After you tack on additional taxes, you’ll see roughly 37% of your prize money withheld. While there are nine states that do not have a state lottery withholding on winnings, including Tennessee, every state lottery has to withhold 24% in federal tax on prizes this large. Win the Powerball jackpot? Think twice before taking the cash

Opting for the annuity payout doesn’t guarantee you’ll be a billionaire, though. If you win the jackpot and want your money right away, you’ll want to opt for the cash option, and if you want the largest payout in the end, you’ll want the annuity option.

That means for this jackpot, Powerball officials estimate they’ll have $643.7 million in the prize pool at the time of the drawing and that that is enough to fund the annuity option. The cash option (which you may want to think twice about taking) is what Powerball officials consider to be the amount of money needed to fund the annuity option. The annuitized option is represented by the estimated jackpot size of $1.4 billion, while the lump sum is the cash value - $643.7 million for the current series. Powerball jackpot winners can either take their winnings as a lump sum or an annuitized option of a one-time payment, followed by 29 annual payments that grow by 5% each year. These are the best, worst states to win the lottery inĪs fun as it is to fantasize about scoring a $1.4 billion paycheck, anyone lucky enough to beat the overwhelming odds to win the jackpot will be taking home far less than that.įirst, how the jackpot is paid out. $1.337 billion (Mega Millions): JIllinois history, though it could grow again before the next drawing: It’s also the fifth-largest lottery prize in U.S. However, if you’re lucky enough to win during Saturday’s drawing, you should know - you won’t exactly be an instant billionaire.Īt its current size, the jackpot ranks as the third-largest in Powerball history, coming in behind a $2.04 billion jackpot hit last November in California and a $1.586 billion jackpot split by three tickets (California, Florida, and Tennessee) in 2016. (NEXSTAR) - After more than 30 consecutive drawings without a winner, the Powerball jackpot has swelled to an estimated $1.4 billion.

Current powerball jackpot