Texas winner likely to net more after $1.78 billion Powerball split with Missouri
Two tickets matched Saturday’s numbers; Texas’s lack of state income tax is expected to leave its ticket-holder about $16.4 million ahead if winners take the lump sum.
A pair of winning Powerball tickets sold in Texas and Missouri will split a near-record $1.78 billion jackpot from Saturday’s drawing, but the ticket sold in Texas is set to walk away with a larger net payout because Texas does not impose a state income tax.
The advertised annuitized jackpot totaled about $893.5 million for each ticket before taxes; winners may instead choose a lump-sum payment of roughly $410.3 million. If a winner takes the lump sum and pays federal income tax at the top rate, the amount left after a 37% federal tax would be about $258.5 million. Missouri imposes a roughly 4% state tax on lottery winnings, which would reduce that state winner’s net by about $16.4 million compared with a Texas winner who faces no state income tax.
Saturday’s drawing ended a run of 42 consecutive Powerball drawings without a jackpot winner, the longest such streak since May. The numbers drawn were 11, 23, 44, 61, 62 and Powerball 17. Powerball officials said the drawing produced 101 prizes of $1 million or more and more than 1,000 prizes of at least $50,000 during the run.
The two jackpot winners will be offered a choice between the annuity—30 annual installments over 29 years that equal the advertised $893.5 million share—or the roughly $410.3 million lump sum. Federal law requires an automatic 24% withholding at the time of a large jackpot payout, but the ultimate federal liability for most winners will be calculated at their full marginal rate, which can reach 37%.
The Texas winning ticket was sold at Big’s 103, a gas station and convenience store in Fredericksburg, about 70 miles northwest of San Antonio. Manager Melanie Carter told reporters that the store, which opened in 2021, “would never have expected” to sell a winning ticket and that she hopes the purchaser is a local resident in need. The Texas Lottery said the retailer could be eligible for a bonus of up to $250,000 for selling one of the winning tickets.
The Missouri Lottery said it will disclose the location of its winning ticket within 72 hours of the drawing. Missouri’s 2021 law allows jackpot winners to remain anonymous, and its statute makes it a misdemeanor to reveal a winner’s identifying information. Texas has allowed winners of $1 million or more to remain anonymous since a 2017 law took effect, so both winning ticket-holders may choose to keep their identities private.
Powerball’s $1.78 billion drawing is the second-largest prize in the game’s 33-year history. The only larger jackpot was a $2.04 billion prize paid to a single California ticket-holder in November 2022.
Lottery officials cautioned that the ultimate net amounts each winner receives will depend on the choice between lump sum and annuity, federal tax filing status and any additional state or local taxes that may apply. If both winners elect annuities, the tax treatment and timing of payments would differ from the lump-sum scenario and could affect final after-tax totals.
Local reaction in the Fredericksburg area included a mix of surprise and hope for nearby communities. A customer, Carson McCoy of Kerrville, said the flood-hit area “needs all the help we can get over there,” echoing community hopes that the prize could benefit local residents.
The Missouri Lottery will provide further details about the winning ticket it sold, including retailer information, by 10:59 p.m. ET on Tuesday. In the meantime, both states’ privacy provisions mean the identities of the jackpot holders may remain undisclosed if they choose anonymity.