The Powerball jackpot has reached a record-breaking $700 million, with no tickets matching all six numbers drawn on Wednesday night. This is the largest lottery prize of 2025 so far. The eventual winner will take home a much smaller payout after taxes.
To claim the prize, the winner can choose between taking the $700 million in annualized payments over 30 years or a one-time lump sum cash payout of $316.3 million. However, this option comes with a 24% federal withholding, reducing the winnings to $240.4 million before additional state taxes.
The winner’s final take-home amount will depend on their taxable income and state of residence. In some states like New York, lottery winnings are taxed at 10.9%, while in others like Texas, Florida, and California, there is no tax.
With odds of 1 in 292.2 million to win the Powerball jackpot, the winner must overcome astronomical odds to claim this prize. The next draw for the Powerball jackpot will be Saturday night, with the Mega Millions lottery set to draw on Friday at $234 million.
Source: https://www.forbes.com/sites/siladityaray/2025/08/21/powerball-jackpot-rises-to-700-million-heres-how-much-the-winner-could-take-home-after-taxes