A single ticket sold in California won the $1.76 Billion Powerball jackpot on Wednesday night—the second-largest lottery prize in U.S. history— although the winner will take home a significantly smaller amount after paying their taxes.
Powerball announced that the winning ticket sold in California was the only one to match the six numbers drawn on Wednesday night—22, 24, 40, 52, 64 and red Powerball 10.
The winner now has to pick between a $1.765 billion payout spread over 30 annual installments or a lump sum cash prize of $774.1 million—often the more popular option.
If the cash prize is chosen, the amount will drop to $588.3 million after a mandatory federal tax withholding of 24%.
Depending on the winner’s taxable income, they may face a federal marginal rate of up to 37%, further slashing the amount to $487.7 million.
Under the installment route, the winner’s annual payments of around $58.83 million could drop to $37 million, if the 37% federal marginal rate is applied.
California is one of 14 states in the country that does not tax lottery winnings, although the winner may still be required to pay state and local income taxes.
4. That is the total number of billion-dollar jackpots won so far this year, making 2023 a record year for lottery windfalls. In total, there have only been nine billion-dollar jackpots in U.S. history including Wednesday’s prize.
Wednesday’s winner had to overcome astronomical odds of 1-in-292.2 million to win the Powerball jackpot. This is still slightly better than the Mega Millions jackpot’s even more abysmal odds of 1-in-302.6 million.
Powerball Jackpot Climbs To $1.73 Billion—Here’s What The Winner Will Take Home After Taxes (Forbes)
Both Powerball And Mega Millions Jackpots Top $500 Million—Here’s Why There Are So Many Giant Jackpots (Forbes)