Powerball jackpot hits $1 billion—here’s after-tax payout by state

More than a year after the Powerball jackpot last topped $1 billion, the prize has climbed back to that level ahead of Saturday night’s drawing at 10:59 p.m. ET.

After 39 drawings without a winner, the $1 billion prize ranks as the sixth-largest jackpot in the game’s history, according to the consortium that runs the lottery. The last $1 billion jackpot was claimed in April 2024, and the biggest since then was a $526.5 million win in March.

To claim the prize, you’ll need to beat odds of 1 in 292,201,338 and match all six numbers, including the red Powerball. Smaller prizes are also available, including $1 million for matching all five white balls without the Powerball.

Winners can choose between two payout options: the full jackpot spread out as annual payments over 30 years or a lump-sum cash option worth just under half the advertised prize.

No matter which option you select, the Internal Revenue Service takes a cut. Winnings are considered taxable income, so 24% is withheld immediately. But the windfall would almost certainly put you in the top 37% federal tax bracket, so expect to pay the rest when you file your 2025 tax return.

Help us help you: Take our survey on work, money and life goals

On top of that, most states levy their own income taxes, ranging from 2.5% to 10.9%. Eight states don’t tax lottery winnings at all: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

It’s worth noting that five states don’t participate in Powerball: Alabama, Alaska, Hawaii, Nevada and Utah.

Based on a top federal rate of 37%, here’s what the total after-tax payout would look like in each state and Washington, D.C., for both the lump sum and the 30-year annuity, according to USAMega.com.

Last chance to save: Want to stand out, grow your network, and get more job opportunities? Sign up for Smarter by CNBC Make It’s new online course, How to Build a Standout Personal Brand: Online, In Person, and At Work. Learn how to showcase your skills, build a stellar reputation, and create a digital presence that AI can’t replicate. Sign up today with coupon code EARLYBIRD for an introductory discount of 30% off the regular course price of $67 (plus tax). Offer valid July 22, 2025, through September 2, 2025.

Plus, sign up for CNBC Make It’s newsletter to get tips and tricks for success at work, with money and in life, and request to join our exclusive community on LinkedIn to connect with experts and peers.