But the amount that winners take home will vary by hundreds of millions of dollars, based on the payout they choose and whether their state charges taxes on the winnings.
All winners pay an automatic 24% federal withholding tax on their winnings, which is considered income.
Then you have state income taxes, which range from 2.9% to 10.9% depending on which state you live in.
And eight states don't charge income tax on lottery winnings: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
Assuming a top federal tax rate of 37%, here's the after-tax amount you'd take home in each state and Washington, D.C., if you won the $1 billion jackpot, for both the lump sum and annuity option, according to usamega.com.
Persons:
Powerball's, It's
Organizations:
D.C
Locations:
California, Florida , New Hampshire, South Dakota , Tennessee , Texas, Washington and Wyoming, Alabama, Alaska, Hawaii , Nevada, Utah, Washington