Mega Millions After Taxes: What’s Your True Payout?

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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.