RESOLVING THE LEDGER
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Topline The Powerball jackpot reached $1 billion ahead of Wednesday night’s drawing, marking the highest of the year, which will be significantly reduced after taxes come into play.
The jackpot for Wednesday night’s drawing was initially estimated at $975 million after no winning tickets were sold for Monday’s drawing, but Powerball reported the number at $1 billion Wednesday as ticket sales drive the jackpot higher.
If Wednesday’s drawing has a winner, they will be able to choose between $1 billion split into 30 annual installments or a one-time lump sum of $433.1 million—the much more popular option.
That cash prize will be reduced to $329.1 million after a 24% federal withholding is applied.
The winner will likely face a federal marginal rate up to 37%, which would further cut winnings down to $272.8 million.
A winner who chooses installments would reduce their annual payout of $33.3 million to $21 million after federal taxes are accounted for.
States vary in taxes for lottery winnings, with New York taxing winnings at 10.9%—the highest rate in the nation— while states like California, Florida and Texas do not tax winnings.
Despite the Powerball’s massive jackpot, it is only the eighth largest in the lottery’s history. The largest Powerball ever won was $2 billion, which was collected by a California man in 2022.
Wednesday night’s drawing is scheduled for 10:59 p.m. EDT.
Wednesday’s Powerball jackpot is the largest lottery prize of 2026, topping an $800 million Mega Millions jackpot recently won in Florida. The largest Powerball jackpot won so far this year was worth $250.8 million. The odds of winning the Powerball’s grand prize are 1 in 292.2 million, though chances of winning any prize are roughly 1 in 25.
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