Mega Millions Payout Calculator: What You Keep After Taxes
Enter a jackpot, choose the cash lump sum or the 30-year annuity, and pick your state to see the federal withholding, the balance still owed at filing, state tax and your real take-home amount.
Quick answer
A Mega Millions winner never receives the advertised jackpot in cash. The cash option is roughly half the headline number, the lottery withholds 24% federally immediately, the top federal rate of 37% applies to the whole prize, and your state can take up to another 10.9% (14.776% in New York City). A $400 million jackpot taken as cash in a no-tax state leaves about $131 million.
Calculate your take-home
- Cash value of prize
- $208,000,000
- Federal withholding at payout (24%)
- − $49,920,000
- Additional federal tax due at filing (to 37%)
- − $27,040,000
- State / local tax
- − $0
- Estimated take-home
- $131,040,000
- Effective tax rate
- 37.0%
Estimates only, for US federal and state income tax on 2026 rules. Mega Millions annuity payments rise about 5% each year in practice, so yearly amounts vary; this tool shows the level average. Not tax advice — confirm with a qualified tax professional.
How the tax on a Mega Millions win works
- The jackpot is the annuity number. The cash option you can actually take is the amount currently in the prize pool, usually a little over half.
- 24% is withheld immediately and reported to you on Form W-2G.
- The top 37% bracket applies. The gap between 24% and 37% is due with your return, normally via estimated payments.
- Your state takes its share — nothing in nine states, up to 14.776% in New York City.
Frequently asked questions
How much of a Mega Millions jackpot do you actually take home?
The advertised jackpot is the 30-year annuity value. The cash option is typically around 50–55% of it. From that cash amount the lottery withholds 24% federally right away, and because a jackpot lands you in the top 37% federal bracket you usually owe roughly another 13% at filing time, plus any state tax.
Is the 24% federal withholding the total federal tax on Mega Millions?
No. 24% is only mandatory withholding reported on Form W-2G. A jackpot pushes almost every winner into the 37% top federal bracket, so the remaining balance is due with your return — often as quarterly estimated payments to avoid an underpayment penalty.
Which states do not tax Mega Millions winnings?
California, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax lottery prizes. Every other participating state withholds at its own rate, and New York City adds a local tax on top of the state rate.
Is the lump sum or the annuity better after taxes?
The annuity pays the full advertised jackpot across 30 graduated payments and spreads the tax bill, but each payment is still taxed at your rate that year. The lump sum is smaller but invested immediately. This calculator shows both so you can compare the after-tax totals side by side.
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