(NewsNation) — The Powerball jackpot has reached an estimated $1.4 billion but how much a lucky winner takes home depends on where they live.
The massive sum marks the sixth time the Powerball jackpot has surpassed $1 billion, and the 13th time a jackpot, either Powerball or Mega Millions, has topped $1 billion.
Winners have the option to receive their prize as an annuity, which is paid out in 30 graduated payments for nearly 30 years, or as a one-time payment. The estimated cash value of Wednesday’s jackpot is $634.3 million.
However, a winner doesn’t get the full amount as they have to pay federal taxes and, in some cases, state taxes.
Best states to take home biggest jackpot
The federal government withholds 24% of any prize over $5,000 and an extra 14.6% is taken at tax time for a total federal tax of about 37%. Some states take an additional 10%.
Wyoming, Texas, Washington, Tennessee, New Hampshire, California and Florida rank at the top for taking home the most money from the jackpot. None of these states tax lottery prizes, meaning a winner could collect $820 million over 30 payments, CBS News reports.
Lottery players in states with higher tax rates would take home a smaller prize. In Minnesota or Oregon, a jackpot winner could still secure close to $692 million. And, lotto players in New Jersey, Washington, D.C., and New York could take home nearly $680 million.
Residents in Alaska, Alabama, Hawaii, Nevada and Utah have no chance of winning as the states do not have the Powerball game.
According to Powerball, the chances of winning the jackpot are one in 292 million.
Current Powerball jackpot is fifth-largest ever
The current jackpot is the fifth-largest in Powerball history, and the ninth-largest across both draw games. It sits just below the $1.326 billion Powerball jackpot won in Oregon last spring.
The other four largest jackpots ever include $2.04 billion in 2022 (Powerball), $1.765 billion in 2023 (Powerball), $1.602 billion in 2023 (Mega Millions), and $1.586 billion in 2016 (Powerball).
Players hoping to win will get another shot at 10:59 p.m. ET Wednesday.