One lucky Powerball player in Illinois won the massive $1 billion jackpot on Wednesday, Aug. 12, but they will actually see much less than that in winnings.
A single ticket sold at aHy-Vee gas station in Quincy, Illinois, hit the winning numbers in Wednesday's drawing, lottery officials said.
The winning prize pot is the eighth-largest in Powerball's history.
Before the Aug. 12 drawing, the last jackpot winner was on May 2, when two players in Texas and Florida split $20 million in winnings. Since then, the jackpot rolled over without a winner for months.
While the winner can choose either the estimated $1.040 billion annuity or a $450.5 million lump-sum cash option, they will have to pay a large cut in taxes.
Did anyone win the Powerball? See winning numbers
Yes, one lucky Powerball player purchased
the winning jackpot ticket in Quincy, Illinois.
According to lottery officials, another player in Massachusetts won a $2 million dollar prize by matching five numbers plus the Power Play. Four other players – in Arizona, California, Florida and North Carolina, respectively – hit five numbers for a $1 million dollar prize.
The winning numbers for the Wednesday, Aug. 12, Powerball drawing were: 4-26-66-67-69 and the Powerball was 9. The "Power Play" multiplier was 2x.
How much does the Powerball winner pay in taxes?
The Powerball winner has to pay both federal and state taxes on their winnings.
Federally, the IRS automatically takes 24% on lottery prizes over $5,000. Additional federal taxes are determined by the winner's income bracket, with the top tax rate at 37%, according to USA Mega and Tax Act.
On the state level, most states also tax for winnings. In Illinois, the state tax is 4.95%.
See how much $1B Powerball winner could get after taxes
The Powerball winner's total earnings after taxes will depend on whether they opt for the annuity or lump-sum cash option, as well as their tax filing status.
According to USA Mega, a single filer in Illinois who falls under the 37% tax bracket and opts for the lump-sum option would get a net payout of $261,559,293.
If they choose the annuity option, they would get a net average of $20,171,913 per year, totaling $605,157,390 after 30 payments.
Contributing: Fernando Cervantes Jr.
Melina Khan is a national trending reporter for USA TODAY. Keep up with her on X @melinakh and Instagram @bymelinakhan.
This article originally appeared on USA TODAY: Here's how much the Powerball winner will get after taxes
