Getty What is the Mega Millions payout ofter taxes.
If you’re playing the $865 million Mega Millions lottery on January 19, then you’re likely wondering just how much money you’ll ultimately take home if you win. Unfortunately, if you do win the jackpot you won’t be taking home $865 million — but you’ll still be taking home a lot. The exact amount will vary depending on where you live depending on state income taxes. Here is how much the payout will be tonight by state and how much you would actually take home after taxes.
How Much Would You Take Home if You Won $865 Million?
If the jackpot is $865 million, just how much will you actually be taking home?
The $865 million is the total amount you would be paid if you took the yearly option before taxes. You won’t be paid $865 million dollars upfront if you win. Instead, the winnings are spread out over 30 multimillion-dollar annual payments for 29 years, starting with one immediate payment. Each year’s payment is 5% bigger than the previous to help protect against inflation.
If you take the lump-sum cash option instead, you’ll get a one-time payment equal to all the cash that’s in the jackpot prize pool. Mega Millions currently estimates the cash option to be $638.8 million (before tax.)
How Much Do You Win After Tax Per State?
How much you will take home is also subject to income tax. 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.)
Lottery Critic also offers a Mega Millions Payout Calculator that is helpful in determining what your winnings will actually be. To use this calculator, you’ll need to enter the jackpot amount and then the state that you are in.
An after-tax calculator is available at USA Mega’s jackpot analysis page. The calculations are based on an $865 million annuity or a $638.8 million lump sum.
To start, everyone will lose 24% via federal taxes. If you’re taking 30 average annual payments of $28.83 million, then you’ll lose about $6.9 million each time, plus an additional $3.7 million in federal taxes yearly, leaving you with a take-home amount of about $18.2 million each year after federal taxes. (This doesn’t account for yearly changes due to inflation.) So if a state doesn’t have any state income tax, this is the approximate yearly take-home.
If you take a lump sum, you’ll lose a total of $153.312 million upfront plus another $83 million from additional federal taxes, for a total of about $402.479 million after just federal taxes alone.
Here are your annuity (average per year) and average lump sum net payouts per state after taxes for the $865 million jackpot, as calculated and presented by USA Mega. Please note that the amounts below are not guaranteed, and might also not include local taxes if relevant. These are also averages per year, so they don’t indicate the increase that you will see each year due to inflation if taking a yearly sum.
- Arizona: 4.8% tax for in-state residents: $16.8 million a year or $504.5 million cash in a lump sum (6% tax for non-Arizona residents: $16.4 million a year or $364.151 million cash in a lump sum)
- Arkansas: 6.6% state tax: $16.297 million per year or $360.319 million cash lump sum
- California: No state tax on lottery winnings
- Colorado: 4% state tax (with final 4.63% due to additional state taxes): $16.865 million per year or $372.903 million cash in one lump sum
- Connecticut: 6.99% state tax: $16.185 million per year or $357.827 million cash in one lump sum
- Delaware: No state tax, but additional state taxes lead to a 6.6% tax rate: $16.297 million per year or $360.319 million cash lump sum
- Florida: No state tax
- Georgia: 5.75% tax: $16.543 million per year or $365.748 million cash in one lump sum
- Idaho: 6.925% tax: $16.2 million per year or $358.243 million cash in one lump sum
- Illinois: 4.95% state tax: $16.773 million per year or $370.859 million cash in one lump sum
- Indiana: 3.23% state tax: $17.269 million per year or $381.846 million cash in one lump sum
- Iowa: 5% tax (but additional taxes bring an 8.53% final rate): $15.741 million a year or $347.99 million cash in one lump sum
- Kansas: 5% tax (but additional taxes bring it to a 5.7% tax rate): $16.557 million a year or $366.068 million cash in one lump sum
- Kentucky: 5% tax: $16.759 million a year or $370.539 million cash in one lump sum
- Louisiana: 5% tax (but additional taxes bring it to a 6% final rate): $16.47 million a year or $364.151 million cash in a lump sum
- Maine: 5% tax (but additional taxes bring it to a 7.15% final tax): $16.139 million a year or $356.805 million cash in one lump sum
- Maryland: 8.95% state tax for in-state residents: $15.62 million per year or $345.307 million cash in one lump sum. (Note that there is an 8% state tax for non-Maryland residents: $15.894 million per year or $351.375 million lump sum.)
- Massachusetts: 5% tax: $16.759 million a year or $370.539 million cash in one lump sum
- Michigan: 4.25% tax: $16.975 million a year or $375.330 million cash in one lump sum
- Minnesota: 7.25% state tax: $15.36 million a year or $339.558 million cash in one lump sum
- Mississippi: 5% state tax: $16.759 million a year or $370.539 million cash in one lump sum
- Missouri: 4% state tax (but additional taxes bring it up to 5.4% tax): $16.643 million per year or $367.984 million cash in one lump sum
- Montana: 6.9% tax: $16.211 million a year or $358.402 million in one cash lump sum
- Nebraska: 5% tax (but other taxes bring it to 6.84%): $16.228 million a year or $358.786 million cash in one lump sum
- New Hampshire: No state tax on lottery prizes
- New Jersey: 8% state tax: $15.1 million per year or $333.808 million lump sum for one cash payment
- New Mexico: 6% tax: $16.47 million a year or $364.151 million cash in a lump sum
- New York: 8.82% tax: $15.6 million per year or $346.137 million cash in a lump sum
- North Carolina: 5.25% tax: $16.687 million a year or $368.942 million cash in a lump sum
- North Dakota: 2.9% tax: $17.364 million a year or $383.954 million cash in a lump sum
- Ohio: 4.797% state tax: $16.817 million per year or $371.836 million cash in a lump sum
- Oklahoma: 5% state tax: $16.759 million a year or $370.539 million cash in one lump sum
- Oregon: 8% state tax: $15.346 million per year or $339.238 million lump sum for one cash payment
- Pennsylvania: 3.07% tax: $17.315 million a year or $382.868 million cash in one lump payment
- Rhode Island: 5.99% tax: $16.473 million a year or $364.215 million cash in one lump payment
- South Carolina: 7% state tax: $16.182 million per year or $357.763 million cash
- South Dakota: no state taxes
- Tennessee: No state taxes
- Texas: No state taxes
- U.S. Virgin Islands: Not known
- Vermont: 6% tax (but additional taxes bring it to 8.75%): $15.678 million a year or $346.584 million cash in a lump sum
- Virginia: 4% state tax (but additional state taxes bring it to 5.75%): $16.543 million per year or $365.748 million cash in one lump sum
- Washington: No state tax
- Washington D.C.: 8.95% tax: $15.62 million a year or $345.307 million cash in one lump sum
- West Virginia: 6.5% tax: $16.326 million a year or $360.957 million cash in one lump sum
- Wisconsin: 7.65% tax: $15.995 million a year or $353.611 million cash in one lump sum
- Wyoming: No state tax
Note: The numbers above are all averages, and other factors (like the yearly 5% increase due to inflation) 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.
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