(NEXSTAR) — As it is designed to do, the Powerball jackpot again evaded players on Wednesday, with no ticket matching the winning numbers.
That means we now have one of the largest lottery jackpots, Powerball or Mega Millions, on our hands. As of Thursday morning, the jackpot is an estimated $1.7 billion with a cash value of $770.3 million. There’s a decent chance it will grow again before Saturday night’s drawing, but for now, the Powerball jackpot ranks as the third-largest ever in the U.S.
Top 10 largest Powerball, Mega Millions jackpots
- $2.04 billion (Powerball): Nov. 7, 2022; California
- $1.765 billion (Powerball): Oct. 11, 2023; California
- $1.7 billion (Current Powerball jackpot)
- $1.602 billion (Mega Millions): Aug. 8, 2023; Florida
- $1.586 billion (Powerball): Jan. 13, 2016; California, Florida, Tennessee
- $1.537 billion (Mega Millions): Oct. 23, 2018; South Carolina
- $1.348 billion (Mega Millions): Jan. 13, 2023; Maine
- $1.337 billion (Mega Millions): July 29, 2022; Illinois
-  $1.326 billion (Powerball): April 6, 2024; Oregon
- $1.269 billion (Mega Millions): Dec. 27, 2024; California
If you’re able to overcome the unfathomable odds of winning the Powerball jackpot — 1 in 292.2 million — you’ll take home far less than the current advertised value.
You can thank federal and, for most winners, state taxes.
Should you win, you’ll immediately owe 24% to the IRS. On top of that, you’ll owe up to 37% in a federal marginal tax rate. After these withholdings, you would have about $485.3 million if you selected the cash option, or about $1.07 billion, after all 30 of your annuitized payments have been dispersed.
That means right off the top, you’ve lost about $285 million or $630 million, depending on the payout you selected.
In a handful of states, that’s roughly all you’ll owe to start. You may, however, owe income taxes on your prize later on. (But the payout may still be enough to offset the costs of ensuring you win the Powerball jackpot.)
Outside of those lucky states, you’ll also owe a state lottery tax. In Illinois, for example, the state withholding is 4.95%. After accounting for that, you would be taking home about $988.1 million in annuitized payments or about $447.2 million in cash — roughly $711.9 million and $323.1 million less than the current advertised values, respectively.
The interactive map below shows how much of the jackpot you would lose to withholdings in each state, as well as what your total estimated payout would be.
There are other factors to consider if you win the Powerball jackpot, of course. Experts recommend building a team to help you navigate your newfound wealth and keeping your victory a secret for as long as possible.
You will also, of course, have to decide which payout to select.
If you were to select the annuitized option in either game, you’ll receive a one-time payment, followed by 29 annual payments that increase by 5% each time until they reach the amount you won.
The cash option, meanwhile, signifies the amount of money game officials have determined is needed to fund the annuity option. That’s the physical cash on hand that has accumulated during the current jackpot run.
If you want your winnings right away, you’ll want to select the cash option, but if you want more money in the end, you may prefer the annuity option. Which is better for you may vary.
Powerball tickets are $2 each and are sold in 45 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Drawings are held every Monday, Wednesday, and Saturday at 10:59 p.m. ET.
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