Mega Millions Payout for $1 Billion Jackpot: How Much You’ll Win After Tax

Mega Millions

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If you’re playing the $1 billion Mega Millions lottery on January 22, then you’ll definitely want to know how much money you’ll take home after taxes if you win. This may not be the largest Mega Millions jackpot ever — that distinction goes to the $1.6 billion jackpot. But it will still make you a billionaire — at least in name only. If you do win the jackpot you won’t be taking home $1 billion. 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 $1 Billion?

If the jackpot is $1 billion, just how much will you actually be taking home?

The $1 billion is the total amount you would be paid if you took the yearly option before taxes. You won’t be paid a billion 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 $739.6 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 a total $1 billion annuity or a $739.6 million lump sum.

To start, everyone will lose 24% via federal taxes. If you’re taking 30 average annual payments of $33.3 million, then you’ll lose about $8 million each time, plus an additional $4.29 million in federal taxes yearly, leaving you with a take-home amount of about $21 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 $177.5 million upfront plus another $96 million from additional federal taxes, for a total of about $465.98 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 $1 billion jackpot, as calculated and presented by USA MegaPlease 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: $19.435 million a year or $430.48 million cash in a lump sum (6% tax for non-Arizona residents: $19.035 million a year or $421.607 million cash in a lump sum)
  • Arkansas: 6.6% state tax: $18.8 million per year or $465.98 million cash lump sum
  • California: No state tax on lottery winnings
  • Colorado: 4% state tax (with final 4.63% due to additional state taxes): $19.492 million per year or $431.74 million cash in one lump sum
  • Connecticut: 6.99% state tax: $18.705 million per year or $414.285 million cash in one lump sum
  • Delaware: No state tax, but additional state taxes lead to a 6.6% tax rate: $18.835 million per year or $417.170 million cash lump sum
  • Florida: No state tax
  • Georgia: 5.75% tax: $19.119 million per year or $423.456 million cash in one lump sum
  • Idaho: 6.925% tax: $18.727 million per year or $414.766 million cash in one lump sum
  • Illinois: 4.95% state tax: $19.385 million per year or $429.373 million cash in one lump sum
  • Indiana: 3.23% state tax: $19.959 million per year or $442.094 million cash in one lump sum
  • Iowa: 5% tax (but additional taxes bring an 8.53% final rate): $18.192 million a year or $402.896 million cash in one lump sum
  • Kansas: 5% tax (but additional taxes bring it to a 5.7% tax rate): $19.135 million a year or $423.826 million cash in one lump sum
  • Kentucky: 5% tax: $19.369 million a year or $429 million cash in one lump sum
  • Louisiana: 5% tax (but additional taxes bring it to a 6% final rate): $19.035 million a year or $421.607 million cash in a lump sum
  • Maine: 5% tax (but additional taxes bring it to a 7.15% final tax): $18.652 million a year or $413.102 million cash in one lump sum
  • Maryland: 8.95% state tax for in-state residents: $18.052 million per year or $399.789 million cash in one lump sum. (Note that there is an 8% state tax for non-Maryland residents: $18.369 million per year or $406.815 million lump sum.)
  • Massachusetts: 5% tax: $19.369 million a year or $429 million cash in one lump sum
  • Michigan: 4.25% tax: $19.619 million a year or $434.5 million cash in one lump sum
  • Minnesota: 7.25% state tax: $17.752 million a year or $393.133 million cash in one lump sum
  • Mississippi: 5% state tax: $19.369 million a year or $429 million cash in one lump sum
  • Missouri: 4% state tax (but additional taxes bring it up to 5.4% tax): $19.235 million per year or $426.045 million cash in one lump sum
  • Montana: 6.9% tax: $18.735 million a year or $414.951 million in one cash lump sum
  • Nebraska: 5% tax (but other taxes bring it to 6.84%): $18.755 million a year or $415.395 million cash in one lump sum
  • New Hampshire: No state tax on lottery prizes
  • New Jersey: 8% state tax: $21.035 million per year or $465.983 million lump sum for one cash payment
  • New Mexico: 6% tax: $19.035 million a year or $421.607 million cash in a lump sum
  • New York: 8.82% tax: $17.829 million per year or $394.834 million cash in a lump sum
  • North Carolina: 5.25% tax: $19.285 million a year or $427.154 million cash in a lump sum
  • North Dakota: 2.9% tax: $20.069 million a year or $444.535 million cash in a lump sum
  • Ohio: 4.797% state tax: $19.436 million per year or $430.505 million cash in a lump sum
  • Oklahoma: 5% state tax: $19.369 million a year or $429 million cash in one lump sum
  • Oregon: 8% state tax: $17.735 million per year or $392.763 million lump sum for one cash payment
  • Pennsylvania: 3.07% tax: $20 million a year or $443.278 million cash in one lump payment
  • Rhode Island: 5.99% tax: $19.039 million a year or $421.681 million cash in one lump payment
  • South Carolina: 7% state tax: $18.702 million per year or $414.211 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%): $18.119 million a year or $401.268 million cash in a lump sum
  • Virginia: 4% state tax (but additional state taxes bring it to 5.75%): $19.119 million per year or $423.456 million cash in one lump sum
  • Washington: No state tax
  • Washington D.C.: 8.95% tax: $18.052 million a year or $399.789 million cash in one lump sum
  • West Virginia: 6.5% tax: $18.869 million a year or $417.9 million cash in one lump sum
  • Wisconsin: 7.65% tax: $18.485 million a year or $409.404 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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