The spike in massive jackpots in recent years can be attributed, in part, to a set of rules changes to the Powerball and Mega Millions’ formulas, making the odds of winning the grand prizes significantly longer, but providing contestants more opportunities to win smaller prizes. The second biggest in lottery history was claimed in October, when a winning ticket holder in California won a $1.76 billion jackpot ($487.7 million after taxes). A ticket holder in Altadena, California, claimed that jackpot, though they were estimated to have taken home roughly $628 million after federal taxes were deducted, if the winner opted for the lump sum over the 30 annual installments. That’s how far the Powerball jackpot climbed last November, the biggest jackpot in U.S.
With the installment route, the winner’s annual payments of $18.1 million would be cut down to as low as $11.4 million, if the full 37% federal marginal rate is taken out.
