What are the largest lottery jackpots in U.S. history? How much tax will the Powerball’s $1.82bn winner pay?

A single ticket has won the second-largest lottery jackpot in U.S. history, claiming an estimated $1.82 billion prize in Wednesday’s Powerball drawing.

Organizers said a ticket bought in Arkansas matched all six numbers, ending a run of 46 Powerball drawings without a grand-prize recipient.

The ticket holder will have the choice between receiving their winnings in 30 annual instalments, or as a smaller, lump-sum payment. Known as the “cash option”, the up-front prize is worth $834.9 million.

What’s the largest ever U.S. lottery jackpot win?

In U.S. lottery history, Wednesday’s jackpot is surpassed only by the $2.04bn Powerball top prize won by California man Edwin Castro in Nov. 2022. Castro opted for the lump-sum payment, which amounted to $997.6m.

These are the largest ever lottery jackpots in the U.S.:

• 1: Powerball, Nov. 7, 2022: $2.04bn
• 2: Powerball, Dec. 24, 2025: $1.82bn
• 3. Powerball, Sep. 6, 2025: $1.79bn
• 4. Powerball, Oct. 11, 2023: $1.77bn
• 5. Mega Millions, Aug. 8, 2023: $1.6bn
• 6. Powerball, Jan. 13, 2016: $1.59bn
• 7. Mega Millions, Oct. 23, 2018: $1.54bn
• 8. Mega Millions, Jan. 13, 2023: $1.35bn
• 9. Mega Millions, Jul. 29, 2022: $1.34bn
• 10. Powerball, Apr. 7, 2024: $1.33bn

How much tax will the $1.82bn jackpot winner pay?

Wednesday’s jackpot amount will be subject to both state and federal taxes. At the federal level, the U.S.’s Internal Revenue Service (IRS) applies a 24% levy on lottery winnings above $5,000. At state level, meanwhile, a 3.9% tax rate is applied, according to Arkansas’ lottery commission.

What’s more, the IRS can be expected to take a further bite out of the prize come federal tax season.

Regardless of whether the ticket holder chooses to pick up their money as a lump sum or in instalments, the jackpot win appears certain to leave the recipient in the agency’s top income-tax bracket. In 2025, single filers must pay 37% on taxable income over $640,600.

When they file their federal taxes in early 2026, Wednesday’s winner can therefore expect to owe the difference between the 24% lottery tax and the higher income-tax rate applied by the IRS.

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