Top Line

A single ticket sold in Washington State was declared the winner. $754 million The Powerball jackpot on Monday is the ninth largest lottery jackpot in US history, although the actual amount they take home will be far less after paying the hefty tax bill.

important facts

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The winning ticket holder will have the option of either receiving the total jackpot amount of $754.6 million spread over thirty annual payments over the next 29 years – or choose the more popular option of a smaller lump sum payment of $407.2 million.

If the winner chooses the lump sum, they will first face a mandatory federal tax withholding of 24%, leaving them with $309.4 million.

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The winner also faces a federal marginal income tax rate of up to 37% — meaning they’ll need to set aside $52.9 million unless they claim tax deductions through things like charitable contributions. Would require – reducing the award from state taxes by approximately $256.5 million.

The state of Washington does not tax lottery winnings and does not impose a state income tax either.

amazing facts

The winner managed to beat extremely poor odds of one in 292.2 million to hit the jackpot on Monday. Such incredibly slim odds are a deliberate result of significant changes to the game's formula and have allowed jackpot prizes to rise to record levels in recent years.

big number

$2.04 billion. This was the size of the biggest lottery prize in US history claimed by a Powerball ticket holder in the state of California last November.

Powerball Hits $700 Million – Here's Why It's Been Such A Massive Jackpot Lately (Forbes)

Powerball: A winner in California claimed a record $2.04 billion prize—here's how much they'll take home after taxes (Forbes)