Mega Millions Payout and Tax Calculator

Winning the Mega Millions top prize is no easy feat, and it doesn't mean you'll be taking home the entire jackpot. Even if you beat the odds and match the draw perfectly, federal and state laws require that a sizable portion of your winnings go to taxes. But, how much? You can compute for that with our tool below.

Just input the advertised jackpot, select your state, and our Mega Millions payout calculator will do all the work for you. You'll see how much tax you'll have to pay for both the lump sum and annuity options, so you can compare the two. You'll also find a payout table for the annuity option for a more detailed breakdown.

Note that payouts are approximations dependent on how the winner spends their money. For example, large charitable donations means less tax.

Lump Sum/Cash Option Calculator

Gross Payout (~61% of the jackpot)$610,000
Federal Taxes Paid (24%)$146,400
State Taxes Paid ( 5% )$30,500
Net Payout (after taxes)$433,100

Annuity Calculator (Totals)

Gross Payout$1,000,000
Federal Taxes Paid (24%)$240,000
State Taxes Paid ( 5% )$50,000
Net Payout (after taxes)$710,000

Annuity Calculator (Per Year)

YearGross PayoutFederal TaxesState TaxesNet Payout

Our Mega Millions Calculator Explained

As you might already know, when a player wins the Mega Millions jackpot, they’ll have to choose between a single lump sum or 30 annual payments to claim their prize.

Choosing the lump sum, also known as the cash option, reduces the jackpot size to approximately 61% of the original amount, but awards it all at once to the player. On the other hand, the annuity option awards the winner with the full amount or 100% of the jackpot – starting with one initial payment, followed by annual payments over the next 29 years.

Since the lump sum and annuity option award different payouts, it only follows that your tax liability (federal tax + state tax) will also be different for both.

What our Mega Millions calculator provides is a quick overview of the gross and net (after taxes) winnings you’d receive for both options – allowing you to make a more informed decision when comparing the two.

Finally as an added feature, our tool also breaks down the annuity option into a handy payout schedule so you know how much you’ll receive each year.

Glossary of Terms

Advertised Jackpot: The total payment a winner would receive should they choose the annuity option for any given drawing. This number is based on the funds in the prize pool (including all prior rollovers), expected ticket sales for the next drawing, and current market interest rates.

Annuity Payout Option:┬áPayment scheme wherein prizes are awarded starting with 1 immediate payment followed by 29 yearly payments. These payments are graduated – meaning they increase by 5% each year to account for inflation. The total value of all payments is equivalent to 100% of the advertised jackpot.

Lump Sum Option: Payment scheme wherein a one-time payment is immediately awarded to the winner. The total value is approximately 61% of the advertised jackpot. This is also known as the cash option, and is the more popular choice among jackpot winners.

Federal Taxes: Income tax withheld by the US government, including income from lottery prize money. This can range from 24% to 37% of your winnings.

State Taxes: Additional tax withheld, dependent on the state. This varies across states, and can range from 0% to more than 8%.

Tax Liability: The taxes you will have to pay in order to receive your prize. This is computed as federal taxes + state taxes. Please note that in some cases, you might have to pay additional taxes.

Gross Payout: The total prize awarded to a winner before federal and state taxes are applied.

Net Payout: The remaining prize awarded to a winner after federal and state taxes are applied.