Hollywood Sells $1.4 Million Powerball Ticket as Jackpot Climbs to $975 Million

Q: How much of the advertised $975 million jackpot actually reaches the winner's bank account after taxes?

A sole Powerball winner would likely net about **$266 million after federal taxes** if they choose the **cash option**, before any state taxes. The advertised **$975 million** jackpot is the annuity value paid over 30 years, not the amount a winner gets upfront. The lottery lists the current **cash value at about $422.3 million**. Under federal rules, the lottery must withhold **24% immediately**, cutting that to about **$320.9 million** at payout. But that is not the final tax bill. A jackpot of this size would push most winners into the top federal income tax bracket, **37%**, meaning the total federal tax on the lump sum would be roughly **$156 million**. That leaves an estimated **$266 million** after federal taxes. The final amount depends on where the winner lives. Some states, including **California, Texas and Florida**, do not tax lottery winnings, so a winner there could keep roughly that **$266 million** figure. In high-tax states such as **New York**, the take-home amount could fall by tens of millions more. If the winner chose the annuity instead, they would receive the full **$975 million** over 30 years, but each annual payment would be taxed as income. Using the top federal rate, that would reduce the total to roughly **$614 million after federal taxes**, again before any state taxes.

3 articles · Updated · NBC Los Angeles · Aug 11

$1.4 million Powerball ticket sold at a 7-Eleven on Santa Monica Boulevard in Hollywood matched five numbers in Monday’s drawing.
No ticket matched all five numbers plus the Powerball, pushing the top prize to $975 million ahead of the next drawing Wednesday.
The winning numbers Monday were 6, 37, 54, 55, 64, with Powerball 10.