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If you’re playing the billion-dollar Mega Millions tonight, then you’re likely also busy dreaming about what you will do with all that money. But just how much is the payout, how much will you take home, and how does it change after tax? Read on for more details.
How Much Would You Take Home if You Won the Jackpot?
Now let’s get into some more specifics about the jackpot itself. If the jackpot is $1 billion, just how much will you actually be taking home?
The $1 billion amount is what you would be paid total as an annuity. This means you wouldn’t be getting $1 billion dollars up front if you won. Instead, the winnings would be spread out over multimillion-dollar annual payments over 30 years, starting with one immediate payment. Each payment is 5 percent bigger than the previous one, to help protect against inflation.
If you take the lump-sum cash option, you’ll get a one-time, lump-sum payment. It won’t be $1 billion, but it will be equal to all the cash that’s in the Mega Millions jackpot prize pool, MegaMillions.com explains. Mega Millions currently estimates the cash option to be $565.6 million.
How Much Do You Win After Tax?
Unfortunately, all prizes are also subject to income taxes. Exactly how much is taken out depends on where you live, and whether you’re subject to a federal income tax only or a federal and state income tax (and in some cases, local taxes too.)
The best after-tax and payout calculator is available at USA Mega’s jackpot analysis page. The calculations are based on a $1 billion annuity or a $565.6 million cash lump sum.
Right off the bat, no matter where you are, you’ll lose 24 percent of your gross prize to federal income taxes.
If you’re taking 30 annual payments of $33.3 million, then you’ll lose a total of $8 million each time, taking home $25.3 million each year after federal taxes. If you take a lump sum, you’ll lose a total of $135 million up front, for a total of $429.856 million after just federal taxes.
Here are your annuity and lump sum takeovers per state, as calculated and presented by USA Mega.
- Arizona: 5 percent tax: $23.6 million a year or $401.576 million cash
- Arkansas: 7 percent state tax: $23 million per year or $390.264 million cash
- California: No state tax
- Colorado: 4 percent state tax: $24 million per year or $407.232 million cash
- Connecticut: 6.99 percent state tax: $23,003,333 per year or $390.320 million cash
- Delaware: No state tax
- Florida: No state tax
- Georgia: 6 percent tax: $23.333 million per year or $395.920 million cash
- Idaho: 7.4 percent tax: $23,683,333 million per year or $401.858 million cash
- Indiana: 3.4 percent state tax: $24.2 million per year or $410.625 million cash
- Iowa: 5 percent tax: $23.6 million a year or $401.576 million cash
- Kansas: 5 percent tax: $23.6 million a year or $401.576 million cash
- Kentucky: 5 percent tax: $23.6 million a year or $401.576 million cash
- Louisiana: 5 percent tax: $23.6 million a year or $401.576 million cash
- Maine: 5 percent tax: $23.6 million a year or $401.576 million cash
- Maryland: 8.75 percent state tax: $22.416 million per year or $380.366 million cash
- Massachusetts: 5 percent tax: $23.6 million a year or $401.576 million cash
- Michigan: 4.25 percent tax: $23.916 million a year or $405.818 million cash
- Minnesota: 7.25 percent state tax: $23.916 million a year or $388.850 million cash
- Missouri: 4 percent state tax: $24 million per year or $407.232 million cash
- Montana: 6.9 percent tax: $23.033 million a year or $390.829 million cash
- Nebraska: 5 percent tax: $23.6 million a year or $401.576 million cash
- New Hampshire: No state tax
- New Jersey: 8 percent state tax: $22.666 million a year or $384.608 million cash
- New Mexico: 6 percent tax: $23.333 million per year or $395.920 million cash
- New York: 8.82 percent tax: $22.393 million per year or $379.970 million cash
- North Carolina: 5.499 percent tax: $23.500 million a year or $398.753 million cash
- North Dakota: 2.9 percent tax: $24.366 million a year or $413.453 million cash
- Ohio: 4 percent state tax: $24 million per year or $407.232 million cash
- Oklahoma: 4 percent state tax: $24 million per year or $407.232 million cash
- Oregon: 8 percent state tax: $22.666 million a year or $384.608 million cash
- Pennsylvania: 3.07 percent tax: $24.310 million a year or $412.492 million cash
- Rhode Island: 5.99 percent tax: $23.336 million a year or $395.976 million cash
- South Carolina: 7 percent state tax: $23 million a year or $390.264 million cash
- South Dakota: no state taxes
- Tennessee: No state taxes
- Texas: No state taxes
- U.S. Virgin Islands: Not known
- Vermont: 6 percent tax: $23.333 million per year or $395.920 million cash
- Virginia: 4 percent state tax: $24 million per year or $407.232 million cash
- Washington: No state tax
- Washington D.C.: 8.5 percent tax: $22.5 million a year or $381.780 million cash
- West Virginia: 6.5 percent tax: $23.166 million a year or $393.092 million cash
- Wisconsin: 7.65 percent tax: $22.783 million a year or $386.587 million cash
- Wyoming: No state tax
Note: The numbers above are all averages, and other factors might affect the final number.
Remember also that if more than one person wins the lottery, you’ll be splitting the prize, which will make what you take home even less.
Mega Millions Tax Calculator
If you’d like a more accurate number, you can enter your information into a Mega Millions tax calculator. There’s one at AfterLotto here. Just enter your state, estimated jackpot value, and you’ll get after-taxes estimates for lump sums and annuity.
The Basics: Here’s What You Win for Matching Different Numbers
The big payout for Mega Millions is estimated to be $1 billion if someone wins the jackpot. Of course, the total will be less after taxes. If more than one person wins the whole thing, then the prize will be split among the winners.
But there are other prizes you can win besides the big jackpot, according to Mega Millions’ rules which you can read here. In order to win the jackpot, you’d need to match all five white balls and the yellow Mega ball.
- If you match all five white numbers only, you’ll win $1 million (and more if you’re using a Mega plier option.)
- If you match 4 white and the yellow, you’ll win $10,000.
- If you match 4 white only, you’ll win $500.
- If you match 3 white and 1 yellow, you’ll win $200.
- If you match 3 white only or if you match 2 white and 1 yellow, you’ll win $10.
- If you match a yellow ball and a white ball during tonight’s drawing, then you will walk away with $4. That’s enough to buy yourself two more tickets for $2 each in the next jackpot. But if you only match two white balls and <em>don’t </em>match the yellow ball, you won’t win anything.
- If you match one yellow ball (which is the last number drawn), then you’ll win $2. But if you only match one white number, then you also won’t win anything tonight.
A lot of people match two of the white balls or just one white ball and get excited, thinking they won something. Sadly, matching just one or two white balls won’t win you anything.
The Megaplier ball will indicate if the non-jackpot prizes are being increased 2X, 3X, 4X, or 5X.