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It’s a dream shared by many: getting lucky enough to receive a windfall of cash.
Flavio Coelho | Getty Images
The Powerball Jackpot has surpassed $1 billion for only the second time in its history, reaching $1.2 billion, CNBC reported, though the take-home winnings vary significantly by state.
Related: North Carolina Man Wins Lottery Twice After Accidentally Buying 2 Identical Tickets
Winning a jackpot requires picking five numbers between 1 and 69 and a sixth number between 1 and 26 (these can also be generated automatically). The person or people who select all of the numbers correctly will walk away with the money — odds of roughly one in 303 million, per NerdWallet.
For those who do win big, the amount they actually take home will be determined by if they choose to accept the prize as a 30-year annuity or a lump sum that’s worth roughly 51% less, per CNBC. But the total winnings will also largely depend on the winner’s state taxes.
There are only eight states that don’t tax lottery winnings: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Other states charge anywhere from 2.9% to 8.82% taxes on the prize.
At the federal level, this massive jackpot will incur a 24% upfront tax in addition to a 37% tax on income.
Related: Woman Says She Accidentally Destroyed $26 Million Winning Lottery Ticket in Washing Machine
So what’s the grand total? According to Powerball, choosing the annuity in a state that doesn’t charge income tax on lottery winnings will get you $630,000,000, while selecting the lump sum payment will net you $307, 503,000.
The drawing will be held tomorrow on November 2.
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