This is the fourth time a lottery jackpot amount has crossed $1 billion in 2023.
Topline
The Powerball jackpot rose to $1.2 billion—the third largest in the game’s history—after no single ticket matched all six numbers drawn on Monday night, although the total amount the eventual winner will take home will be far smaller after their tax bill.Key Facts
If a potential winner emerges in the next draw, they will have a choice between a $1.2 billion payout spread over 30 annual installments or a lump sum amount of $551.7 million—often the more popular choice.
If the lump sum amount is chosen, the payout will drop to $419.29 million after a mandatory 24% federal tax withholding.
Depending on their taxable income for the year, the winner could face a federal marginal rate of up to 37%, further dropping their winnings to $347.
