News
The Powerball jackpot is at one billion dollars!
Literally everyone has dreamed about winning the lottery, and now someone could become the newest billionaire on the block. Or is it? See below to learn which states allow the winner to take home the biggest amount.
Advertisement
Learn which states in the U.S. offer the biggest amount after taxes.
Some lucky person can become the newest billionaire on the block this week. The Powerball lottery just hit its second-highest prize ever at $1 billion. However, how much of that amount you’ll take home if you win depends on which state you reside. Plus, if it charges taxes on lottery winnings.
The next Powerball draw takes place Monday night. According to the Multi-State Lottery Association – which runs the Powerball – in case there’s a winner, it’ll be the fifth-largest payment in American lottery history. To win, the person must match all numbers from the draw, which are six total.
Powerball winners can choose whether to take the full amount, but as an annuity for a 30 year period. Or, take a lump sum that’s worth about 50% less than the total prize.
Although it might seem illogical to accept less than half of the original amount, many winners choose that route. That is because, after consulting with a financial advisor, they realize they can reinvest the money right away.
Regardless, the actual amount you’d be able to take home depends on the taxes incurred in the state you live in.
Which states would charge less taxes on a Powerball win
All lottery winners must pay federal taxes, and currently, there are only a handful of U.S. states that don’t charge state taxes on lottery prizes. They are: Wyoming, Washington, Texas, Tennessee, South Dakota, New Hampshire, Florida and California.
Other states charge taxes between 2.9% and 8.8% in Powerball or other lottery winnings. So if you live in any of the states depicted above, you’d take home the largest amount.
Federal taxes eat away the most value. Right out of the bat, there’s a 24% withholding tax on lottery winnings. Plus, with such a large amount, you’d likely owe something close to 37% in federal taxes on your tax return for 2022. That is the top rate for people who have the highest income.
According to Powerball, you’d take home about $630 million if you choose the annuity alternative – which pays the most over time. That is, of course, in those states that don’t charge income tax on lottery prizes. If you choose the lump sum, the value decreases significantly, and you’d get $307,5 million.
You will be redirected to another website
You’ll receive messages for less than 1 week, with a maximum of 1 message per day. You can unsubscribe anytime by replying STOP. By submitting this form, I confirm that I am 18+ years old and agree to the Privacy Policy and Terms and Conditions. I also provide my signature, giving express consent to receive informational messages via automated emails, SMS, MMS text messages, and other forms of communication. Message frequency may vary as part of our good-faith effort to respond to your inquiry. Message and data rates may apply. Text STOP to cancel. I understand that my consent to receive communications is not a condition of purchase and that I may revoke my consent at any time.
What is the most expensive thing in the world right now?
If you need inspiration of what to buy if you win the Powerball, we’ve got you covered. Check the link below to learn what is the most expensive thing in the world. With so much money, you surely will be able to splurge a little.
The number one most expensive thing in the world
What is the one most expensive thing you could buy? Check out this post to learn the number one most expensive thing in the world and see if it's worth it.
Trending Topics
Chase Freedom Flex℠ Credit Card Review
Learn about the Chase Freedom Flex℠ Credit Card features that give you up to 5% cash back and an extra level of flexibility.
Keep Reading5 of the best streaming services to subscribe to in 2023!
With so many streaming services on the market, it can be difficult to pick one. Check this list of the best streaming services for 2023!
Keep ReadingDiscover It® Secured Credit Card review: A card that rewards your spending!
Learn in this Discover It® Secured review why this credit card might be what you need to build your credit while earning rewards.
Keep ReadingYou may also like
Is The News Stacker safe?
Welcome to The News Stacker! This post will show you all the reasons why this website is safe and why you can trust the content you find here.
Keep ReadingWho are the top 12 richest NFL players
The richest NFL players are very very rich. Do you know how much money a football player can earn during his career? This post will tell you.
Keep ReadingSee how to apply for The Platinum Card® from American Express
Learn the ins and outs of The Platinum Card® from American Express application process and how you can easily request it online.
Keep Reading