The following are mostly lottery prizes that are in the form of multiple accruals, making the Jackpot value become huge after a few draws without a winner. Besides, the article will give you some information about lottery tax
The largest lottery jackpot in the world
They are mostly self-selected lottery prizes with accrual prizes, making the Jackpot value become huge after a few draws without a winner.
Due to the low winning rate and the accrual mechanism, the major lottery prizes in the world often have very high jackpots worth hundreds of millions of dollars. In the US, players pay very high taxes when receiving lottery bonuses, and in Europe, players are exempt from taxes or pay very low taxes.
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This is a famous American lottery. It appears on the list of the largest lotteries jackpot on the planet. On average, a Jackpot of Powerball is accumulated to 300 million USD and many times the special prize of this lottery prize has reached 500-600 million USD. On January 13, 2016, Powerball’s Jackpot reached a world record with a total prize of $ 1.5 billion.
On average, a Jackpot of Powerball is accumulated to 300 million USD. Source: lotteriesinusa.com
Sorteo Extraordinario de Navidad (Spain)
The Christmas special lottery is the most expected prize in Spain. This prize has always been a very large annual prize, and this year, this number has risen to 2.7 billion USD for the 1,650 highest winning tickets. All of these tickets were chosen by people of a poor neighborhood and they shared the total prize, each recipient more than 400,000 USD
Mega Millions (USA)
This is the second-largest lottery in America. It has a long history and has always been compared to Powerball in terms of jackpots, but Mega Millions’ chances of winning are slightly higher. Like Powerball, Jackpot of Mega Millions usually falls around 300 million USD. The highest jackpot ever awarded by Mega Millions is 656 million USD.
Mega Millions is the second-largest lottery in America. Source: lottosend.com
This is a lottery prize released in many European countries. The jackpot of EuroMillions currently has a maximum of 100 million USD. When it reaches the maximum level, if there is no special winner, the prize will be divided equally among the first winning players instead of continuing to accumulate. The largest prize ever awarded by EuroMillions is £ 161 million ($ 260 million).
This is the official lottery formula 6/90 of Italy. There is no denying that it is one of the most difficult lottery prizes in the world, so the jackpots are often accumulated at a high level. On average, a Jackpot of SuperEnalotto is worth nearly 100 million USD. On November 30, 2010, a group of 70 general players won the $ 248 million SuperEnalotto jackpot, the record for the above lottery.
How are the world’s lottery winners taxed?
The biggest jackpot ever is the $ 1.6 billion prize of the Powerball lottery. It was divided among the four winners in the US in January 2016. However, with a range of taxes, the 4 winners will only be able to split more than 300 million USD.
According to CNBC’s analysis, even before the tax was imposed, the value of the prizes had been reduced somewhat. The winner of the jackpot will only receive the entire $ 1.6 billion if they choose to receive money in 30 installments over 29 years. If they decide to accept them all in one go, the prize value will be cut by 38%, leaving only $ 930 million. This person will then be subject to federal taxes and will have to pay the highest tax bracket of 39.6%.
According to Melissa Labant – Director of the Association of Certified Public Accountants, lottery prize is taxed higher than as the winners think a lot. “There are not many ways to avoid taxes when you win the lottery. The winner is not the object of the US government’s desire for tax exemptions,” Ms. Labant said.
For those who are citizens or settlers have Social Security, the government will automatically collect an additional 25% when receiving prizes in one time. This fee is equivalent to 232.2 million USD. If the winner does not have Social Security, this fee increases to 28 to 30%. That is not to mention the 14.6% personal income tax that that person has to pay to the tax office in the April 2017 tax season. This tax is equivalent to 135.8 million USD. Thus, it is estimated that after subtracting all taxes and fees, the winner will have a remaining amount of about 561.7 million USD. In fact, this prize is only $ 327.8 million before federal taxes – much lower than initially anticipated.
In Europe, most countries do not collect lucky lottery taxes. The fact of the matter is that only three countries Switzerland, Spain, and Portugal collect income tax from the lottery. Meanwhile, many have become millionaires by winning the lottery and not paying taxes in France, England, Ireland, Austria, and Germany.
Millions lottery in Europe only allows the accumulation of jackpots up to a maximum of 190 million euros. The jackpot has been won twice in 2012 in the UK and 2014 in Portugal. However, an anonymous winner in Portugal was taxed 20% so the British couple Adrian and Gillian Bayford still hold the record as the most valuable lottery winners in Europe.
However, the UK has a very high inheritance tax. Once the winner receives the prize, the amount is automatically deemed to be his property and will be subject to a 40% inheritance tax on assets above £ 325,000. If that person gives back the money to someone else, they will be subject to a mobile inheritance tax. The tax rate will be 20% if the winner dies three to four years after giving the prize to another person and 0% if this person dies within 4 to 5 years.
All in all, here are some pieces of information about the lottery in the world