The Powerball jackpot keeps climbing, now towering at an eye-popping $1.6 billion after no one hit all six numbers Saturday night. It’s the second-largest jackpot of the year, trailing only the $1.7 billion prize split by two winners in September.
Saturday’s winning numbers—4, 5, 28, 52, 69, and Powerball 20—went unmatched, which means the jackpot is once again ballooning before Monday’s drawing.
For anyone daring enough to dream of hitting the jackpot, the reality of taxes hits hard. A winner would face a choice: take the full $1.6 billion in 30 annualized payments, or grab a lump sum of $735.3 million.
Most players lean toward the immediate cash, but that’s just the beginning of the cuts. A 24% federal withholding tax drops that $735.3 million down to $588.8 million right off the bat. Then, thanks to the federal marginal tax rate of 37%, the total could fall further to $463.2 million. Suddenly, that life-changing windfall doesn’t feel quite as huge.
Opting for the annuity isn’t a magic shield from taxes either. The 30 payments grow 5% each year, averaging $33.6 million annually, but federal taxes still chip away, leaving a net jackpot of roughly $1 billion over three decades.
State taxes can tighten the grip even more. Some states, like New York, take up to 10.9%, while others—including Texas, Florida, and California—don’t touch lottery winnings at all.
For the hopeful, the next chance to hit the jackpot is Monday night at 10:59 p.m. EST. Results can be watched live on Powerball’s website or streamed via the lottery’s YouTube channel.
