The information in this article is up to date for tax year 2024 (returns filed in 2025).
Winning the Mega Millions jackpot is a dream come true for many. The sheer excitement of those six magical numbers aligning can set you on a path to financial freedom. But wait—before you start dreaming of yachts and mansions, let’s unpack what you actually take home after taxes if you win the Mega Millions jackpot.
The Jackpot Amount: It’s Not Just Yours
When you see that enormous jackpot amount—often hundreds of millions of dollars—it’s hard not to fantasize about all the incredible things you could buy. However, the initial amount doesn’t tell the whole story. After winning the lottery, you have two options: take the lump sum or opt for monthly payments over 30 years.
The Lump Sum vs. Annuity Payments
The lump sum gives you a sizable sum upfront, but it’s less than the advertised jackpot. If the jackpot is $108 million, the lump sum will be around $53.8 million after the lottery takes its share. The annuity, on the other hand, pays out the full $108 million over time, but you’ll need to wait to get the complete amount.
Federal Taxes: The Big Slice of the Pie
Once you decide how you want your money, the next step involves Uncle Sam. The IRS requires lottery agencies to withhold 24% of winnings over $5,000 for federal taxes. Winning a mega jackpot means you’re in a higher tax bracket. When you file your 2024 tax return, you’ll likely pay up to 37% on most of your lottery winnings. Here are the 2024 tax brackets and how the federal tax rates work for each filing status.
2024 tax brackets: Single filers
| Tax rate | Taxable income | Taxes owed in April 2025 |
| 10% | $0 to $11,600 | 10% of taxable income |
| 12% | $11,601 to $47,150 | $1,160 plus 12% of the amount over $11,600 |
| 22% | $47,151 to $100,525 | $5,426 plus 22% of the amount over $47,150 |
| 24% | $100,526 to $191,950 | $17,168.50 plus 24% of the amount over $100,525 |
| 32% | $191,951 to $243,725 | $39,110.50 plus 32% of the amount over $191,950 |
| 35% | $243,726 to $609,350 | $55,678.50 plus 35% of the amount over $243,725 |
| 37% | $609,351 or more | $183,647.25 plus 37% of the amount over $609,350 |
2024 tax brackets: Head of Household
| Tax rate | Taxable income | Taxes owed in April 2025 |
| 10% | $0 to $16,550 | 10% of taxable income |
| 12% | $16,551 to $63,100 | $1,655 plus 12% of the amount over $16,500 |
| 22% | $63,101 to $100,500 | $7,241 plus 22% of the amount over $63,100 |
| 24% | $100,501 to $191,950 | $15,469 plus 24% of the amount over $100,500 |
| 32% | $191,951 to $243,700 | $37,417 plus 32% of the amount over $191,950 |
| 35% | $243,701 to $609,350 | $53,977 plus 35% of the amount over $243,700 |
| 37% | $609,350 or more | $181,954.50 plus 37% of the amount over $609,350 |
2024 tax brackets: Married filing jointly or Qualifying widow(er)
| Tax rate | Taxable income | Taxes owed in April 2025 |
| 10% | $0 to $23,200 | 10% of taxable income |
| 12% | $23,201 to $94,300 | $2,320 plus 12% of the amount over $23,200 |
| 22% | $94,301 to $201,050 | $10,852 plus 22% of the amount over $94,300 |
| 24% | $201,051 to $383,900 | $34,337 plus 24% of the amount over $201,050 |
| 32% | $383,901 to $487,450 | $78,221 plus 32% of the amount over $383,900 |
| 35% | $487,451 to $731,200 | $111,357 plus 35% of the amount over $487,450 |
| 37% | $731,201 or more | $196,669.50 + 37% of the amount over $731,200 |
2024 tax brackets: Married filing separately
| Tax rate | Taxable income | Taxes owed in April 2025 |
| 10% | $0 to $11,600 | 10% of taxable income |
| 12% | $11,601 to $47,150 | $1,160 plus 12% of the amount over $11,600 |
| 22% | $47,151 to $100,525 | $5,426 plus 22% of the amount over $47,150 |
| 24% | $100,526 to $191,950 | $17,168.50 plus 24% of the amount over $100,525 |
| 32% | $191,951 to $243,725 | $39,110.50 plus 32% of the amount over $191,950 |
| 35% | $243,726 to $365,600 | $55,678.50 plus 35% of the amount over $243,725 |
| 37% | $365,601 or more | $98,334.75 plus 37% of the amount over $365,600 |
State Taxes: A Surprise Waits
But it’s not just the feds who want a piece of your fortune. Many states also tax lottery winnings. Depending on where you live, state tax rates can range from a minimal 0% to as high as 10.9%. In places like California, Florida, New Hampshire, South Dakota, Tennessee, and Texas, there’s no state income tax on lottery winnings. However, federal taxes are withheld.
The Final Take-Home Amount
When all is said and done, if you win that $108 million jackpot, and you choose the lump sum option with taxes considered, your final take-home amount could be around $35 million or less, depending on your state. That’s an impressive sum, but it’s essential to realize that taxes can swiftly eat away at the fantasy. According to usamega.com, here’s what your mega millions winnings would look like after taxes as a single filer.
| Annuity | Cash Option | |
| Mega millions jackpot for October 4, 2024 | $108,000,000 | $53,800,000 |
| Gross Prize | 30 average annual payments of $3,600,000 | Cash: $53,800,000 |
| – 24% federal tax | – $864,000 | – $12,912,000 |
| – Additional federal taxes due (37% tax rate) | – $426,188 | – $6,952,188 |
| Subtotal | $2,309,812 | $33,935,812 |
Mega Millions winnings after state taxes
| State | Annuity (After 30 annual payments) | Cash Option (Net payout) |
| Arizona | $66,594,360 ($2,219,812 per year) | $32,590,812 |
| Arkansas | $65,082,360 ($2,169,412 per year) | $31,837,612 |
| California | $69,294,360 ($2,309,812 per year) | $33,935,812 |
| Colorado | $64,542,360 ($2,151,412 per year) | $31,568,612 |
| Connecticut | $61,745,160 ($2,058,172 per year) | $30,175,192 |
| Delaware | $62,166,360 ($2,072,212 per year) | $30,385,012 |
| Florida | $69,294,360 ($2,309,812 per year) | $33,935,812 |
| Georgia | $63,365,160 ($2,112,172 per year) | $30,982,192 |
| Idaho | $63,143,760 ($2,104,792 per year) | $30,871,902 |
| Illinois | $63,948,360 ($2,131,612 per year) | $31,272,712 |
| Indiana | $66,000,360 ($2,200,012 per year) | $32,294,912 |
| Iowa | $63,138,360 ($2,104,612 per year) | $30,869,212 |
| Kansas | $63,138,360 ($2,104,612 per year) | $30,869,212 |
| Kentucky | $64,974,360 ($2,165,812 per year) | $31,783,812 |
| Louisiana | $64,164,360 ($2,138,812 per year) | $31,380,312 |
| Maine | $61,572,360 ($2,052,412 per year) | $30,089,112 |
| Maryland | $59,628,360 ($1,987,612 per year) | $29,120,712 |
| Massachusetts | $59,574,360 ($1,985,812 per year) | $29,093,812 |
| Michigan | $64,704,360 ($2,156,812 per year) | $31,649,312 |
| Minnesota | $58,656,360 ($1,955,212 per year) | $28,636,512 |
| Mississippi | $64,218,360 ($2,140,612 per year) | $31,407,212 |
| Missouri | $63,948,360 ($2,131,612 per year) | $31,272,712 |
| Montana | $62,922,360 ($2,097,412 per year) | $30,761,612 |
| Nebraska | $62,987,160 ($2,099,572 per year) | $30,793,892 |
| New Hampshire | $69,294,360 ($2,309,812 per year) | $33,935,812 |
| New Jersey | $57,684,360 ($1,922,812 per year) | $28,152,312 |
| New Mexico | $62,922,360 ($2,097,412 per year) | $30,761,612 |
| New York | $57,522,360 ($1,917,412 per year) | $28,071,612 |
| North Carolina | $64,434,360 ($2,147,812 per year) | $31,514,812 |
| North Dakota | $66,162,360 ($2,205,412 per year) | $32,375,612 |
| Ohio | $65,514,360 ($2,183,812 per year) | $32,052,812 |
| Oklahoma | $64,164,360 ($2,138,812 per year) | $31,380,312 |
| Oregon | $58,602,360 ($1,953,412 per year) | $28,609,612 |
| Pennsylvania | $65,978,760 ($2,199,292 per year) | $32,284,152 |
| Rhode Island | $62,825,160 ($2,094,172 per year) | $30,713,192 |
| South Carolina | $62,382,360 ($2,079,412 per year) | $30,492,612 |
| South Dakota | $69,294,360 ($2,309,812 per year) | $33,935,812 |
| Tennessee | $69,294,360 ($2,309,812 per year) | $33,935,812 |
| Texas | $69,294,360 ($2,309,812 per year) | $33,935,812 |
| Vermont | $59,844,360 ($1,994,812 per year) | $29,228,312 |
| Virginia | $63,084,360 ($2,102,812 per year) | $30,842,312 |
| Washington | $69,294,360 ($2,309,812 per year) | $33,935,812 |
| Washington, D.C. | $57,684,360 ($1,922,812 per year) | $28,152,312 |
| West Virginia | $62,274,360 ($2,075,812 per year) | $30,438,812 |
| Wisconsin | $61,032,360 ($2,034,412 per year) | $29,820,112 |
| Wyoming | $69,294,360 ($2,309,812 per year) | $33,935,812 |
Dreaming Beyond the Numbers
Now that we’ve calculated the numbers, it’s apparent your mega millions payout after taxes may not be quite what you imagined. The reality of winning big comes with responsibility, planning, and yes, taxes. If you want to file your own taxes, ezTaxReturn can help. We’ll guide you step-by-step and guarantee 100% accuracy.
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The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
