The $700 million Powerball jackpot is the fifth largest ever
It is now worth $700 million the fifth largest Powerball lottery jackpot in history are yet to be confirmed ahead of the next draw on Wednesday.
With no winner, the jackpot prize has grown in recent weeks. The all-time record jackpot is $1.586 billion, which was won in 2016. Here’s a look at the top 10 prizes of all time:
- $1.586 billion: January 13, 2016
- $768.4 million: March 27, 2019
- $758.7 million: August 23, 2017
- $731.1 million: January 20, 2021
- $700 million (estimated): October 26, 2022
- $699.8 million: October 4, 2021
- $687.8 million: October 27, 2018
- $632.6 million: January 5, 2022
- $590.5 million: May 18, 2013
- $587.5 million: November 28, 2012
To win the jackpot, you need a ticket with six matching numbers from the drawing. That works out to a 1 in 292,201,338 chance of picking it up.
The exact amount you win depends on two payout options:
Despite the significantly lower payout, many winners chose the lump sum option because it can be invested immediately. This allows the winners to they grow their money through compound interest over a long period of time.
In any case, Powerball suggests that you consult with a financial professional before deciding which option is best for you.
Whichever option you choose, you will be liable to pay tax on your lottery winnings.
All winners must pay an automatic federal withholding tax of 24%. But because you’d win millions of dollars, you’d almost certainly have to pay the top federal income tax rate of 37%, which would be owed on your winnings when you file your 2022 tax return.
And most states tax lottery winnings as income. Of those that do, the state tax rate is usually between 3% and 8%.
In New York state — which has the highest state tax at 8.82% — you’d take home either $187,559,240 in a lump sum or $379,260,000 in an annuity, according to Powerball calculations.
If you live in a state that doesn’t tax winnings, you’d take home the biggest possible payout: either $218,092,140 in a lump sum, or $441,000,000 in an annuity, according to Powerball calculations.
Here are eight states that do not charge state taxes on lottery winnings:
- New Hampshire
- South Dakota
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