Powerball jackpot hits $1.8 billion. Here’s the tax bill if you win

But the windfall pushes you into the 37% tax bracket, and your bill will probably be larger, licensed monetary planner John Chichester Jr., founder and CEO of Chichester Financial Group in Phoenix previously told CNBC.

The subsequent Powerball jackpot winner simply lands in the 37% federal income tax bracket, no matter whether or not they select the lump sum or yearly funds.

For 2025, the 37% charge applies to people with taxable income above $626,350 and married {couples} submitting collectively incomes $751,600 or extra for 2025.

You calculate taxable revenue by subtracting the larger of the customary or itemized deductions out of your adjusted gross revenue.

But the 37% charge would not apply to your whole taxable revenue. For 2025, single filers pay $188,769.75 plus 37% of the quantity over $626,350. Meanwhile, joint filers pay $202,154.50 plus 37% of the quantity over $751,600.

The jackpot winner’s remaining tax bill after the 24% federal withholding is determined by a number of elements, however might simply symbolize tens of millions extra. President Donald Trump’s “big beautiful bill” raised the customary deduction, amongst different breaks, which might scale back taxable revenue for a lot of filers in 2025.

You may owe state taxes, relying on the place you dwell and the place you bought the ticket. Some states haven’t any revenue tax or do not tax lottery winnings, however others have top-income state tax brackets exceeding 10%. 

Powerball is not the solely likelihood to win massive. The jackpot for Friday evening’s Mega Millions drawing now stands at an estimated $336 million. The likelihood of hitting the jackpot in that recreation is roughly 1 in 290.4 million.