Powerball 2025: What To Know Before You Play
Powerball is making headlines again, with the jackpot soaring to $1.8 billion since the last drawing.
Whether you're a casual player or just curious about the hype, here's a quick guide to some of the most common questions about Powerball — from which states sell tickets to what happens if you win all that cash.
🤔 Can't wait for a lotto win? 13 Ways to Get Cash Today
Where is Powerball played?
Powerball isn't a “one-state lottery;” it's a multi-state game played almost nationwide.
Currently, 45 states plus Washington, D.C., Puerto Rico, and the U.S. Virgin Islands participate in Powerball.
Where you can't buy Powerball tickets
Only five states have opted out of Powerball: Alaska, Hawaii, Nevada, Utah, and Alabama. Their reasons vary from religious objections to concerns about gambling competition.
Jackpot: How big is it now?
As of Sept. 3, 2025, the Powerball jackpot has soared to $1.8 billion, making it the second-largest Powerball prize in history.
- 🎟 Tickets cost $2 each
- 📅 Drawings happen three times a week (Monday, Wednesday, and Saturday at 10:59 pm ET)
- 🎲 The odds of winning the jackpot? 1 in 292 million (yes, you're more likely to be struck by lightning)
Are lottery winnings taxable? (Spoiler: Yes)
Before you start imagining how you'll spend your winnings, remember Uncle Sam gets a cut.
Federal taxes
Lottery winnings are considered taxable income. For big wins, the IRS automatically withholds 24% right off the top. Depending on the total amount, you could end up paying as much as 37% in federal income taxes.
State taxes vary
Where you live makes a huge difference. There are eight states that don't tax lottery winnings at all.
- California
- Florida
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
There are also states that don't require state income tax (but you still pay federal taxes).
- Alabama
- Alaska
- Hawaii
- Nevada
- Utah
Bottom line: Your “jackpot” number isn't the same as your actual take-home pay.
Should you take the lump sum or annuity?
Powerball winners get a choice of how they receive their cash prize:
- Lump sum (cash option): One big payment, but smaller than the advertised jackpot. For example, a $1.7 billion prize might be worth ~$800 million upfront before taxes.
- Annuity: Paid out over 30 years in annual installments. This option gives you more over time, but you'll need patience — and a plan.
Most winners choose the lump sum, but personal finance experts recommend consulting advisors before making the decision.
Quick tips for Powerball players
If you decide to pick up a Powerball ticket, here are some smart things to keep in mind:
Sign your ticket
If you buy a physical ticket, sign the back right away. That proves it's yours if it's lost or stolen.
Plan for taxes
If lightning strikes and you do win, don't start spending until you've set aside what you'll owe. A $1 billion jackpot could shrink by half after federal and state taxes.
Play smart (and for fun)
An MIT math professor recently pointed out that the expected value of a Powerball ticket is far below its $2 cost. Translation: it's entertainment, not an investment strategy. Have fun, but don't count on it to fund your future.
Final thoughts: Play responsibly, dream wisely
The Powerball craze captures imaginations because it represents a simple “what if?” What if I never had to work again? What if I could buy that dream home? What if I could pay off everyone's debts?
The truth is, the odds are long — but the fun is in the dreaming. If you play, do it responsibly. Spend only what you're comfortable losing, sign your ticket, and if you ever hit the jackpot, make smart choices about taxes, spending, and long-term financial planning.
Because as exciting as it is to fantasize about becoming a billionaire overnight, the best move is always making sure your everyday finances are just as secure.
Notice: Information provided in this article is for informational purposes only. Consult your attorney or financial advisor about your financial circumstances.
