DOTHAN, Ala. (WDNews) — The Powerball jackpot has climbed to an estimated $1.7 billion for Saturday’s drawing, making it the third-largest lottery prize in U.S. history.
While the headline number is huge, the actual amount the winner would take home is far less. The $1.7 billion figure represents the annuity option, which is paid out over 30 years. Most winners choose the lump-sum cash option, which for this jackpot comes to about $770.3 million before taxes. After federal withholding and additional income tax rates of up to 37 percent, the take-home amount would likely fall around $485 to $490 million, depending on state taxes.
The two biggest lottery jackpots ever came in at $2.04 billion and $1.765 billion, both Powerball drawings won in California. In November 2022, Edwin Castro claimed the record $2.04 billion prize and took a lump sum of nearly $997.6 million before taxes. The October 2023 drawing reached $1.765 billion with a cash value of $774.1 million.
Even with the major tax cuts, Saturday’s jackpot would still put the winner among the biggest lottery earners in history, with a payout that could change lives for generations.
