$2.04 billion Powerball jackpot is now the largest prize in history—here are the top 5 so far (2023)

FAQs

What is the largest Powerball jackpot in history? ›

$2.04 billion

The largest lottery jackpot to date, a Powerball drawing, was won on Nov. 7, 2022. The ticket was sold at Joe's Service Center in Altadena, Calif., just north of Pasadena. Lottery officials said the ticket holder was the first lottery billionaire in the state.

That's because when anyone wins the lottery, the IRS withholds 24% of the winnings off the top. With the $2.04 billion Powerball jackpot, if the winner opted for the lump sum cash value of $997.6 million, they would be subject to federal income tax at the top tax rate, which is 37%.

The winners — John and Lisa Robinson in Tennessee, Maureen Smith and David Kaltschmidt in Florida, and Marvin and Mae Acosta in California — split the full prize, giving them the option of roughly $533 million before taxes as an annuity or $327.8 million as the lump-sum payment.

Life after winning the lottery may not stay glamorous forever. Whether they win $500 million or $1 million, about 70 percent of lotto winners lose or spend all that money in five years or less.

More jackpot-winning tickets have been sold in Pennsylvania than in any other state, Powerball records show. A total of 18 winners have been recorded in the Commonwealth of Pennsylvania, including the most recent jackpot in early August worth $122.4 million.

CLEVELAND — Although nobody hit the gigantic $1.6 billion jackpot in the latest Powerball drawing that was held on Saturday, Nov. 5, 2022, the Ohio Lottery says there are still thousands of people taking home smaller amounts of prize money.

The jackpot ranks as the second-largest in Powerball history and third-largest in U.S. lottery history and could break lottery records by Saturday night amid a flurry of ticket-buying. The largest lottery payout ever was $1.586 billion, split between three winners in California, Florida and Tennessee.

Winnings are subject to federal and state income taxes. Most tangible prizes like cars and homes are taxed at their fair market value. Lottery winnings are taxed for the year in which they are collected, allowing winners who choose annuities to spread the tax bill.

Choosing a lump-sum payout can help winners avoid long-term tax implications and also provides the opportunity to immediately invest in high-yield financial options like real estate and stocks. Electing a long-term annuity payout can have major tax benefits. Federal taxes reduce lottery winnings immediately.

How do I avoid paying taxes on prize winnings? ›

When you take a lump-sum payment, it is less than the amount just reported as the jackpot. Taxes and discounts are taken out of the payment. You can take your winnings all at once or invest them on your own to help make more money later. Lotteries may have annuity payments.

Result: 1 chance in 302,575,350 of winning. Or, in other words, odds of 302,575,349 to 1 against. A match of four of the main numbers is 325 times as likely.

Did anyone win Powerball last night, Jan. 25, 2023? No one matched all six numbers to win the Powerball jackpot. No tickets matched all five numbers except for the Powerball worth $1 million.

Americans from all over are paying a few dollars for a chance to be a billionaire. But more often than not, lottery winners have a losing track record of hanging on to their winnings. Roughly 70 percent lose it all within five years, regardless of how much their luck earns them.

Don't Make Major Changes in Your Life. If someone were to ask you what you would do once you become a Powerball winner, you might say, "quit my job" or "buy a mansion." However, experts suggest that you don't make any big moves immediately.

There are eight states that do not tax Powerball winnings: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Pennsylvania, North Dakota, Indiana and Ohio also make our list of best states. Take Our Poll: Do You Think Student Loan Debt Should Be Forgiven?

The states with the most Powerball lottery winners are...

That would be Indiana. The Hoosier State boasts 39 jackpot wins since 1992, when Powerball got its start. Read on to see how your state stacks up! Keep in mind that five states don't have state lotteries: Alabama, Alaska, Hawaii, Nevada, and Utah.

What state has the best lottery? ›

Of the 45 that do, Massachusetts had the highest per capita lottery income in 2020, generating around $746 per resident. That's over 80% higher than the per capita income of the No. 2 state, neighboring New York ($412). All told, the top 18 states in terms of per capita lottery income are east of the Mississippi River.

A New South Wales player and a Western Australian resident have shared Powerball's $120 million jackpot, taking home $63,309,056.98 each.

A warehouse supervisor from Tennessee in the United States has been confirmed as one of the winners of the world's biggest ever lottery prize. John Robinson is taking a single lump sum of $328 million (£230 million), rather than annual payments which would total more than half a billion dollars. Tim Allman reports.

Quick Pick vs.

“With the data available, roughly 80% of Powerball jackpot-winning tickets are quick picks. The reason the percentage is so high is because the majority of purchases are quick picks. If the majority of players selected their own numbers, we would expect to see a higher percentage of manual picks.”

The winning ticket was sold at Joe's Service Center in Altadena, about 15 miles outside downtown Los Angeles, according to the California Lottery. The owner of the gas station and convenience store, Joseph Chahayed, was presented Tuesday with a $1 million check for selling the ticket.

So, is it better to play Quick Pick or to select your own numbers? Chances of winning the lotto between playing quick picks or selecting your own numbers are both equal. “Around 70 to 80 percent of Powerball players use Quick Pick tickets, and the same percentage of winning entries are Quick Picks,” one report said.

If you take the lump sum option, there will be a federal tax of 24% on your winnings — about $143.2 million. You'd also owe more at tax time, another 13% or about $77.5 million, according to the USA Mega website, which would bring your total winnings to $375,958,045.

Your Social Security benefits will not be reduced as a result of winning the lottery, regardless of whether or not you have reached your full retirement age.

How much do I pay in taxes if I win 1,000,000? If your gross prize for lump sum payout is $1,000,000, you need to pay $334,072 in total tax ($240,000 federal withholding, plus the remaining $94,072 for single filing status in 2021).

Is it better to take cash or annuity lottery? ›

With an annuity you can spread your taxes out over a longer period of time rather than taking a big hit by accepting the lump-sum payment. As GOBankingRates reported, a winner who takes the cash option on the current mega Millions jackpot could end up with less than $707.9 million after the IRS gets its cut.

You can physically take cash out of the bank to give to your loved ones, or you can transfer funds into their accounts. Just know that these can also be subject to taxation depending on the amount. This allows your family or friends to do what they please with the money to fund personal expenses.

If you take money out of an annuity, you may face a penalty or a surrender fee, also known as a withdrawal, or surrender charge. Annuity contracts include surrender charges to make up for the insurance company's loss if you choose to withdraw before they can earn interest on your principal.

An irrevocable trust, however, gives you greater asset protection. They protect lottery winnings and investments because the assets legally do not belong to you, and they benefit your family, as they are not subject to estate taxes.

The IRS will automatically take 24% of your winnings off the top, and the rest will be due at tax time. Around $17.82 million in federal income tax will be owed, per year, for each of the remaining 27 payments. That comes to a ballpark grand total of about $531.1 million in federal tax.

State lottery agencies are required to withhold 25 percent of your winnings for federal income taxes if the total prize minus your wager is more than $5,000. This 25-percent withholding rate applies to all taxpayers, regardless of whether back taxes are owed or not.

According to Mega Millions, it all comes down to your state's public disclosure laws. Some are required to publicly identify winners while others are not.

How long you actually live is one of the more significant risks faced by retirees. The longer you live beyond your actuarial life expectancy, the better the annuity option generally becomes because of the guaranteed lifetime payment. If you are in poor health, you may find the lump sum more attractive.

A cash lump sum means accepting the entire payment all at once, while annuity means accepting a series of payments over time. It's more common for winners to take the lump sum, Blenner said, because it provides them with the freedom to invest as they wish with maximum available funds up front.

Richard Lustig was an American man who came to prominence for winning relatively large prizes in seven state-sponsored lottery games from 1993 to 2010. His prizes totaled over $1 million. He wrote Learn How To Increase Your Chances of Winning the Lottery.

How do lottery winners spend their money? ›

A history of past lottery winners shows a wide range of what players do with their winnings. Many have paid off debts, bought homes and invested their money, while others have put the cash toward building a water park, gambling in Atlantic City or starting a women's professional wrestling organization.

The jackpot's odds are 1 in 292.2 million. Double lottery wins like the one in Delaware are rare, but not unheard of. In 2021, the Florida Lottery reported that Susan Fitton, 64, had won $4 million from two Mega Millions tickets in the same drawing.

Whether they win $500 million or $1 million, about 70 percent of lotto winners lose or spend all that money in five years or less.

Powerball is called a Pick-5+1 lottery, rather than a Pick-6. The bonus ball must be picked precisely. It can even be the same number as one of the white balls! All of this makes winning a jackpot far more difficult, while still keeping the appearance of a Pick-6.

Lottery is a game of chance and probability, so the best way to increase your odds of winning is to buy more tickets. If you have a 1 in 300 million chance of winning, buying a second ticket doubles your odds to 2 in 300 million, another to 3 in 300 million, and so on.

There was no jackpot winner in California for this draw. But there are 122,524 winning tickets! Get your ticket for the next draw.

The lucky numbers from the Wednesday night drawing are 9, 17, 20, 38, 40 with Powerball 18. CLEVELAND — Although nobody won the $526 million jackpot in the Powerball drawing for Wednesday, Jan. 25, 2023, the Ohio Lottery says there were thousands of other prizes hit throughout the state.

The jackpot grew quite a bit in the meantime, and, after 35 consecutive rounds without a grand prize winner, stood at an estimated $700 million for Wednesday night's drawing. The winning numbers Wednesday were 19, 36, 37, 46, 56, and a Powerball of 24. It was still unclear if any winning tickets were sold.

BRAINTREE, MA – Mavis Wanczyk of Chicopee, MA is the sole winner of a $758.7 million Powerball jackpot after the numbers on her lucky ticket matched the first five winning numbers plus the Powerball (06-07-16-23-26, PB 04) selected in Wednesday night's drawing.

What are the 5 most common Powerball numbers? ›

There are some numbers that are drawn more frequently than others in Powerball. The five most frequently drawn numbers of all time are 32, 39, 22, 41, 36, and 16, according to the Powerball statistics tracking website Powerball.net.

The jackpot's odds are 1 in 292.2 million. Double lottery wins like the one in Delaware are rare, but not unheard of. In 2021, the Florida Lottery reported that Susan Fitton, 64, had won $4 million from two Mega Millions tickets in the same drawing.

When it comes to quick pick tickets, or the machine picking your numbers, the Multi-State Lottery Association said: “With the data available, roughly 80% of Powerball jackpot-winning tickets are quick picks. The reason the percentage is so high is because the majority of purchases are quick picks.

Julie Leach, 50, matched all of the winning numbers drawn in the Sept. 30 Powerball drawing: 21-39-40-55-59 and the Powerball, 17, to win the enormous jackpot.

But the winner hasn't come forward yet. One lucky winner bought the nation's only matching Powerball ticket worth more than $2 billion at an Altadena gas station, becoming California's first billionaire-by-lottery, state lottery officials said Tuesday.

Choosing a lump-sum payout can help winners avoid long-term tax implications and also provides the opportunity to immediately invest in high-yield financial options like real estate and stocks. Electing a long-term annuity payout can have major tax benefits. Federal taxes reduce lottery winnings immediately.

Make copies of the ticket, secure it

Don't lose the ticket. State Farm says to make several copies of both sides of the ticket to show your lawyers and accountants. Then secure the actual ticket in a safe deposit box or personal safe. Once you've spoken to them, then sign the ticket.

When you win the lottery jackpot, you're given a choice between a lump-sum payment or an annuity paid out over nearly three decades. Most lottery winners opt for a lump-sum prize. No one has chosen the annuity option since 2014, according to Axios.