Member Log In

Here's the tax bill on that record $758.7 million Powerball

  • CNBC
  • by:
Here's the tax bill on that record $758.7 million Powerball
A lucky winner in Massachusetts is taking home the $758.7 million Powerball jackpot.

The winning numbers for Wednesday's drawing were 6, 7, 16, 23 and 26, with a Powerball 4. The jackpot has now reset to $40 million.

The $758.7 million prize was the second largest in the game's history and the second largest in U.S. lottery history. It's also the largest payout ever awarded to a single ticket. (The biggest jackpot, a nearly $1.6 billion Powerball in January 2016, was split among three winners from California, Florida and Tennessee. Each winner received $327.8 million before taxes.)

Of course, the Massachusetts winner won't walk away with the full amount. If he or she opts to take the $480.5 million lump sum, lottery site estimates the federal tax withholding would be roughly $120.1 million, with Massachusetts state taxes taking $24 million more. Those figures are just the amounts withheld up front; the final tax burden is likely to be even higher.

Help FAIRtax Get 'ON the AIR' in 2017

Help fund our 2017 media blitz. NOW is the time!
Your gift of $25, $50, $100 – even $1,000 or more if you can possibly spare it – will help bring an end to the IRS and promote a FAIRtax. So, I urge you, please give as generously as you can.
To donate by check:
Americans for Fair Taxation
PO Box 4929
Clearwater, FL 33758

Americans for Fair Taxation® is a 501(c)(4) non-profit, non-partisan grassroots organization solely dedicated to replacing the current income tax system with a fair, simple and transparent national consumption tax – the FAIRtax® Plan. We rely entirely on contributions from concerned citizens like you who want a tax system that will generate jobs and stimulate the economy. Welcome to the FAIRtax team!