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Finance Calc Kit
Tax

Mega Millions Payout Calculator

Calculate net payout after federal and state taxes for Mega Millions jackpot cash option and 30-year annuity.

Jackpot and tax rates

$
%
%

Net take-home payout

$30,160,000.00

Gross payout: $52,000,000.00

Gross payout

$52,000,000.00

Federal tax

$19,240,000.00

37%

State tax

$2,600,000.00

5%

Total tax withheld

$21,840,000.00

Gross payout allocation

Gross payout$52,000,000.00
  • Net take-home payout$30,160,000.0058.0%
  • Federal tax$19,240,000.0037.0%
  • State tax$2,600,000.005.0%
Cash option estimates use approximately 52% of the advertised annuity jackpot. Federal and state tax rates reflect the 2025 tax year assumptions. Actual withholding, local city taxes, and annuity payment schedules vary by state and lottery rules.
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Mega Millions cash option vs annuity payout

Mega Millions advertises a headline jackpot based on a 30-year graduated annuity. Winners can instead choose a one-time cash lump sum that is typically far smaller than the advertised figure. Lottery winnings are ordinary taxable income for federal and most state tax purposes in tax year 2025. This calculator estimates gross payout, federal tax, state tax, and net take-home for both options.

For mandatory federal withholding and the gap between 24% withholding and a 37% top bracket, use the lottery tax calculator. To model the full 30-year graduated payment schedule with annual 5% increases, try the lottery annuity calculator.

Mega Millions payout formulas

The cash option is approximately 52% of the advertised annuity jackpot:

Cash Gross=Advertised Jackpot×0.52\text{Cash Gross} = \text{Advertised Jackpot} \times 0.52

Federal and state income taxes apply to the gross payout:

Net Payout=Gross Payout−(Gross×rfed)−(Gross×rstate)\text{Net Payout} = \text{Gross Payout} - (\text{Gross} \times r_{\text{fed}}) - (\text{Gross} \times r_{\text{state}})

Worked example: $100 million jackpot

A $100,000,000 advertised Mega Millions jackpot with the cash option yields a gross payout of $52,000,000. At a 37% federal rate and 5% state rate, federal tax is $19,240,000, state tax is $2,600,000, and estimated net take-home is $30,160,000. Actual withholding at claim time may differ from your final tax return liability.

Frequently asked questions

Why is the cash option less than the advertised jackpot?
The advertised amount is the sum of 30 graduated annuity payments. The cash option is the present cash value of that prize pool, which is typically around half of the headline number before taxes.
Which states do not tax lottery winnings?
States such as California, Florida, Tennessee, Texas, and Washington do not levy state income tax on lottery prizes. Other states tax winnings at rates from roughly 3% to over 10%.
Is the 24% federal withholding my final tax bill?
No. Large jackpots usually push winners into the 37% federal bracket. You may owe additional federal tax when filing your return even after 24% is withheld at the lottery office.
Should I take the annuity or cash?
Cash gives immediate liquidity and investment control but a smaller upfront amount. The annuity spreads income over 30 years with built-in annual increases, which can reduce peak-year tax brackets but limits flexibility.
Does this calculator include local city taxes?
No. Some cities, such as New York City, impose additional local income taxes on lottery winnings. Enter your combined state rate or adjust federal and state inputs to match your jurisdiction.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.