Mega Millions jackpot is $820 million—after-tax payout in every state

You may have missed out on Powerball’s $1.08 billion jackpot prize, but there’s still $820 million up for grabs with Mega Millions’ next draw Tuesday night at 11 p.m. ET.

In the highly unlikely case that you win — the odds are 1 in 302.5 million — you’ll have the choice of two two payout options. You can take either the full jackpot amount as an annuity spread out over 29 years, or an upfront lump sum worth just over half the jackpot amount.

But then there’s taxes. For either payout option, you’ll pay an automatic 24% federal withholding tax on your winnings. However, winning millions of dollars will put you in the top bracket, which levies a 37% tax for income of $578,126 or more. That means you’d almost certainly pay another 13% in taxes when you file a 2023 tax return.

You also have to pay state taxes, which vary based on where you live. Some states don’t tax lottery winnings, while those that do have rates ranging from 2.9% to 10.9%.

Eight states don’t charge income tax on lottery winnings: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

Assuming a top federal tax rate of 37%, here’s the after-tax amount you’d take home in each participating state, as well as Washington, D.C., for both the lump sum and annuity option, according to usamega.com.

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