Powerball Jackpot Nears $500 Million—Here’s What The Winner Could Take Home

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The Powerball jackpot soared to $498 million—the third biggest lottery prize of the year so far—after no tickets matched all six numbers drawn on Monday night, although the eventual winner will take home a much smaller payout after taxes and deductions.

The six numbers drawn on Monday night were 5, 25, 36, 40, 48, and Red Powerball 3.

If a winner emerges in the next draw, they will have a choice between taking the $498 million prize, spread over 30 annual installments, or a lump-sum cash payout of $221 million—the preferred option for most winners.

If the winner chooses the cash payout, their winnings will first drop to around $168 million after a mandatory 24% federal withholding is applied.

The winner would likely face a federal marginal rate as high as 37%, depending on their taxable income, further reducing the winnings to around $139.2 million.

If the staggered payments are chosen, the winner’s annual installments of around $16.6 million would fall to $10.45 million after the 37% federal marginal rate is applied.

Depending on where they live, the winner could face additional taxes, as some states, such as New York, tax lottery winnings at 10.9%, while others, such as Texas, Florida, and California, don’t.