On December 18, 2025, the Powerball jackpot surged to a massive $1.5 billion, marking the seventh-largest lottery prize in U.S. history. The spike came after no ticket matched all six numbers in Wednesday night’s draw, setting the stage for one of the most anticipated lottery events of the year.
According to the latest draw results, the winning numbers were 25, 33, 53, 62, 66, and the Red Powerball 17.
If a winner emerges in the next drawing, they will face a crucial decision: take the full $1.5 billion as a 30-year annuity or opt for the one-time cash payout of $686.5 million.
Historically, most winners choose the lump sum, even though it results in a significantly smaller final amount after taxes.
Powerball Jackpot Surges to $1.5 Billion
For those choosing the cash option, the first deduction is the mandatory 24% federal withholding tax, which immediately reduces the payout to approximately $521.7 million. However, the actual tax burden is higher.
With the top federal marginal tax rate at 37%, the winner’s final take-home amount could drop to around $432.5 million, depending on their total taxable income.
State taxes add another layer of complexity. Some states, such as New York, impose lottery taxes as high as 10.9%, while others—including Texas, Florida, and California—charge no state tax on lottery winnings.
Nobody won Powerball. Jackpot now 1.5 billion dollars. pic.twitter.com/D5mY0kpirK
— The Gold Standard (@goldstandard555) December 18, 2025
This means the winner’s location could impact their final payout by tens of millions of dollars.
How Much Will the Winner Really Take Home?
Players who choose the annuity option would receive annual payments of $50 million before taxes.
After applying the 37% federal marginal rate, the yearly amount would drop to roughly $31.5 million. While the annuity provides long-term financial stability, most winners still prefer the immediate liquidity of the lump sum.
According to Forbes, the next Powerball draw is scheduled for Saturday night, and ticket sales are expected to surge as players hope to claim one of the largest jackpots ever offered.
With the jackpot soaring and millions of Americans participating, the upcoming draw promises to be one of the most closely watched lottery events in recent years. Whether the winner chooses the annuity or the lump sum, the life-changing prize is guaranteed to spark national attention.
