The jackpot for Wednesday's Powerball drawing is $930 million, the seventh largest grand prize in the game's history.

The nearly $1 billion jackpot is for a single-winning ticket who chooses an annuity option, paid over 30 years. Winners almost always opt for cash prizes, which would be $429 million — before taxes.

However, the windfall would significantly shrink after taxes.

Federal taxes on lottery winnings

The prize is subject to an automatic federal withholding, with the IRS levying 24% on winnings of more than $5,000.

If you choose the $429 million cash option, the 24% withholding automatically reduces your prize to about $326 million, with $103 million going straight to Uncle Sam.

And when you file your 2025 returns, plan on paying another 13% in federal taxes. That's because

See Full Page