Answer in brief
A Powerball winner chooses $793 million paid over 29 years or $339.9 million in cash, both before tax. The IRS rules require 24% federal withholding, and the final federal bill can reach the 37% top rate. State tax depends on the state.
The $793 million jackpot is $339.9 million as a lump sum
A winner of the Powerball jackpot would choose between two payouts. Powerball.com lists the estimated jackpot at $793 million with a cash value of $339.9 million, and says the annuity is paid in 30 graduated payments over 29 years. Both figures are stated before federal and state taxes. The cash option is about 43% of the headline number. This is a US game, and the rules below are as of 3 November 2026.
Monday's drawing on 2 November produced the numbers 7, 23, 29, 64 and 66 with Powerball 23, and Yahoo News reported that no one won the jackpot. ABC7 New York gave $803.9 million for the same drawing, while Powerball.com and most other outlets gave $793 million, so the exact headline figure differs by source.
What the IRS withholds and where the 37% top rate starts
The IRS instructions for Form W-2G set regular gambling withholding at 24% when winnings minus the wager exceed $5,000, and the 24% applies to the full proceeds. The same rate applies to installment payments. A winner without a taxpayer identification number faces 24% backup withholding. Applied to the $339.9 million cash value, 24% would be about $81.6 million. That is arithmetic, not a bill.
Withholding is a down payment. The IRS says lottery winnings are taxable income reported on Form 1040. For tax year 2026 the IRS lists a top rate of 37% above $640,600 of taxable income for single filers and $768,700 for married couples filing jointly. A flat 37% of the cash value would be about $125.8 million, but the real federal tax is somewhat lower, and a personal case needs a tax professional.
State tax and the Florida Lottery's 90-day name shield
State tax depends on the state. A CNBC report from the 2024 Mega Millions run listed California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming as states with no tax on lottery winnings, and said state rates elsewhere generally run from 3% to 6%. Those lists change, so the lottery of the state where the ticket was bought is the place to confirm.
Claim rules also differ. The Florida Lottery tells players to sign a ticket as soon as they buy it and to claim within 180 days after the draw date. It says the names of winners claiming $250,000 or more are exempt from public disclosure for 90 days unless waived, and that the payout choice is final, so advisers should be consulted first.
Odds of 1 in 292,201,338 and the next drawing on Wednesday
Powerball.com gives the odds of winning the jackpot as 1 in 292,201,338 for a $2 play, and the odds of winning any prize as 1 in 24.87. Powerball is drawn on Monday, Wednesday and Saturday, according to ABC7 New York.
The next drawing is on Wednesday, 4 November 2026. Its jackpot estimate will appear on Powerball.com. A winning ticket is claimed through the lottery of the state where it was sold.
Questions and answers
Is the Powerball jackpot taxed before it is paid?
Yes. The IRS instructions require 24% federal withholding on lottery winnings above $5,000 after the wager. The final federal bill can be higher, up to the 37% top rate, and state tax may apply.
Should a Powerball winner take the annuity or the cash?
Powerball.com lists $793 million as an annuity over 29 years or $339.9 million in cash, both before tax. Which is better depends on a personal situation, so a tax adviser should be asked.
Can a Powerball winner stay anonymous?
It depends on the state. The Florida Lottery, for one, shields the names of winners claiming $250,000 or more for 90 days, after which the name is no longer confidential. Check the state of purchase.