Hit the jackpot, meet the taxman.
The Powerball jackpot has soared to a staggering estimated $1.8 billion — but the lucky winner will have to fork over millions in taxes before enjoying the benefits of the gargantuan prize.
Saturday’s drawing, the second-largest in US history, has dreamers eager to cash in, but even if someone hits, a significant portion will go straight to taxes, leaving the winner far short of the advertised jackpot.
Lotto winners lose at least 24% of the grand prize to federal income taxes — meaning Saturday’s jackpot winner could owe a whopping $198.3 million, CNBC reported.
However, the colossal earnings will push the lucky winner into a 37% federal tax bracket, meaning they’ll surrender even more on top of any state taxes that may apply, depending on where they live.
In New York, lottery winnings are taxed at 10.9%, according to the New York Lottery guidelines.
In 2025, individuals earning more than $626,350 and married couples with income over $751,600 fall into the 37% federal tax bracket.
When cashing in, winners can choose to receive their winnings in one of two ways: an immediate lump sum or an annuity payment followed by 29 annual premiums increasing by 5% each year.
The winner of Saturday’s jackpot — a 1-in-292 million chance — who opts for the lump sum would take home about $826.4 million, while the annuity option is worth $1.80 billion, the outlet reported.
Experts recommend the annuity for the full jackpot and three decades of steady payments, but most ticket holders prefer the one-and-done payday.
No one has clinched a Powerball win since May 31, making way for an enviable prize that keeps stacking up.
The highest-ever payout was $2.04 billion in 2022.
The next Powerball drawing happens live on Saturday at 10:59 p.m. ET.
The post Here’s how much the Powerball winner will owe in taxes after the $1.8 billion jackpot appeared first on New York Post.
