The Mega Millions jackpot has reached a staggering $575 million, capturing nationwide attention as millions of hopeful players rush to buy their tickets. The winning numbers drawn on Tuesday night were 17, 26, 33, 45, 56, and Mega Ball 19, but no ticket matched them all, allowing the prize to grow even larger. Read More
For whoever hits the jackpot next, the Mega Millions offers two payout choices — the full prize spread across 30 annual payments, or a one-time lump sum cash option. The majority of winners typically choose the lump sum, which for this jackpot is valued at $264.6 million before taxes.
However, the advertised jackpot figure is not what the winner will actually receive. The moment the cash option is selected, the amount becomes subject to federal income taxes, which significantly reduce the final payout. Federal law requires an automatic 24% withholding on all large lottery prizes.
That initial deduction would cut the lump sum from $264.6 million down to about $201.1 million immediately. But the winner’s tax bill wouldn’t stop there. Once the total income is calculated, they could fall into the highest federal tax bracket of 37%, meaning a substantial portion of the remaining money would still go to the IRS.
After applying the full federal tax rate, the lucky winner’s net payout could drop further to roughly $166.7 million, leaving them with only about 63% of the original lump sum. While this is still a life-changing amount of money, it highlights how much of a lottery prize can be consumed by taxes before reaching the winner’s hands.
If the winner chooses the annuity option, the entire $575 million would be divided into 30 annual payments that gradually increase over time. Each yearly installment would be worth around $19.16 million before taxes.
After federal taxes are applied to each yearly payment, the winner could end up receiving around $12.1 million per year, depending on their filing status and other income sources. The annuity option can provide long-term financial security, but many players prefer the flexibility of the lump-sum payment, even after taxes.
In addition to federal taxes, winners must also consider state and local taxes, which vary widely across the U.S. For example, New York imposes one of the highest state taxes on lottery winnings at 10.9%, while states like Florida, Texas, and California do not tax lottery prizes at all. This difference can mean millions of dollars in savings depending on where the winner lives.
The odds of winning the Mega Millions jackpot remain extraordinarily slim — about 1 in 290.4 million. Still, these odds are slightly better than in previous years, when the chance stood at 1 in 302.5 million, thanks to game changes that increased smaller prize opportunities.
The next Mega Millions drawing is scheduled for Friday night, offering another chance at the massive jackpot. Meanwhile, the Powerball prize currently stands at around $223 million, with its next drawing set for Wednesday evening, giving players multiple big-ticket opportunities this week.
Recent lottery history has been filled with monumental wins. Just last month, two Powerball ticket holders from Missouri and Texas split a record-breaking $1.78 billion jackpot, the second-largest prize ever awarded in U.S. lottery history. That win remains the biggest of the year so far.
As the Mega Millions jackpot continues to grow, it has now surpassed the $526.5 million Powerball prize won by a California player earlier this year. The largest Mega Millions win so far was $349 million, claimed by an Illinois resident in March — a reminder that while the odds are long, lightning can strike for someone lucky enough to beat them.
