Illinois Player Wins $1.04B Powerball Jackpot: Here’s How Much Is Left After Taxes

We finally have a winner! After 44 consecutive drawings without the jackpot hitting, a single ticket sold by the Illinois Lottery matched all five white numbers and the red Powerball during the lottery’s Wednesday (Aug. 12) drawing.

The winning numbers were 4, 26, 66, 67, 69, and red Powerball 9. The Power Play multiplier was 2.

The holder of the winning ticket has the option of collecting the annuitized prize of $1.04 billion paid out through 30 graduated payments over 29 years, with each annual distribution increasing by 5%. The winner can also opt for a one-time payment of $450.5 million.

For more than three decades, Powerball has shown that a winning ticket can be sold anywhere the game is played, giving every $2 ticket the chance to change not only a winner’s life, but generations to come. As participation continues to grow across markets, players are helping fuel larger jackpots and create even greater excitement for the game,” said Stephen Durrell, chair of the Powerball Product Group and executive director of the Kansas Lottery.

The Illinois Lottery said the winning ticket was sold at Hy-Vee Fast & Fresh, located at 310 N. 36th St. in Quincy. The retailer receives a $500,000 commission bonus.

Powerball jackpots are expected to grow faster now that the game is played in the United Kingdom. Ticket sales began overseas with the July 22 drawing.

$1B Isn’t What It Used To Be

Most major lottery winners take the one-time cash option, as financial analysts say sound investing can typically outpace the annual 5% gain that the annuity provides.

Should the winner in Illinois take the cash, the payout would be immediately reduced by 37% through federal taxes. The U.S. government considers lottery winnings as taxable income and is therefore subject to its highest tax bracket rate.

After the federal government takes its $166.6 million cut, the jackpot is reduced to approximately $283.85 million. Illinois also taxes lottery winnings as personal income, with the state’s 4.5% levy further reducing the windfall by $22.3 million.

After the federal and state taxes, the cash option for the $1.04 billion Powerball jackpot comes to $261.5 million.

The advertised jackpot of $1.04 billion ranks eighth all-time in Powerball history. There have only been seven other $1B+ Powerball jackpots, and only once has the game cleared $2 billion.

Top 10 Powerball Jackpots