2022-11-07 08:00:00
Monday’s Powerball jackpot sits at $1.9 billion, the largest lottery jackpot in history. MediaNews Group/Orange County Register/Getty Images
After 40 consecutive drawings, there’s been no winner for the Powerball—putting the new jackpot at $2.04 billion, the largest prize in history. The previous record Powerball pot was back in 2016, when it reached $1.58 billion. It was split by three winners in California, Florida, and Tennessee.
The Powerball figures were drawn Tuesday morning following a nearly 10-hour delay. That helped the jackpot climb from $1.9 billion to over $2 billion.
Winners can choose to receive a one-time lump sum payment or an annuity, with the prize being paid out over 30 years. Most financial experts advise winners take the lump sum, and that’s what most winners opt to do. If there’s a winner who chooses the lump sum option, they might take home roughly $929.1 million, the second-highest cash prize ever.
The winner—or winners—will owe 24% to the IRS in federal taxesand then additional taxes when they file (winning that much money will put you in the top federal tax bracket).
Then there are the state taxes. Fourteen states don’t levy additional tax on lottery winnings: Alabama, Alaska, California, Delaware, Florida, Hawaii, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Utah, Washington, and Wyoming.
Winners in other locations might pay as much as 10.75% in state or local taxes, according to USA Mega.
View the State Tax Withholding chart
- Washington, D.C.: 10.75%
- Maryland: 8.95%
- New York: 8.82%
- New Jersey: 8%
- Oregon: 8%
- Wisconsin: 7.65%
- Minnesota: 7.25%
- South Carolina: 7%
- Connecticut: 6.99%
- Montana: 6.90%
- Idaho: 6.50%
- West Virginia: 6.50%
- Vermont: 6%
- Rhode Island: 5.99%
- New Mexico: 5.90%
- Georgia: 5.75%
- Arkansas: 5.50%
- Iowa: 5%
- Kansas: 5%
- Kentucky: 5%
- Maine: 5%
- Massachusetts: 5%
- Mississippi: 5%
- Nebraska: 5%
- North Carolina: 4.99%
- Illinois: 4.95%
- Ohio: 4.80%
- Louisiana: 4.75%
- Oklahoma: 4.75%
- Arizona: 4.50%
- Michigan: 4.25%
- Colorado: 4%
- Missouri: 4%
- Virginia: 4%
- Indiana: 3.23%
- Pennsylvania: 3.07%
- North Dakota: 2.90%
The drawing was originally scheduled for Monday, Nov. 7, at 11 p.m. ET. but was delayed until Tuesday morning.
1703396210
#youll #pay #taxes #Powerball #billion #jackpot
