Mega Millions Nears $750 Million—Here’s What The Winner Could Take Home
As the jackpot grows, the winner's take-home amount becomes a topic of interest.
1Mega Millions Jackpot Hits Record High
The Mega Millions jackpot has reached $743 million, making it the largest lottery prize of the year so far. However, the winner's take-home amount will be much lower due to tax deductions.
2Winner's Options
The winner can choose to receive $743 million in 30 annual installments or opt for a lump sum payment of $323.4 million. Most winners prefer the lump sum option.
3Tax Deductions
If the lump sum is chosen, 24% will be withheld for federal taxes, reducing the amount to $245.8 million. The winner's marginal tax rate could be as high as 37%, further reducing the winnings to $203.7 million.
4State Taxes
Depending on the winner's state of residence, additional taxes may apply. For example, New York taxes lottery winnings at 10.9%, while states like Texas, Florida, and California do not tax lottery winnings.
5Odds of Winning
The odds of winning the Mega Millions jackpot are 1 in 290.4 million. This is slightly better than the Powerball jackpot's odds of 1 in 292.2 million.
6Next Draw
The next Mega Millions draw will take place on Friday night. Meanwhile, the Powerball jackpot has risen to $567 million, with its next draw scheduled for Wednesday night.