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(NEXSTAR) — Another drawing has come and gone, yet no ticket was lucky enough to overcome the odds and win the Powerball jackpot Wednesday night. Now, the jackpot sits at an estimated $950 million, edging ever-closer to being among the five largest in Powerball history.
The jackpot grew immensely between Monday’s drawing and Wednesday’s. As of Tuesday morning, the jackpot sat at $815 million. By Wednesday morning, it was $850 million. With two days before Saturday’s drawing, there’s a chance the jackpot will get closer to — or even surpass — $1 billion.
Regardless of how large the Powerball jackpot is, there are some states that are better to win in than others. It’s primarily due to the payout, and your state’s lottery tax rate.
Let’s say you overcome the odds — 1 in 292.2 million for Powerball — and win the jackpot on Saturday. Because it’s difficult to estimate whether or not the jackpot will grow before the next drawing, and by how much, we’ll use the current estimated value of $950 million with a cash option of $428.9 million.
No matter where you live, your prize will be subject to 24% in federal tax withholding immediately. With additional taxes, you’ll see roughly 37% of your prize money withheld, according to USA Mega.
In a handful of states, there is no additional state lottery tax. It’s in those lucky states — California, Delaware, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — where no additional money will be withheld for taxes, as long as you’re a resident. You may, however, owe income taxes on your prize later on. (But the payout may still be enough to offset the costs of ensuring you win the Powerball jackpot.)
A winner in those nine states would take home the largest chunk of the current Powerball jackpot: $599.8 million across all 30 annuitized payments, or $270.2 million with the cash option, USA Mega estimates.
In all but two states, your annuitized payouts would total more than $500 million, USA Mega determined. In New Jersey and New York, which have the highest state-level lottery taxes, the payout would be about $497.7 million and $496.2 million, respectively.
These five states have the highest state tax withholdings on large lottery prizes (some have different tax rates for different-sized prizes, or the taxes aren’t withheld unless a prize is larger than a set value):
- New York: 10.8%
- Maryland: 8.95%
- New Jersey: 8%
- Oregon: 8%
- Wisconsin: 7.65%
The District of Columbia also imposes an 8.5% tax on lottery prizes won in its jurisdiction.
The interactive map shows how those payouts would vary by state.
There are other factors to consider if you win the Powerball jackpot, of course. Experts recommend building a team to help you navigate your newfound wealth, and keeping your victory a secret for as long as possible.
That’s easier in some states than others. In California, for example, your payout will be among the largest, but state disclosure laws require the California Lottery to share your full name and where you bought the ticket.
In only about half the states that participate in Powerball can a jackpot winner remain truly anonymous.
If you’re ready to test your odds, the next drawing is scheduled for 10:59 p.m. ET on Saturday. Powerball tickets are $2 each and are sold in 45 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
