Powerball prize increases to $400 million – NBC Miami (51)

Lottery Jackpot Powerball Topping $400 million before Wednesday night’s drawing, Monday’s winning numbers were 36, 39, 52, 57, 69 and Power Ball 1.

If you’re lucky enough to win, the amount you actually take home is much less.

It depends on two factors: the payment type you choose and the state you live in.

For payment, you have two options: immediate lump sum or annuity spread over 30 years.

With the annual option, you get the full jackpot amount.

You will receive 52% of the jackpot amount, along with the total amount calculated by the lottery site usamega.com.

Many winners choose the lump sum option because the money can be reinvested immediately, although it is usually less money.

Beyond that, taxes must be paid. While state taxes vary, all winners pay a 24% federal tax in advance of winnings.

However, since the top tax bracket is 37% for single taxpayers earning more than $578,125 in 2023, you’ll still pay 13%.

8 states that take home the most money after taxes:

There are only eight states that don’t charge state taxes on lottery winnings, meaning they pay higher payouts:

California

Florida

New Hampshire

South Dakota

Tennessee

Texas

Washington

Wyoming

Residents of these states go home after taxes.

For the annual option, it is $231,691,350 and $119,107,045 for the total amount. In other states and counties, winners are subject to additional state taxes ranging from 2.9% to 10.9%.

According to usamega.com, below are the five states with the highest tax rates on lottery winnings:

New York: 10.9%

New Jersey: 10.75%

Washington, D.C.: 10.75%

Oregon: 9.9%

Minnesota: 9.85%

Lottery winner pays higher taxes in New York For a $366 million jackpot, that would be $191,797,350 for the year and a total of $98,506,045.

That’s less than the tens of millions of dollars that winners in tax-free lottery states receive.

Depending on where you live in New York State, you may owe even more. If you live in New York City, you’ll pay an additional 3.876% withholding tax. If you live in Yonkers, you’ll pay an additional 1.477% withholding tax.

The last drawing was Saturday at 10:59 PM ET. To win the jackpot, you must match all six numbers in the drawing. You’ll also need a lot of luck: the odds of winning the jackpot are 1 in 292,201,338.

This is Article Originally published in English by Mike Winters for our sister network CNBC.com. Enter to learn more from CNBC Here.