Powerball jackpot reaches $1 billion

Get your wallets out to buy lottery tickets, Pennsylvania — because the Powerball jackpot is up to $1 billion.

If someone wins, it would be the eighth-largest jackpot in Powerball history.

The drawing will take place at 11 p.m. Wednesday. The odds of winning are 1 in 292.2 million, per the Powerball website.

While valued at $1 billion, the actual cash value of the lump sum prize is estimated to be $433.1 million, according to Powerball.

The winner can either choose to receive the lump sum of $433.1 million or receive the full jackpot in 30 annual payments.

Those who choose the lump sum will be hit with a 24% federal withholding tax, and after that, the winner would likely find themself in the highest federal tax bracket, and a 37% marginal tax rate would bring the prize down more, Forbes reported.

If a winner instead chose the annual payments, they would grow by 5% each year, the Forbes’ winnings breakdown said.

In Pennsylvania, cash lottery winnings are taxed at a flat rate of 3.07%, according to the state’s Department of Revenue.

On Monday night, no one won the jackpot when it was valued at $905 million, which is why it has increased to $1 billion for Wednesday night.