Mega Millions Jackpot Tax

Here’s how much taxes you will owe if you win the current Mega Millions jackpot. You can find out tax payments for both annuity and cash lump sum options.

To use the calculator, select your filing status and state. The calculator will display the taxes owed and the net jackpot (what you take home after taxes).

Notes

• The cash lump sum payment is the available jackpot prize pool at the time of the draw.
• The annuity option is the advertised jackpot, and is the cash lump sum plus interest gained over a period of 29 years.
• The annuity option is paid in 30 installments over 29 years.
• The first annuity installment is paid when the jackpot is claimed. A year later, the next payment will arrive, and so on until all 30 have been paid.
• Each annuity payment increases by 5% from the previous year.
• The highest federal tax bracket of 37% is assumed for this example because Mega Millions jackpot winners will immediately fall into this category.
• We assume single state residence only and do not consider non-state resident tax. In the situation when the winner resides in a different state than the one where the winnings were registered, additional state taxes may be added.
• This calculator is only intended to provide an estimate of taxes. We do not take responsibility for any inaccuracies or omissions, nor is this calculator intended to represent tax advice.
• Consult with a professional tax advisor and accountant to avoid any unplanned tax bills or other surprises.
• During the course of the annuity payment schedule, there may be changes to the federal and state tax rate.
• The lottery automatically withholds 24% of the jackpot payment for federal taxes. When you file your next return after winning, you will be responsible for the difference between the 24% tax and the total amount you owe to the IRS.
• In some states, the lottery also withholds a percentage of the payment for state taxes.