The Mega Millions jackpot rose to an estimated $910 million—the eighth largest in U.S. history—after no tickets matched all six numbers drawn on Tuesday night, although the winner of the prize will receive a far smaller payout after their tax bill.
A Mega Millions wagering slip is held in Cranberry Township, Pa.
If a winner emerges in the next draw, they will have the option to either choose a $910 million payout spread over 30 annual installments or a lump sum payment of $464.2 million—usually the more popular choice.
The lump sum payment will face a mandatory federal tax withholding of 24%, leaving the winner with $352.8 million.
Depending on their taxable income, the winner could face a federal marginal rate as high as 37%, which would drop their winnings to $292.4 million.
Under the installment route, the annual payments of around $30.33 million could drop as low as $19.1 million, if the 37% federal marginal rate is applied.
The amount the winner takes home will also be determined by their state’s policies, as some states like New York tax lottery winnings at 10.9%, while others like Texas, Florida and California don’t tax them at all.
The next draw is scheduled to take place on Friday evening.
The eventual winner of the Mega Millions jackpot will have to overcome astronomical odds of 1-in-302.6 million. The odds of winning the Powerball jackpot are only slightly better, at 1-in-292.2 million. In the past decade, both Mega Millions and Powerball have tweaked their formula to worsen a player’s odds to win the jackpot while driving up its dollar amount.