Per CNBC

The Powerball jackpot lottery drawing reached a whopping $1 billion. The game's operator says that higher interest rates allowed it to fund larger annuity prizes, but its lump sum would still be based on ticket sales.

The advertised $1 billion would be if winners decided to receive their annuity spread over three decades, but if they choose to get an upfront one-time cash payment, the pretax amount would be $497.3 million.

If winners choose the one-time cash payment, they would be subjected to a 24% federal tax withholding, reducing the amount by $119.4 million. Another 13% or $64.7 million would be due to the IRS leaving the winner with just $313.2 million.

If the winner lives in a state with a top tax rate of at least 10% (some states charge more), winners could walk away with just $281.9 million.

If the winner chooses to receive the $1 billion as an annuity, they would have to accept it over three decades. If this option is selected, the IRS will get at least $370,000,000.