Real Mega Millions payout after federal and state taxes.
Select your state above to see your take-home
Lump Sum vs Annuity
Lump sum pays cash upfront. Annuity pays the full amount over 30 years — more total, but you wait.
Best States to Win In
FL, TX, CA, WA, and NH have 0% state tax on lottery winnings — you keep significantly more.
Estimates based on current federal rate (37%) and state tax rates. Consult a financial advisor before making decisions.
On a $500 million Mega Millions jackpot, the lump sum cash value is roughly $240 million. After the 37% federal tax, you're left with about $151 million before state taxes. In a no-tax state like Florida or Texas, that's your final take-home. In a high-tax state like New York (10.9%), it drops to around $125 million.
The federal tax rate on lottery winnings over $1 million is 37% — the top marginal bracket. The IRS automatically withholds 24% at the time of payout. You'll owe the remaining 13% when you file your tax return. On large jackpots, this difference can be tens of millions of dollars.
The lump sum pays roughly 60% of the advertised jackpot immediately, then gets taxed. The annuity pays the full advertised amount over 30 annual payments, also taxed each year. Most financial advisors favor the lump sum for disciplined investors because money invested today compounds over 30 years faster than the annuity schedule.
Eight states have no state income tax on lottery winnings: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Delaware and Pennsylvania also have no state tax specifically on lottery prizes.
Mega Millions drawings are held every Tuesday and Friday at 11:00 PM ET. Tickets must be purchased before 10:45 PM ET on the night of the drawing. The Mega Ball is drawn from a separate pool of 1–25.
Both are multi-state lottery games with large jackpots, similar federal tax treatment, and lump sum/annuity options. Powerball draws Monday, Wednesday, and Saturday at 10:59 PM ET. Mega Millions draws Tuesday and Friday at 11:00 PM ET. Mega Millions historically reaches larger jackpots more frequently. The tax math is identical — your state is the biggest variable.