Here’s how much money you actually take home if you win the $700 million Powerball
You won’t take home $700 million, that’s for sure. AP
The INSIDER Summary:
- The latest Mega Millions Powerball jackpot is $700 million.
- If you win and take the lump sum, the initial payout is $443.3 million.
- But then federal taxes cut that down to $332.5 million.
- And depending which state you’re in, the final payout might be around $293 million.
- Find out the payout depending on your state at the USA Mega website.
The Powerball lottery pot is now $700 million , a nd while buying a lottery ticket might not be money-well-spent, you might as well prepare by knowing how much cash could be in your pocket.
Unfortunately the $700 million sum drops drastically after federal and state taxes are removed.
The real total take-home? According to USA Mega, the winner receives an initial payout of $443.3 million (if they take the lump-sum). Already we’re at 63% of the advertised value.
But now comes taxes.
The initial federal tax withheld from the winnings is 25% — removing $ 110,825,000 million. Now our winner has about $332.5 million left to spend.
But, depending on where they live, an additional state tax of up to 8.82% will be deducted, leaving a grand total of $293,375,940 awarded.
USA Mega makes sure to note that this dollar amount is the estimated total awarded at the time a winner claims the prize, not your exact final tax burden,” because the federal tax actually winds up being 39.5% for lottery winners.
Then state taxes may vary from the percentages listed on their site. And some residents, like New York City dwellers, are subject to additional municipal taxes of about 3% on lottery winnings.
The next Powerball drawing takes place on Wednesday, August 23 at 10:59 p.m. EST. If no winning numbers are drawn, the pool will continue to grow as more people buy tickets.
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Lottery winners are given a payout of less than 50% of the advertisted jackpot after state and federal taxes when you take the lump sum of cash.