The Powerball jackpot has soared to a staggering $1.3 billion after no one clinched the winning ticket in the drawing held on Monday, September 1. This massive amount ranks among the top 10 highest jackpots ever offered in the history of U.S. lotteries, including both Powerball and Mega Millions. The next drawing is set for Wednesday, September 3, 2025, and a huge turnout is anticipated due to the mounting excitement over the enormous jackpot.
Understanding the Real Take-Home Prize
The announced $1.3 billion represents the annuity option, which involves an initial payment followed by 29 annual payments that increase over 30 years. However, most winners opt for the one-time cash payment, which in this instance would be $589 million before taxes. Lottery winnings are subject to both federal and state taxes:
- The federal government automatically withholds 24% of the cash prize.
- An additional 13% is typically added when filing taxes, bringing the total federal tax to 37%.
Moreover, some states impose their own taxes, ranging from 2.9% to 10.9%, depending on the jurisdiction. However, eight states—California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming—do not levy state taxes on lottery winnings, allowing residents there to keep a larger portion of the prize.
Monday's Drawing Results: Big Prizes, No Jackpot Winner
The winning numbers drawn on Monday were: 8, 23, 25, 40, 53, and the red Powerball: 5. The Power Play multiplier was 3x. While no one matched all six numbers to win the jackpot, several players walked away with substantial prizes:
- Two tickets worth $2 million each were sold in Montana and North Carolina, both opting for the Power Play feature.
- Ten tickets with $1 million payouts were sold across Florida, California, New Jersey (2), Kentucky, Massachusetts, Michigan, New York, Pennsylvania, and Virginia.
How to Play Powerball
A Powerball ticket costs $2, with the option to add Power Play for an extra $1, which multiplies non-jackpot winnings. Note that the Power Play option is unavailable in California. To win the jackpot, a player must:
- Match all five main numbers (from 1 to 69).
- Match the red Powerball (from 1 to 26).
Drawings occur three times a week—on Mondays, Wednesdays, and Saturdays at 10:59 p.m. ET—and are available in 45 states, plus the District of Columbia and Puerto Rico.
Real Odds of Winning
The odds are not in favor of dreamers. The chance of hitting all six numbers and claiming the grand prize is 1 in 292,201,338. Nonetheless, millions of players engage each week, lured by the slim possibility of instant wealth. With the jackpot now at $1.3 billion, this Wednesday's drawing on September 3 is shaping up to be one of the most anticipated events in recent Powerball history.
FAQs About the Powerball Jackpot
What is the difference between the annuity and cash options for the Powerball jackpot?
The annuity option provides an initial payment followed by 29 annual payments that increase over 30 years. The cash option offers a one-time lump sum, which is generally lower but paid immediately.
How are lottery winnings taxed in the United States?
Lottery winnings are subject to a 24% federal withholding tax, with an additional 13% typically added at tax time, totaling 37%. State taxes vary, with some states not taxing lottery winnings at all.
Which states do not tax lottery winnings?
California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not impose state taxes on lottery winnings.