Are you feeling lucky? If so, you might want to head down to your local gas station or liquor store and scoop up some Powerball tickets for your (astronomically) small chance at taking home the estimated $650 million jackpot, which is the third largest in American history.
Lottery officials credited an intense spike in sales after nobody matched the numbers in Saturday’s drawing for driving up the jackpot by $115 million, inching it ever closer to the $1.6 billion jackpot that was divided among three winners in January 2016.
For a single winner, the lump sum cash value before taxes would be an eye-watering $411.7 million – but for residents of many states, the tax bill could put a significant dent in their newfound wealth.
“If you’re unlucky enough to win in New York, this is the most expensive state in the U.S., to win the lottery,” tax practitioner David Selig told the New York Daily News. “Between the federal and state taxes, you lose more than 50 cents on the dollar. And then there are city taxes, too.”
So if you’re a particularly fortunate person living in New York City who manages to win the jackpot by yourself, your winnings will be subjected to a 39.6 percent federal tax, 8.8 percent in state tax, and 3.9 percent in city tax, shaving the $411.7 million haul down to a modest $200 million – which means that you’d just about be able to afford a studio apartment in Manhattan.
Don’t start spending your millions just yet, though. The odds of winning the $650 million jackpot are one in 292.2 million – which means that you’re more likely to be struck by lightning (1 in 174,426), get killed by fireworks (1 in 340,733), get injured by a toilet (1 in 10,000), or become the president of the United States (1 in 10 million).