Headline
Mega Millions Jackpot Reaches an Astounding $825 Million—Detailed Prospects for a Winner Post-Taxes Payment
The Mega Millions jackpot amplified to an astonishing $825 million—making it the fourth largest lottery reward of the year thus far—as no tickets managed to match all six numbers drawn on Tuesday night. However, the eventual winner will walk away with a significantly less amount post-tax payments.
Crucial Details
The six numbers drawn on Tuesday; 56, 66, 67, 68, 69, and the golden Mega Ball 18; did not lead to a match for any ticket holder.
Should a contestant occur in the subsequent draw, they will have the opportunity to select between pocketing the $825 million awarded in 30 annual installments, or opting for a lump sum cash payout of $382.2 million—a popular choice.
Choosing the lump sum payout would reduce its value due to a mandatory 24% federal tax withholding, resulting in a haul of $290.5 million.
The federal taxable income for the year may push the tax rate up to a formidable 37%, further depleting the winnings to a mere $240.8 million.
Should the annual installment route be chosen, the yearly payments of about $27.5 million might decrease to around $17.3 million, if a 37% federal marginal tax rate is applicable.
The fortunate resident of the winning state may or may not incur additional taxes, depending on their state's regulations. For instance, New York imposes a 10.9% tax on lottery winnings, while states like Texas, Florida, and California are tax-free on lottery wins.
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The Staggering Number
1-in-302.6 million. These are the dismal odds a hopeful ticket buyer must surmount to secure the Mega Millions jackpot. Even more daunting than the already unbelievable 1-in-292.2 million odds of the Powerball lottery.
Keep an Eye On
The Mega Millions jackpot draw is set for Friday night.
Historic Context
The largest Mega Millions reward of the year thus far is the $1.13 billion prize claimed by a single-ticket holder from New Jersey in March. The second largest was an $810 million prize claimed by a ticket holder from Texas in September. The current jackpot now ranks as the second-largest Mega Millions reward of the year and the fourth largest overall jackpot of 2024.
Additional Reading
Mega Millions Jackpot Swells to $740 Million—The Amount the Winner Will Receive After Taxes (Our Website)
The Mega Millions winning numbers drawn on Tuesday were 56, 66, 67, 68, 69, and the Mega Ball 18, but no ticket holder managed to match all six numbers, resulting in the jackpot amplifying even further. Should a contestant match all six numbers in the subsequent draw, they will have to contend with lottery taxes, as the lump sum cash payout would be subject to a 24% federal tax withholding, reducing its value to $290.5 million.
