Powerball jackpot tops 500 million

Powerball reaches 501 million after Saturdays draw, with options for 30 payments or a lump sum of 229.5 million before taxes.

Powerball Jackpot Tops 500 Million After No Winner

The Powerball jackpot rose to 501 million after no ticket matched all numbers in Saturday’s drawing. Players can choose a 501 million annuity paid as 30 installments over 29 years or take a cash lump sum of 229.5 million. Federal withholding reduces the immediate cash value to about 174.4 million, and if the winner falls into the top 37 percent tax bracket, the annual payments could be further trimmed.

State taxes also apply. New York taxes lottery winnings at up to 10.9 percent, while some states, like Texas and California, do not tax lottery winnings at all. The next drawing is Monday night, Aug. 11 at 10:59 p.m. EDT. If no ticket matches, the prize grows again for the next drawing on Wednesday and Saturday.

The headline is big, but the math behind it is the real story. Tax rules shrink big sums into much smaller cash options, a reminder that lottery wins are a tax event as much as a windfall. The choice between annuity and lump sum changes not just the total take but the financial planning needed to manage it.

As the prize climbs, public excitement collides with practical realities and the state's role in collecting taxes varies widely.

Highlights

The numbers move fast, but smart planning stays the real prize.