Topline<\/p>\n
The Powerball jackpot rose to $875 million after no winners were drawn on Saturday night\u2014but a player purchasing a winning ticket before the next drawing will take home substantially less after taxes.<\/p>\n
The next Powerball drawing will take place on Monday night.<\/p>\n
AFP via Getty ImagesKey Facts<\/p>\n
No tickets were sold matching all six numbers drawn on Saturday (13, 14, 26, 28, 44 and Powerball number 7), meaning the jackpot is growing again before the next drawing scheduled for Monday night.<\/p>\n
If a winner does purchase a ticket with six matching numbers for Monday\u2019s drawing, they will get to choose between receiving $875 million in 30 annualized payments or taking a lump sum of $403.6 million immediately.<\/p>\n
If the winner picks the lump sum, the more popular option, they will immediately face a 24% federal withholding tax, bringing the jackpot down to $306.7 million.<\/p>\n
They will then likely face the highest marginal tax rate of 37%, bringing their total winnings down to $254.3 million.<\/p>\n
If the winner selects the annuity, they will then receive their jackpot over 30 graduated payments averaging $18.4 million for a net jackpot of about $552.3 million after taxes are applied.<\/p>\n
Winners could also face state taxes on their jackpots\u2014some states including California, Texas and Florida have no taxes on lottery winnings, while a New York-based winner would face the top state tax rate of 10.9%.<\/p>\n
What To Watch For<\/p>\n