Mega Millions jackpot hits $800M: Why you'd take home far less
(NEXSTAR) — For the second time this year, a near-record lottery jackpot is up for grabs, though the expected tax bill may leave the winner feeling a little less rich.
No Mega Millions ticket was able to match the winning numbers drawn on Halloween — 2, 24, 52, 66, 68, and gold Mega Ball 9 — pushing the jackpot to an estimated $800 million ahead of Tuesday's drawing.
Without any growth, the jackpot and its cash value of $371.7 million will rank as the ninth-largest in Mega Millions history:
- $1.602 billion: Aug. 8, 2023; Florida
- $1.537 billion: Oct. 23, 2018; South Carolina
- $1.348 billion: Jan. 13, 2023; Maine
- $1.337 billion: July 29, 2022; Illinois
- $1.269 billion: Dec. 27, 2024; California
- $1.128 billion: March 26, 2024; New Jersey
- $1.050 billion: Jan. 22, 2021; Michigan
- $810 million: Sept. 10, 2024; Texas
- Est. $800 million: Current
- $656 million: Mar. 30, 2012; Illinois, Kansas, and Maryland
It's also the 16th-largest jackpot across Powerball and Mega Millions, just $10 million behind the September 2024 prize won in Texas.
Should the jackpot be won in the next four weeks, it would mark the first November grand prize since 2016, according to Mega Millions officials. It would also easily be the largest ever won in the month, with the current record holder being a $324 million prize won in New York in 2014.
Depending on where the winning ticket is sold and the payout option the winner selects, they may take home less than that.
Federal and state taxes (except in jurisdictions without a state lottery tax) will diminish the jackpot payout, regardless of whether a winner selects the cash prize or the annuitized option of 30 annual payments.
Should you win, you'll immediately owe 24% to the IRS. On top of that, you'll owe up to 37% in a federal marginal tax rate.
That would leave you with roughly $234.2 million with the cash prize or $505.3 million after all the annuitized payments have been dispersed, an analysis by USA Mega found. That cuts your payout by about $137.5 million or $294.7 million of the advertised prizes, respectively.
With the exception of a handful of states, you would also owe a state lottery tax. After accounting for that, you would, at best, take home about $224.9 million in cash or $485.3 million over the life of your annuitized payments. That nearly cuts your prize in half.
The interactive map below shows how much of the jackpot you would lose to withholdings in each state, as well as what your total estimated payout would be, per USA Mega's analysis.
If you can overcome the odds (which did improve when Mega Millions was overhauled earlier this year) and win the jackpot on Tuesday, experts recommend getting your affairs in order before coming forward to collect the prize.
That will include deciding between the smaller cash option or the annuitized payout of a one-time payment, followed by 29 annual checks that increase by 5% each year. Which is better for you may vary.
The next Mega Millions drawing is set for 11 p.m. ET on Tuesday, followed by a drawing on Friday at the same time. Tickets are $5 each and are sold in 45 states, the District of Columbia, and the U.S. Virgin Islands.