Calculate your Mega Millions payout after taxes. Compare lump sum vs annuity, see federal and state taxes, and get a full payout schedule. Make the best financial decision on your lottery winnings.
Annual growth rate for annuity payments (typically 5%)
Typically 52% for Mega Millions
Winning the Mega Millions jackpot is a rare event that only occurs with odds of approximately 1 in 302.6 million. However, if you do find yourself as a fortunate winner, this calculator is designed to help you understand exactly how much money you will receive after federal and state taxes are deducted. We’ll compare the two payout options available to Mega Millions winners: the lump sum cash payout and the annuity option which pays out increasing annual payments over a 30 year period.
By showing you the real prize money that you’ll be able to keep after all applicable taxes are paid, we can help you make an informed decision about which payout option works best for your unique financial situation.
🎉 Congrats! If you haven’t won yet, good luck! 🍀
The Mega Millions Payout refers to the way that you collect your winnings from a Mega Millions jackpot. There are two options: the lump sum cash payout and the annuity option which pays out increasing annual payments over a 30 year period.
Essentially the annuity option entitles you to 100% of the advertised jackpot, whereas the lump sum payment is the cash value of the amount of money it takes to fund the 30 year annuity payments.
Lump sum payout amount is typically around 52% of the total advertised jackpot amount. After federal and state taxes are paid, lump sum winners typically walk away with around 50% of the lump sum payout amount, or 26% of the original jackpot amount.
Lump sum payout gives winners immediate access to all of their money and they can invest or use the money however they’d like, but it also puts the onus on them to manage their money wisely so that it lasts a long time and has the ability to grow through investment.
The annuity payout option entitles you to 100% of the advertised jackpot amount. The money is paid out in 30 equal annual payments with each payment increasing by 5% over the previous year’s payment.
The reason that annuity payments are increased by 5% each year is to help protect winners from the ravages of inflation over time. However, each individual payment is also subject to federal and state taxes in the year that it’s received.
The table below will help you compare the first payment amount to the 30th year payment amount, as well as see how each payment grows over the course of 30 years and how taxes are calculated for each payment.
The calculator will display a detailed comparison table that includes:
While this calculator is designed to provide estimates of actual take home pay after applicable taxes for both the Mega Millions lump sum cash option and the annuity payout option, it’s important to note that actual tax liability may vary based on your individual tax situation and various other factors including, but not limited to:
Always consult with qualified tax professionals, financial advisors, and legal counsel before making financial decisions or signing any legally binding documents. This calculator is intended for informational and entertainment purposes only and should not be used as the sole basis for financial decision-making.
If you opt for the lump sum cash payout, you receive approximately 52% of the advertised jackpot amount before taxes. After federal and state taxes, you’ll typically take home about 26% – 30% of the original jackpot amount.
Federal tax withholding is 24%, but winners are also responsible for additional taxes which can range from 0% to 37% (totaling up to 61%) depending on their individual income tax bracket. State taxes can range from 0% to over 10% depending on where you live and file taxes.
That depends on your individual financial circumstances, as well as your investment savvy and spending habits. With the annuity payout option, you receive more money in total, but have less flexibility with the money and access to it.
With the lump sum payout option, you have immediate access to all of your winnings and can invest or use the money however you’d like, but it also puts the onus on you to manage your money wisely so that it lasts a long time and has the ability to grow through investment.
The annuity payments are paid over 30 years with an initial payout that increases by 5% each year. Federal and state taxes are paid on each individual payout amount in the year that the payment is received.
States without an income tax (and therefore don’t tax lottery winnings) include: Alaska, California, Delaware, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
