Winning a $125 million Powerball jackpot sounds life-changing, but after taxes, the actual amount you take home is significantly lower.
The lump sum is about 50-60% of the advertised jackpot, meaning you’d receive roughly $62.5–$75 million before taxes.
The annuity pays the full $125 million over 30 years, with payments increasing annually by 5%.
Lump sum: If you take $75 million, the IRS takes $18 million upfront, leaving $57 million.
Additional 13% (up to 37% total): If your total income exceeds $609,350 (single) or $731,200 (married) in 2025, you owe more at tax time.
Steady Income Stream – Paid over 30 years in increasing annual installments (5% per year), ensuring financial stability.
Annuity payments are taxed yearly but allow for better financial planning.
Consult a tax professional to optimize your winnings!
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