Topline
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.
Key Facts
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.
Surprsing Fact
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.
What To Watch For
The next Mega Millions drawing is scheduled for Friday at 11 p.m. ET.
Big Number
$2.04 Billion. That is the size of the largest lottery jackpot in U.S. history, won by a Powerball ticket buyer from California last year. The largest Mega Millions jackpot claimed by a single ticket holder is $1.53 billion.
Further Reading
