A single ticket buyer from New Jersey won the $1.13 billion Mega Millions jackpot—the biggest lottery prize of the year so far—although they will take home a significantly smaller amount after paying their taxes.
A supermarket displays a Mega Million lottery sign in Miami, Florida.
Mega Millions said the ticket sold in New Jersey was the only one to match all six numbers drawn on Tuesday night—7, 11, 22, 29 and 38, and the gold Mega Ball 4.|
The winner will now get to pick between receiving the $1.13 billion payout spread across 30 annual payments in 29 years or a lump sum cash prize of $537.5 million—usually the popular pick among winners.
The cash prize will drop to $408.5 million after a mandatory federal tax withholding of 24% is deducted.
Depending on their taxable income, the winner will then face a federal marginal rate as high as 37%, which would further slash their winnings to $338.62 million.
If the winner chooses the installment route, their annual payments of $37.6 million would drop to $23.7 million, if the 37% federal marginal rate is applied.
The winner’s state of residence, New Jersey, also withholds 8% of all lottery winnings above $500,000.
The lucky ticket holder had to overcome abysmal odds of 1-in-302.6 million to win the Mega Millions jackpot. These odds are even worse than the Powerball jackpot’s already terrible odds of 1-in-292.2 million.
$1.602 billion. That is the biggest Mega Millions jackpot in history, won in August last year by a ticket buyer from Florida. Tuesday’s prize is the fifth largest in the game’s history and its sixth billion-plus dollar prize.
On Wednesday night, the Powerball lottery will hold a draw for a $865 million jackpot. If a winner is found they will take home the biggest Powerball prize and second-biggest overall lottery prize of the year so far.
Powerball Jackpot Hits $865 Million—Here’s How Much A Winner Could Take Home After Taxes (Forbes)