The Mega Millions jackpot is now up to $800 million after lottery players around the U.S. failed to produce a winning ticket, which will bring the winner hundreds of millions of dollars—though less than half the winning total—after taxes come into play.
The jackpot reached $800 million after Friday night's drawing did not produce a winning ticket. ... [+]
A player matching all six numbers during next Tuesday’s drawing will have the option of receiving $800 million in prize money provided through 30 annual payouts, or a $401.8 million cash option.
A winner who chooses the $26.6 million in annual payouts will receive $16.8 million per year after the 24% and 37% federal taxes are applied.
The $401.8 million lump sum amount will be cut down to $305.4 million after a 24% federal tax is factored in.
The winner’s taxable income will further shave down their winnings and could reach as high as 37% in additional federal taxes, dropping the lump sum to $253.2 million.
State taxes could also apply depending on the winner’s place of residence, with states like New York charging a 10.9% tax, while states such as California, Florida and Texas leave winners’ earnings untouched.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
There have only been six jackpots higher than the $800 million grand prize, all of which were over $1 billion, according to Mega Millions.
The Mega Millions jackpot was last won in June, when a winner in Illinois secured the $552 million grand prize. Since then, 57 second-tier prizes totaling $1 million or more were won across 25 different states, Mega Millions reported, noting there were nearly 1.7 million winning tickets in the Sept. 6 drawing (winning tickets can supply anywhere from $2 to $1 million). The largest jackpot winning ticket this year was $1.1 billion, with the unclaimed winning ticket purchased in New Jersey.
Mega Millions Jackpot Jumps To $681 Million—Here’s How Much A Winner Could Take Home After Taxes (Forbes)