The Mega Millions jackpot rose to $792 million—the second biggest jackpot prize of the year so far—after no tickets matched all six numbers drawn on Tuesday night, although the winner will take home a much smaller payout after paying their taxes.
The Mega Millions prize is closing in on the biggest jackpot of the year so far.
If a winner is found in the next draw, they can choose between receiving the $792 million jackpot spread over 30 annual payments or a lump sum cash prize of $381.8 million—often the popular choice.
The lump sum payout will drop to $290.2 million after a mandatory federal tax withholding of 24% is applied.
The winner could then face a federal marginal rate as high as 37%, depending on their taxable income, further slashing their winnings to $240.5 million.
If the winner picks the installment route, their annual payments of $26.4 million would drop to $16.63 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.
1-in-302.6 million. Those are the over-the-top odds that a ticket buyer has to overcome to win the Mega Millions jackpot. This is even worse than the Powerball jackpot’s already poor odds of 1-in-292.2 million.
On Monday night, the Powerball prize rose once again after no tickets matched all six numbers drawn. The biggest jackpot of the year so far has been the $842.4 million Powerball prize won by a single ticket holder from Michigan on New Year’s Day.
The next drawing for the Mega Millions jackpot is scheduled for Friday night. Powerball will hold a drawing for a $559 million jackpot on Wednesday night.
Powerball Jackpot Rises To $559 Million—Here’s How Much The Winner Will Take Home After Taxes (Forbes)