Aug. 3, 2026, 5:20 p.m. ET
Millions of dollars, $748 million to be exact, are on the line tonight.
As lottery players await the Monday, Aug. 3 drawing and the chance that their $2 ticket could be worth nearly three-quarters of a billion dollars, financial planning for a potential jackpot win should be on their mind, especially if they’re feeling lucky.
With the prize pot nearing the top 10 largest jackpots in the game’s history, having a game plan in place is not only smart, but it’s also necessary. Claiming that much money, according to financial experts, will likely draw taxes, grifters, friends and family members.
Therefore, the first and most important piece of financial advice is: “Don’t shout your win from the rooftop,” Rob Burnette, financial and investment advisor at Outlook Financial Center in Troy, Ohio, previously told USA TODAY.
“If you’re lucky enough to win the lottery, keep it quiet. Get organized and make a plan. Consider staying anonymous, if it’s a possibility,” Burnette added.
Here’s what financial advisors suggest players do if they hit the $748 million jackpot.
How much is the jackpot, and what are my odds of winning?
A Powerball jackpot of $748 million is up for grabs ahead of tonight’s drawing. It has a cash value of $325.1 million and is the largest Powerball jackpot since a $1.817 billion prize was won in Arkansas on Christmas Eve.
While the odds of getting struck by lightning are considerably higher than the odds of hitting all of the winning numbers and taking home the jackpot, there’s no harm in trying. You could be the one in 292.2 million to take the prize home.
The jackpot was last won in May by two players, one in Florida and one in Texas, who split the $20 million prize, according to Powerball.
What to do if you’ve won the Powerball jackpot
Lie low for a while and keep the ticket secure, maybe in a safe, until you claim the prize at your state’s lottery headquarters, according to financial advisors and experts.
“The winner is not a true legal winner until the ticket is presented to lottery officials,” said Andrew Stoltmann, an attorney who represented six lottery “losers” that lost their winnings due to various investment scams or poor management. “If the ticket is lost or destroyed, the winner is, as a matter of law, out of luck.”
Steve Azoury, owner of Azoury Financial in Troy, Michigan, advised winning players to hire a tax attorney, a tax accountant and a financial advisor.
“They’ll work hand in hand to figure out (a) plan,” Azoury added.
The plan will go over which payout options are available:
- Annuity: One immediate payment followed by 29 annual payments, with each payment being 5% larger than the previous one.
- Lump sum: A one-time payment equal to the total cash in the jackpot prize pool.
Whether you should take the one-time payment or go with the annuity option, depends on you, specifically your goals, your age, and what lottery rules are for beneficiaries to continue receiving payments.
The size of the lottery jackpot, as well as current and projected earnings, are also some things to consider as you think about and discuss payout options, said Mark Steber, chief tax officer at tax-preparation service Jackson Hewitt.
The plan should also include a “fall guy,” according to Azoury. “That’s the person or advisor who keeps you from giving loans to anybody, who tells people, ‘All the money’s tied up in investments, not available. We have nothing available to help you out, and we’re not interested in your project,'” he added.
Since the sum is too large to be covered by Federal Deposit Insurance Corporation (FDIC) insurance, winnings should be deposited in a brokerage account of a major broker-dealer, such as Merrill Lynch or Goldman Sachs, and initially invested in short-term U.S. Treasuries until more concrete investing decisions can be made, Stoltmann said.
How much do you net? And how quickly can you get it?
It depends. Complex state laws and how you decide to “take” your money will impact how much cash you’ll ultimately net, but you could see some activity in your bank account in a few weeks, Azoury said. Claim periods do vary by jurisdiction, he added.
Since you’ll likely be propelled into the highest federal tax bracket after your win, your state of residency and where you bought the winning ticket can greatly impact what you pay in state taxes.
For example, if you’re a California resident and purchase your ticket there, then you pay the 37% federal tax rate; however, you won’t have to pay a state tax because California doesn’t tax lottery winnings, Steber said. New York, on the other hand, has the highest tax rate on lottery winnings.
Now, in another example, if you’re a California resident on vacation in Rhode Island and you decide to buy a lottery ticket there and win, you’ll have to declare your winnings on your federal and California tax returns and file a non-resident Rhode Island tax return.
While it’s unlikely that you’ll have to pay taxes on the same income in two states, the inner workings of multi-state tax issues can be complicated, Steber said. You should, though, claim a tax credit for the Rhode Island taxes on your California return so you won’t be taxed twice.
“This is where a tax professional really comes in handy,” Steber added. “State taxes can be very tricky.”
How to play the Powerball
Playing the Powerball is simple:
- Buy a $2 ticket, wherever tickets are sold.
- Think about which six numbers you’ll pick.
- Select five “white” numbers between 1 and 69, and one “red” number between 1 and 26 for the Powerball.
Players may also add “Power Play,” a feature that multiplies most non-jackpot prizes. The “Power Play” multiplier can multiply winnings by: 2X, 3X, 4X, 5X or 10X.
If you’re not feeling particularly lucky or want the computer to do the work for you, the “Quick Pick” option is available. All of the numbers selected with the “Quick Pick” option are computer-generated.
Players must match all five white balls in any order and the red Powerball to win the jackpot. Drawings are held every Monday, Wednesday, and Saturday nights at 10:59 p.m. ET. If no one wins the jackpot, the cash prize will continue to tick up.
Contributing: Medora Lee, Rachel Barber, USA TODAY
