Illinois’ $1.8 Billion Powerball Jackpot: How Much Do You Keep?

Okay, so you've been watching the Powerball jackpot numbers climb and climb after weeks with no big winners. With a jackpot expected to rise to $1.8 billion by the time the numbers are drawn Saturday night, you might as well grab yourself a ticket and do a little fantasizing.

No one fantasizes about not winning the Powerball jackpot, so let's say your fantasy about being the single winner of a more than $1 billion jackpot come true. How much money do you actually get once all the taxes and fees are taken out of the mix?

There's a lot of tax money that'll need to be paid, both on the federal and state levels, so you can definitely expect some serious sticker-shock.

Let's Break Down Some Numbers For You...

If you’re lucky enough to hold the winning ticket in Illinois, the real jackpot isn’t the giant number splashed across headlines—it’s what you actually get to keep after taxes. Like all Powerball winners, you’ll choose between the annuity (30 annual payments totaling the full $1.8 billion) or the lump-sum cash value of about $826 million.

But before you start daydreaming about mansions and yachts, remember Uncle Sam and the State of Illinois both take their cuts. Here’s how the numbers shake out:

• First, your payoff options are the lump sum, which is about $826.4 million upfront, or the annuity option which is paid out over 30 years and grows 5% yearly.
• Next, in federal taxes, 24% is withheld immediately, but final liability is likely 37% because you've rocketed into the highest tax bracket.
• Then comes Illinois' state tax on your win, which is 4.95%, withheld automatically.

Your initial federal tax on the $826.4 million would be $198.3 million. Illinois state taxes would take out another $40.9 million. That would put your net total take-home amount after initial withholding at $587.2 million.

But wait, there's more! After you pay the extra federal owed at tax time to reach 37%, your final net take-home number is $479.7 million. At the end of the day, an Illinois Powerball jackpot winner can expect to pocket just under half of the advertised prize, but even after taxes, it’s still a life-changing windfall.