TAMPA, Fla. (WFLA) — An estimated $1.08 billion jackpot is destined for the bank account of one lucky winner in California following Wednesday’s Powerball drawing.

The single ticket successfully matched all six numbers: white balls 7, 10, 11, 13, 24, and red Powerball 24 to win the grand prize. The Power Play multiplier was 2X.

But don’t be fooled — that’s not what the winner will be taking home.

First, they’ll be met with two payment options: an estimated $558.1 million lump sum, or an annuitized prize worth all $1.08 billion.

Before winners even see a penny of their jackpot, the federal government withholds a mandatory 24% that goes to the IRS. The tax applies to prizes greater than $5,000.

In the case of the winning Powerball ticket, that’s about $133.9 million for the cash option and $259.2 million for the annuitized option. But taxes don’t end there.

Winning millions will also send you into the highest federal income tax bracket. In 2023, single filers will pay $174,238 plus 37% of the excess over $578,125, and married couples filing jointly will pay $186,601 plus 37% of the excess over $693,750.

That means you can expect about another 13% deduction.

You may also be on the hook for state taxes. Depending on where you bought your ticket, some states, like Florida, have no lottery income tax while others have top-income state tax brackets exceeding 10%.

Nevertheless, a multi-million prize is still more than enough for many players.

The Powerball jackpot eluded players for three months before it was finally hit on the 39th drawing. Powerball holds the current world record for the largest national lottery jackpot at $2.04 billion.

The top 10 Powerball jackpots in history are as follows:

1. $2.04 Billion – Nov. 7, 2022 – CA
2. $1.586 Billion – Jan. 13, 2016 – CA, FL, TN
3. $1.08 Billion – July 19, 2023 – CA
4. $768.4 Million – March 27, 2019 – WI
4. $758.7 Million – Aug. 23, 2017 – MA
5. $754.6 Million – Feb. 6, 2023 – WA
6. $731.1 Million – Jan. 20, 2021 – MD
8. $699.8 Million – Oct. 4, 2021 – CA
9. $687.8 Million – Oct. 27, 2018 – IA, NY
10. $632.6 Million – Jan. 5, 2022 – CA, WI