- Powerball Jackpot for Saturday’s draw third largest for 2025
- Winner has option of annualized payments or one time lump sum payment
- State taxes may also come into play
The Powerball Jackpot has once again hit astronomical heights, passing the $700 million barrier, after no tickets matched all six numbers in last night’s draw.
That means the jackpot for the next draw, this Saturday, now sits at USD $719 million. Last fall the Powerball Jackpot grew to $1.787 billion, positioning it as the second largest prized jackpot won in U.S. lottery history (the largest being the $2.04 billion won in 2022). Two separate winners won that jackpot in September, including a Texas trust, which claimed the annuitized grand prize. Them other winner was in Missouri.
Still, you have to read between the lines a little with Powerball draws. The cash value for Saturday’s draw is $333.3 million. If there is a winner Saturday, that person will have a choice to taking the $719 million, in annual payments over 30 years, or a one-time $333.3 million lump sum payout.
Claiming Location Matters
A mandatory federal withholding of 24% is applied if the winner opts for the $333.3 million, reducing the winnings to $253.3 million. There would also be a federal tax rate as high at 37% depending on the winner’s taxable income, taking the amount down to $210 million.
If the winner opts for those annual payments, the $24 million drops to $15.1 million if that federal 37% marginal rate is applied.
Claiming location matters – places like California, Florida, New Hampshire, Texas, and Tennessee don’t have state taxes on Powerball winnings. New York however does, slapping on 8.82% state tax, plus New York City takes another 3.876% if you live there.
Lump Sum $333.3 Million Payment
There were four $1 million winners last night, in California, New Jersey, Pennsylvania and South Carolina, but no $2 million winners.
Powerball costs $2 per play. Players choose five numbers between 1 and 69 for the white balls, then select one number between 1 and 26 for the red Powerball. You win by matching all five white balls in any order and the red Powerball.
Powerball draws are broadcast Monday, Wednesday and Saturdays at 9:59 p.m.
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