Powerball cash prize after taxes
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Powerball's jackpot rose to an estimated $635 million after no ticket matched all six numbers Monday.
The cash option is $267.5 million before taxes, far less than the advertised figure.
Background
Powerball is a multi-state US lottery whose advertised jackpot is an annuity value paid over 30 installments that increase each year; most winners take a lump sum worth considerably less. The prize has been growing since an August ticket sold in Illinois matched for a $1.04 billion grand prize, the eighth-largest in Powerball history. Because states set their own lottery taxes, the same jackpot pays out differently depending on where the winner bought the ticket.
How it unfolded
- Apr 6, 2024Oregon claimed its first billion-dollar lottery prize when a single Powerball ticket sold in Portland matched all six numbers for an advertised $1.326 billion; the winners took a cash option of about $621 million before taxes.
- Aug 2026A ticket sold in Illinois matched the winning numbers for a grand prize worth $1.04 billion, the eighth-largest prize in Powerball history; the jackpot has been growing since then.
- Oct 16, 2026Powerball was estimated at $600 million for Saturday night with a cash option of about $246 million, ranked as the 17th-largest in game history.
- Oct 18, 2026The jackpot rose to $607 million after no winning tickets were sold for Saturday night's drawing; a winner could take 30 annual installments or a lump sum of $255.7 million immediately.
- Oct 19, 2026No grand prize winner in the Monday drawing; one Michigan ticket won $1 million by matching the five white balls, with numbers 6-31-32-42-48, Powerball 23 and a 4x Power Play.
- Oct 21, 2026The jackpot rose to an estimated $635 million for Wednesday, October 21, after no ticket matched all six numbers Monday; the advertised prize carries a cash value of $267.5 million before state and federal taxes.
Who’s saying what
- Analysts
- Forbes calculated that a 24% federal withholding tax would cut a $255.7 million lump sum to $194.3 million, and the top 37% federal rate would bring it to about $161.1 million.
- Analysts
- USA Mega, cited by WGN-TV, estimated about $379.3 million after all 30 annuitized payments or a little over $155 million with the cash payout in states without a local lottery tax.
- Caution
- WGN-TV noted that except for California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, winners owe a state lottery tax of between 2.5% and 10.9%.
- Official
- UK lottery officials said paying a jackpot winner over 30 years provides a steady, reliable income over many years, helping to support long-term financial security.
Still unverified
The after-tax estimates do not account for the possibility of more than one ticket winning the jackpot; in that case winnings are evenly divided among the winners.