The Mega Millions jackpot has soared to $900 million ahead of the next drawing, marking one of the largest prizes in U.S. lottery history. If a lucky player matches all the numbers, they’ll face big decisions—and big taxes—before taking home their winnings.
Historic Jackpot Grows—How Much Would You Actually Keep?
The winner of the $900 million grand prize can choose between two options: the full amount paid in 30 annual installments or a single lump-sum cash payout of $415.3 million. The majority of jackpot winners select the lump sum, which is immediately reduced by a mandatory federal tax withholding of 24%, leaving about $315.6 million.
But the tax story doesn’t stop there. Depending on the winner’s overall income, the actual tax rate can climb as high as 37%. After accounting for the highest federal marginal tax rate, the winner would take home around $261.7 million—less than a third of the headline jackpot. State taxes may further reduce these winnings, especially in states with high lottery taxes like New York, while other states impose little or no tax on lottery wins.
Annuity Option and State Taxes
Opting for annuity payments would allow the winner to receive the full $900 million over 30 years, with annual sums that could help manage long-term financial security and soften tax bills each year. Still, most Americans gravitate toward the immediate lump sum, even though that means a much smaller final amount after all taxes and deductions.
The Odds, The Dreams, and The Deadlines
The next Mega Millions drawing is set for Tuesday, November 11, so ticket holders are racing to buy a chance at transforming their fortunes. The odds of hitting the jackpot remain astronomically long—roughly 1 in 302.6 million—but the dream persists.
For anyone entering the running, it’s crucial to consider not just the excitement, but the practical realities of what a Mega Millions win will actually mean for your bank account. Careful planning—and expert financial guidance—will be needed if those magic numbers come up.