The Mega Millions jackpot prize rose to $522 million after no tickets matched all six numbers drawn on Tuesday night, but the winner will take home a much smaller purse after paying their taxes.
FILE PHOTO: The Mega Millions jackpot prize has crossed the half a billion dollar mark for the ... [+]
If a winner emerges in the next draw, they can choose between getting the $522 million prize spread across 30 annual payouts or a cash prize of $241.4 million—often the popular pick.
If chosen, the lump sum amount will drop to $183.5 million after a mandatory federal tax withholding of 24% is applied.
Depending on their taxable income, the winner could face a federal marginal rate as high as 37%, further slashing their winnings to $152.1 million.
If the winner chooses the installment route, their annual payments of $17.4 million would drop to around $11 million, if the 37% federal marginal rate is applied.
The winner may also face additional taxes from their state of residence, as some states like New York tax lottery winnings at 10.9%, while others like Texas, Florida, and California don’t.
The next Mega Millions draw is scheduled for Friday night.
The eventual winner of the Mega Millions jackpot prize will have to overcome astronomical odds of 1-in-302.6 million. This is even worse than the Powerball jackpot’s already poor odds of 1-in-292.2 million.
In March, a single ticket holder from New Jersey won a $1.13 billion Mega Millions jackpot—which at the time was 2024’s biggest lottery prize. The record, however, was quickly overhauled as a ticket buyer from Oregon was declared the winner of a Powerball jackpot worth $1.3 billion just a week later.