If you're playing the billion-dollar Mega Millions tonight, then you have some pretty big dreams. Imagine what you could do if you won the $1.6 billion jackpot. But even if you're the only winner tonight, you'll actually be taking home a lot less than you might expect, depending on where you live. Here is just how much the payout will be tonight, how much will you take home, and how it would change after tax. Read on for more details.
How Much Would You Take Home if You Won the $1.6 Billion Jackpot?
Let's get into some more specifics about the jackpot itself. If the jackpot is $1.6 billion, just how much will you actually be taking home?
The $1.6 billion amount is what you would be paid total as an annuity. This means you wouldn't be getting $1.6 billion dollars up front if you won. Instead, the winnings would be spread out over multimillion-dollar annual payments over 30 years, starting with one immediate payment. Each payment is 5 percent bigger than the previous one, to help protect against inflation.
If you take the lump-sum cash option, you'll get a one-time, lump-sum payment. It won't be $1.6 billion, but it will be equal to all the cash that's in the Mega Millions jackpot prize pool, MegaMillions.com explains. Mega Millions currently estimates the cash option to be $904 million.
How Much Do You Win After Tax?
Unfortunately, all prizes are also subject to income taxes. Exactly how much is taken out depends on where you live, and whether you're subject to a federal income tax only or a federal and state income tax (and in some cases, local taxes too.)
The best after-tax and payout calculator is available at USA Mega's jackpot analysis page. The calculations are based on a $1 billion annuity or a $904.9 million cash lump sum.
Right off the bat, no matter where you are, you'll lose 24 percent of your gross prize to federal income taxes.
If you're taking 30 annual payments of $53.3 million, then you'll lose a total of $12.8 million each time, taking home $40.53 million each year after federal taxes. If you take a lump sum, you'll lose a total of $217.176 million up front, for a total of $687.724 million after just federal taxes.
Here are your annuity and lump sum takeovers per state, as calculated and presented by USA Mega.
Arizona: 5 percent tax: $37.866 million a year or $642.479 million cash Arkansas: 7 percent state tax: $36.8 million per year or $624.381 million cash California: No state tax Colorado: 4 percent state tax: $38.4 million per year or $651.528 million cash Connecticut: 6.99 percent state tax: $36.8 million per year or $624.471 million cash Delaware: No state tax Florida: No state tax Georgia: 6 percent tax: $37.333 million per year or $633.430 million cash Idaho: 7.4 percent tax: $36.586 million per year or $620.761 million cash Illinois: 4.95 percent state tax: $37.893 million per year or $642.931 million cash Indiana: 3.23 percent state tax: $38.810 million per year or $658.495 million cash Iowa: 5 percent tax: $37.866 million a year or $642.479 million cash Kansas: 5 percent tax: $37.866 million a year or $642.479 million cash Kentucky: 5 percent tax: $37.866 million a year or $642.479 million cash Louisiana: 5 percent tax: $37.866 million a year or $642.479 million cash Maine: 5 percent tax: $37.866 million a year or $642.479 million cash Maryland: 8.75 percent state tax: $35.866 million per year or $608.545 million cash Massachusetts: 5 percent tax: $37.866 million a year or $642.479 million cash Michigan: 4.25 percent tax: $38.266 million a year or $649.265 million cash Minnesota: 7.25 percent state tax: $36.666 million a year or $622.118 million cash Missouri: 4 percent state tax: $38.4 million per year or $651.528 million cash Montana: 6.9 percent tax: $36.853 million a year or $625.285 million cash Nebraska: 5 percent tax: $37.866 million a year or $642.479 million cash New Hampshire: No state tax New Jersey: 8 percent state tax: $36.266 million a year or $615.332 million cash New Mexico: 6 percent tax: $37.333 million per year or $633.430 million cash New York: 8.82 percent tax: $35.829 million per year or $607.911 million cash North Carolina: 5.499 percent tax: $37.600 million a year or $637.963 million cash North Dakota: 2.9 percent tax: $38.986 million a year or $661.481 million cash Ohio: 4 percent state tax: $38.4 million per year or $651.528 million cash Oklahoma: 4 percent state tax: $38.4 million per year or $651.528 million cash Oregon: 8 percent state tax: $36.266 million a year or $615.332 million cash Pennsylvania: 3.07 percent tax: $38.896 million a year or $659.943 million cash Rhode Island: 5.99 percent tax: $37.338 million a year or $633.520 million cash South Carolina: 7 percent state tax: $36.8 million a year or $624.381 million cash South Dakota: no state taxes Tennessee: No state taxes Texas: No state taxes U.S. Virgin Islands: Not known Vermont: 6 percent tax: $37.333 million per year or $633.430 million cash Virginia: 4 percent state tax: $38.4 million per year or $651.528 million cash Washington: No state tax Washington D.C.: 8.5 percent tax: $36 million a year or $610.807 million cash West Virginia: 6.5 percent tax: $37.066 million a year or $628.905 million cash Wisconsin: 7.65 percent tax: $36.453 million a year or $618.499 million cash Wyoming: No state tax Note: The numbers above are all averages, and other factors might affect the final number.
Remember also that if more than one person wins the lottery, you'll be splitting the prize, which will make what you take home even less.
Mega Millions Tax Calculator
If you'd like a more accurate number, you can enter your information into a Mega Millions tax calculator. There's one at AfterLotto here. Just enter your state, estimated jackpot value, and you'll get after-taxes estimates for lump sums and annuity.
The Basics: Here's What You Win for Matching Different Numbers
The big payout for Mega Millions is estimated to be $1.6 billion if someone wins the jackpot. Of course, the total will be less after taxes. If more than one person wins the whole thing, then the prize will be split among the winners.
But there are other prizes you can win besides the big jackpot, according to Mega Millions' rules which you can read here. In order to win the jackpot, you'd need to match all five white balls and the yellow Mega ball.
If you match all five white numbers only, you'll win $1 million (and more if you're using a Mega plier option.) If you match 4 white and the yellow, you'll win $10,000. If you match 4 white only, you'll win $500. If you match 3 white and 1 yellow, you'll win $200. If you match 3 white only or if you match 2 white and 1 yellow, you'll win $10. If you match a yellow ball and a white ball during tonight's drawing, then you will walk away with $4. That's enough to buy yourself two more tickets for $2 each in the next jackpot. But if you only match two white balls and <em>don't </em>match the yellow ball, you won't win anything. If you match one yellow ball (which is the last number drawn), then you'll win $2. But if you only match one white number, then you also won't win anything tonight. A lot of people match two of the white balls or just one white ball and get excited, thinking they won something. Sadly, matching just one or two white balls won't win you anything.
The Megaplier ball will indicate if the non-jackpot prizes are being increased 2X, 3X, 4X, or 5X.
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