Discover the Real Amount You Take Home from the $820M Powerball Jackpot After Taxes

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The Powerball jackpot is once again on the rise, as no ticket managed to snag the winning numbers on Wednesday night. This development offers hopeful players another chance to vie for a prize that is inching closer to record-breaking territory. However, it’s worth noting that the fortunate winner will not pocket the full advertised jackpot amount.

The numbers drawn in the latest Powerball game were 1, 14, 20, 46, 51, and the red Powerball 26. The closest anyone came to hitting the jackpot was a player in Kentucky, who scored a $2 million prize by matching five numbers and opting for the Power Play feature.

As anticipation builds for the next drawing, scheduled for Saturday, lottery officials have announced the new estimated jackpot at a staggering $820 million, with a cash value option of $383.5 million. This prize ranks as the seventh-largest in Powerball history and the 17th-largest when considering both Powerball and Mega Millions jackpots.

It’s important to remember, though, that taxes will significantly reduce the take-home amount for any lucky winner who claims the Powerball jackpot. As is customary with such windfalls, a considerable portion will be claimed by federal and, in some cases, state tax authorities.

Right off the top, 24% is owed to the IRS, plus up to 37% in a federal marginal tax rate, according to USA Mega. That leaves you with about $517.9 million in total annuitized payments, or about $241.6 million if you prefer the cash option.

In the states that do not have a lottery tax, that would be your best-case payout option. Outside of those states, the payouts would fall under $500 million after the life of the annuitized payments and under $235 million for the cash prize, according to USA Mega’s analysis.

The interactive map below shows roughly how much of the Powerball jackpot you’d keep post-taxes, should you win:

You have a 1 in 292.2 million chance of winning the Powerball jackpot. Your odds do, of course, improve based on the number of tickets you purchase.

If you want to ensure your victory, you would need to buy 292,201,338 tickets, all with different number combinations. As easy as it sounds, that plan would cost you $584,402,676.

Hundreds of Powerball jackpots have been won by players who have not gone that route, thankfully.

Should you overcome the overwhelming odds, experts recommend keeping your victory a secret for as long as possible — something that may be impossible, depending on where you live. It’s also encouraged that you build a team of experts around you, including a financial advisor, a tax advisor, and a lawyer.

They could also help you decide which prize payout option is best for you.

Powerball drawings are held every Monday, Wednesday, and Saturday at 10:59 p.m. ET. The lottery game is played in 45 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.