Personal Finance

Here's the estimated tax bill on that massive Powerball win

Key Points
  • The lump-sum cash payout option on Saturday night's jackpot will be at least $273.1 million.
  • Before claiming the prize, winners should consult a financial advisor, accountant and attorney.
  • Federal tax withholding on the lump sum would be nearly $68.28 million.
Winning the lotto doesn't have as much value as you think
Winning the lotto doesn't have as much value as you think

The Powerball jackpot, which was won by a lucky soul in California on Saturday, soared to nearly $448 million, after last week's drawing failed to yield a winner for the top prize.

That massive haul ranks among the largest jackpot in U.S. history, and eclipsed a $435.3 million Powerball win in February that went to an anonymous winner in Indiana.

While $448 million seems like a lot of money, alas, the winner of this weekend's drawing won't walk away with the full amount.

Lottery site estimates the federal tax withholding on a lump sum would be somewhere north of $68 million, and state taxes could knock out up to another $24.1 million (with New York the worst offender). Those figures are just the amounts withheld up front; your final tax burden is likely to be even higher.