Powerball Jackpot Soars to $1 Billion, Largest of the Year
The Powerball jackpot reached $1 billion for Wednesday night's drawing, the highest of 2026. A single winner could receive $433.1 million as a lump sum before taxes, significantly reducing the final payout.
Key takeaways
- The Powerball jackpot reached $1 billion for Wednesday's drawing, the highest of 2026.
- A winner can choose between $1 billion paid over 30 years or a lump sum of $433.1 million.
- Federal taxes will significantly reduce the winnings, potentially to $272.8 million for the lump sum.
- State taxes on lottery winnings vary, with New York having the highest rate and some states offering none.
- This jackpot is the eighth largest in Powerball history; the record is $2 billion.
The Powerball jackpot has climbed to $1 billion ahead of Wednesday evening's drawing, representing the largest lottery prize of 2026. This figure was an increase from the initial estimate of $975 million following Monday's drawing, with ticket sales driving the amount higher.
A winner selecting the lump sum option would receive $433.1 million before federal taxes. After a mandatory 24% federal withholding, this amount would be reduced to $329.1 million. Should the winner face the highest federal marginal tax rate of 37%, their net winnings could be as low as $272.8 million. For those opting for the annuity, the annual payout of $33.3 million would decrease to $21 million after federal taxes.
State tax policies on lottery winnings vary significantly. New York imposes the highest state tax rate at 10.9%, while states such as California, Florida, and Texas do not tax lottery winnings.
Despite its substantial size, this $1 billion jackpot ranks as the eighth-largest in Powerball history. The record for the largest Powerball prize remains $2 billion, won by an individual in California in 2022.
The drawing is scheduled for 10:59 p.m. EDT on Wednesday. The odds of winning the grand prize are approximately 1 in 292.2 million, with the chances of winning any prize being about 1 in 25.
Sources reviewed
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