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**Powerball Jackpot Soars to $1.8 Billion, Second Largest in U.S. History**

**NEW YORK** – Lottery fever is gripping the nation as the Powerball jackpot has reached an estimated $1.8 billion for Saturday night’s drawing, making it the second-largest prize in U.S. lottery history. Only the record-breaking $2.04 billion Powerball jackpot from November 2022 exceeds this massive prize.

The drawing will be held live on Saturday at 10:59 p.m. ET, offering hopefuls a 1 in 292 million chance of hitting the grand prize.

While the potential winnings are astronomical, experts warn that the final take-home amount will be significantly less after taxes. Winners face a choice between an estimated $1.8 billion annuity paid out over 30 years, or a lump sum payment estimated at $826.4 million.

Regardless of the chosen payout method, the IRS will immediately withhold 24% of the winnings for federal taxes on prizes exceeding $5,000. For the cash option of $826.4 million, this amounts to a withholding of $198.3 million. However, due to the massive windfall, the winner will likely fall into the top federal tax bracket of 37%, meaning they could owe millions more at tax time. Individuals with taxable income above $626,350 and married couples filing jointly earning $751,600 or more for 2025 are subjected to the 37% income tax.

Tax professionals advise winners to seek expert financial planning advice to navigate the complex tax implications and maximize their winnings.

State taxes will also further reduce the winnings. Some states do not tax lottery winnings, while others have significant state income taxes.

For those seeking a smaller, though still substantial prize, Friday night’s Mega Millions jackpot is estimated at $336 million.

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