost — may be to blame.
- Google shares drop $100 billion after its new AI chatbot makes a mistake
- The U.S. needs more affordable housing — where to put it is a bigger battle
- Lane Kiffin puts heat on CFP bracket after Ole Miss pounds Georgia. So, who's left out?
- Titanic Submersible Disappearance: Debris Found in Search Area
- Titanic Sub Search: Details About Missing Hamish Harding’s Past Exploration Experience Revealed
- Expansion of I-45 in Downtown Houston Is on Hold, for Now, in a Traffic-Choked, Divided Region
- Nelly will not face charges after St. Louis casino arrest for drug possession
- One of the Country’s 10 Largest Coal Plants Just Got a Retirement Date. What About the Rest?
Ranking
- Spirit Airlines cancels release of Q3 financial results as debt restructuring talks heat up
- This $23 Travel Cosmetics Organizer Has 37,500+ 5-Star Amazon Reviews
- Inside Clean Energy: In South Carolina, a Happy Compromise on Net Metering
- Noxious Neighbors: The EPA Knows Tanks Holding Heavy Fuels Emit Harmful Chemicals. Why Are Americans Still at Risk?
- Over 1.4 million Honda, Acura vehicles subject of US probe over potential engine failure
- This week on Sunday Morning (July 16)
- ESPYS 2023: See the Complete List of Nominees
- Save $155 on a NuFACE Body Toning Device That Smooths Away Cellulite and Firms Skin in 5 Minutes
Recommendation
-
Young Black and Latino men say they chose Trump because of the economy and jobs. Here’s how and why
-
Sarah Jessica Parker Weighs In on Sex and the City's Worst Man Debate
-
Collin Gosselin Pens Message of Gratitude to Dad Jon Amid New Chapter
-
World Meteorological Organization Sharpens Warnings About Both Too Much and Too Little Water
-
'Wanted' posters plastered around University of Rochester target Jewish faculty members
-
Inside Clean Energy: The New Hummer Is Big and Bad and Runs on Electricity
-
Amazon Prime Day Is Starting Early With This Unreal Deal on the Insignia Fire TV With 5,500+ Rave Reviews
-
Missing Titanic Submersible: Former Passenger Details What Really Happens During Expedition