ELMIRA, N.Y. (WETM) – The total jackpot for this evening’s Powerball is listed at more than $1 billion, but that isn’t really the amount of money that you get. It will be less, but it’s still going to be a lot of money.
The winnings are still significant, but the amount of taxes taken out will be almost as much as you take home. With a 37% federal tax rate added to a 10.9% state tax rate in New York (which is the highest state lottery tax rate) or a 3.07% rate in Pennsylvania, the amount that is taken away from the jackpot is almost as much as you actually receive as the cash payout, with both states being in the mid to high $200 million range.
The max pay will come with accepting the annuity, where you get paid over the span of 30 years. Each year you get paid the price you get back will increase by 5%. If you decide to go with the cash option you will only receive about half of that.
With a 1 in over 200 million chance to win, the odds are very low. If you do win, it’s not a bad idea to think about what you would do with the money. You are able to buy a Powerball ticket from a local store until 9:59 tonight. The drawing will be at 10:59 p.m.
For more information about the Powerball, and how much you will actually make, you can check out their website.