The January 2026 PowerBall Jackpot of R179 million, won on Tuesday this past week, amounts to the second largest in ITHUBA National Lottery history. It’s a life-changing amount of money that we all dream about winning. So, what actually happens next for the lucky ticket holder? And is it tax free?
Here’s the remarkable news, the January 2026 PowerBall Jackpot winner receives the entire R179 million into their bank account. That’s right, unlike many countries where lottery winnings are heavily taxed, South Africa treats such prizes as capital gains and therefore they receive a special exemption. Typically, only about half the lottery amount is paid to winners elsewhere in the world. But not South Africa …
JANUARY 2026 POWERBALL JACKPOT WINNER
However, before we get into the realm of tax, the January 2026 PowerBall jackpot winner first has to claim his/her winnings. There are certain requirements for this to be done correctly and timeously. Of course, the threat of some trying to create a fraudulent ticket with the winning lotto numbers is possible. So, ITHUBA needs to confirm the true identity of the winner.
According to the ITHUBA National Lottery website the January 2026 PowerBall Jackpot winner is still to come forward. If and when they do, they must:
- Be in possession of the winning ticket with the correct serial number and/or winning SMS/email confirmation.
- Be 18 years or older.
- Hold a valid proof of identity.
- Have a valid South African bank account (not older than three months).
- Winning tickets must be claimed within 365 days of the date of the draw or else the prize money will expire.
WHAT IF YOU TRY TO CLAIM IN-STORE?
Interestingly, there are plenty of limitations if you wish to claim lotto winnings at an in-store retailer instead of through your bank account. These are otherwise known as sales channels:
- Retail stores can only pay prizes up to R2 000.
- Winnings over R10 000 but less than R50 000 must be claimed at an Approved Prize Payment Centre (APPC).
- From there, all participating banks will pay up to R249 999 via EFT(except for African Bank which only pays up to R49 999).
- Anything higher than R250 000 must be claimed in-person at a national/regional ITHUBA office.
JANUARY 2026 POWERBALL JACKPOT WINNER
Interestingly, winners of R250 000 or more automatically receive trauma counselling and financial advice as part of ITHUBA’s free winner services package. And for very good reason. Because while the lottery winnings themselves aren’t taxed, there is still work to do through the South African Revenue Service (SARS) to get the lump sum declared as non-taxable income.
The source of such a large amount is going to draw questions from the tax man. Also, unlike American lotteries such as the Mega Millions, there is no option to receive annual/monthly payments over 30 years. The January 2026 PowerBall jackpot winner will receive his/her winnings as a single payment. Once confirmed, the winner receives the full R179 million into their chosen bank account within 72 hours.
AN OVERWHELMING AND DESTRUCTIVE EVENT
Sadly, as much it sounds like a dream-come-true scenario, the reality is being gifted such a large amount of money is potentially destructive for someone without financial knowhow. One third of lottery winners end up bankrupt within five years. They quit their jobs and fall into common pitfalls of overspending on luxury items and blessing friends and family with money, which is all taxed by SARS.
Winners simply underestimate the tax implications of what they do with their money after winning. For example, gifts of more than R100 000 per year to friends or family are taxed at 20%. Any even shrewd investments are taxable, barring annual exemptions, like tax-free Retirement Annuities (RAs). And any large purchase (houses, cars, boats) require appropriate tax declarations.
WORK BEGINS FOR JANUARY 2026 POWERBALL JACKPOT WINNER
Therefore, South Africa’s January 2026 PowerBall jackpot winner is faced with both extraordinary opportunity and significant responsibility. It’s now that they realise the real challenge isn’t winning the lottery; it’s now managing their winnings wisely.
