The jackpot trails two other winning tickets sold earlier this year, including prizes of $1.08 billion and $754 billion.
Topline
The Powerball jackpot reached an estimated $725 million for its next drawing on Sunday, the third-largest Powerball prize this year, though the winning ticket holder would receive significantly less after paying required taxes.Key Facts
The winner has the option of receiving the $725 million in 30 annual installments over 29 years, or as an up-front, lump sum payment of $345.7 million.
A mandatory 24% federal tax withholding would reduce the lump-sum jackpot to $262.7 million, while a federal marginal rate as high as 37%—depending on the winner’s taxable income—would reduce the winnings to as low as $217.7 million.
Lottery winnings can also be subject to taxes in some states, with a rate as low as 2.
