Mega Millions Jackpot Hits $ 607 Million – Here is what the Winner would Take Home after Taxes

The Mega Millions-jackpot is as much as $607 million after no profitable tickets had been drawn Tuesday night time, making the prize the eighth-largest in the lottery’s historical past, although a fortunate winner dealing with one in 302-million-odds would take house lower than half that quantity after paying required taxes.

KEY FACTS

  • A ticket holder matching all 5 white balls and one “megaball” for the grand prize can select between a payout over 30 annual installments or a one-time lump sum of $286.9 million.
  • A compulsory 24% federal tax withholding would cut back the lump sum to $218 million, and a federal marginal price as excessive as 37% relying on the winner’s taxable-revenue and different tax deductions may lower the winnings right down to $180.7 million.
  • If the winner chooses the much less well-liked annual installment choice, the 37% federal marginal price would cut back funds to a median of about $12.7 million per 12 months.
  • Lottery winnings are taxed in some states, with charges as little as 2.5% in Arizona ($7.1 million) to as excessive as 10.9% in New York ($31.2 million), although different states like California or Texas don’t tax winnings.

BIG NUMBER

1 million. That’s what number of non-jackpot profitable tickets had been drawn for Tuesday’s drawing, together with one ticket that matched all 5 white balls for a $1 million prize. There have been greater than 15 million profitable tickets for non-jackpot prizes since the jackpot was final received in December.

WHAT TO WATCH FOR

The following Mega Millions drawing shall be held Friday at 11 p.m. EST.

TANGENT

Powerball will maintain its drawing for a $412 million jackpot afterward Wednesday. That prize consists of an choice for an upfront $195.5 million lump sum, which would be decreased to $148.5 million after a 24% federal tax withholding or to $123.1 million after a 37% federal marginal price.

KEY BACKGROUND

The Mega Millions and Powerball lotteries modified their guidelines in 2017 and elevated the pool of white balls to select from. That made it tougher to win the grand prize for both lottery, leading to the largest lottery prizes in U.S. historical past being received over the final eight years. The Mega Millions jackpot has eclipsed $1 billion 5 instances over the final six years, together with a $1.6 billion prize received late final 12 months.

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