The Powerball jackpot has reached a staggering $1.6 billion after 45 consecutive drawings without a winner, setting the stage for an exciting drawing scheduled for Monday night at 10:59 p.m. ET. This enormous amount now stands as the fourth largest jackpot in Powerball history and the fifth largest in the history of U.S. lotteries, according to the Multi-State Lottery Association.
To claim the jackpot, participants must match all six numbers on their ticket. The winner will face the decision of accepting the annuitized prize of $1.6 billion or opting for a lump-sum payment that is projected at $735.3 million. The annuity option offers a unique benefit, as it includes an initial payment followed by 29 annual payments that rise by 5% each year.
It’s important to note that both payment options are subject to taxes. An automatic federal withholding of 24% will be applied to winnings, but winners may find themselves in the top 37% federal tax bracket upon filing their 2025 tax returns. Additionally, state taxes may further diminish the total winnings. However, eight states — California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — do not impose any taxes on lottery winnings, offering a potential benefit for lucky winners there. Most other states generally impose state taxes ranging from approximately 4% to 6%.
To provide potential winners with a clearer picture of their take-home amounts, a detailed state-by-state breakdown has been compiled, illustrating the possible earnings from both payout options across various states and districts.
This exciting jackpot opportunity has sparked interest nationwide, and many hope to become the next big winner. With the drawing fast approaching, the anticipation continues to build as players across the country prepare for their chance at life-changing winnings.