Topline<\/p>\n
The Powerball jackpot rose to $740 million after no tickets matched all six numbers drawn in Saturday night\u2019s drawing, but a potential winner would take home substantially less after taxes.<\/p>\n
Winners can choose between $740 million over 30 years, or a lump sum of $346.1 million before taxes.<\/p>\n
Anadolu Agency via Getty ImagesKey Facts<\/p>\n
No winning tickets matched all six winning numbers (19, 22, 30, 32, 59 and Powerball number 1) drawn Saturday, meaning the jackpot is growing once again before the next drawing.<\/p>\n
If a winner is selected in the next drawing on Monday, they will have the choice between receiving the full jackpot paid out over 30 annual installments, or accepting a lump sum of $346.1 million.<\/p>\n
If the winner selects the lump sum, the much more popular option, they will immediately face the 24% federal withholding tax, bringing their winnings down to $263 million.<\/p>\n
They will then likely face a federal marginal tax rate of 37% based on their income, bringing the sum down to $218 million.<\/p>\n
If the winner elects to take the installments, they will receive 30 annual payments of $15.5 million on average after accounting for federal taxes.<\/p>\n
The winner could also face state taxes on lottery winnings, which can get as high as 10.9% in New York, though many states, including California, Texas and Florida, do not tax lottery winnings at all.<\/p>\n
What To Watch For<\/p>\n