What will happen when you won Mega Millions Jackpot? Excited; Don’t worry Federal government has marked a clear line about the prizemoney. You will have a choice between two payout alternatives in the extremely improbable event that you win — the odds are 1 in 302.5 million. You can choose to receive either a lump sum payment equal to slightly over half the jackpot value or the entire jackpot money as an annuity paid out over 29 years.
But there are taxes as well. You will automatically pay a federal withholding tax of 24% on your winnings for either payout choice. While the top tax bracket, which applies to income of $578,126 or more, levies a 37% tax, winning millions of dollars will place you in that category. That implies that when you file your 2023 tax return, you will almost surely owe an additional 13% in taxes.
State taxes are also due, and these depend on where you live. Lottery winnings are taxed in some states but not others, with rates ranging from 2.9% to 10.9%.
California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the other eight states that do not impose income taxes on lottery winnings.
According to usamega.com, for both the lump sum and annuity options, you would take home the following amount after taxes in each of the participating states as well as Washington, D.C., assuming the top federal tax rate is 37%.
Arizona
- Lump sum: $255,347,045
- Annuity: $497,211,360
Arkansas
- Lump sum: $246,063,045
- Annuity: $479,171,340
California
- Lump sum: $265,897,045
- Annuity: $517,711,350
Colorado
- Lump sum: $247,329,045
- Annuity: $481,631,340
Connecticut
- Lump sum: $236,399,245
- Annuity: $460,393,350
Delaware
- Lump sum: $238,045,045
- Annuity: $463,591,350
Florida
- Lump sum: $265,897,045
- Annuity: $517,711,350
Georgia
- Lump sum: $241,632,045
- Annuity: $470,561,340
Idaho
- Lump sum: $241,421,045
- Annuity: $470,151,360
Illinois
- Lump sum: $245,008,045
- Annuity: $477,121,350
Indiana
- Lump sum: $252,604,045
- Annuity: $491,881,350
Iowa
- Lump sum: $240,577,045
- Annuity: $468,511,350
Kansas
- Lump sum: $241,843,045
- Annuity: $470,971,350
Kentucky
- Lump sum: $246,907,045
- Annuity: $480,811,350
Louisiana
- Lump sum: $245,852,045
- Annuity: $478,761,360
Maine
- Lump sum: $235,724,045
- Annuity: $459,081,360
Maryland
- Lump sum: $228,128,045
- Annuity: $444,321,360
Massachusetts
- Lump sum: $227,917,045
- Annuity: $443,911,350
Michigan
- Lump sum: $247,962,045
- Annuity: $482,861,340
Minnesota
- Lump sum: $224,330,045
- Annuity: $436,941,360
Mississippi
- Lump sum: $244,797,045
- Annuity: $476,711,340
Missouri
- Lump sum: $245,008,045
- Annuity: $477,121,350
Montana
- Lump sum: $237,412,045
- Annuity: $462,361,350
Nebraska
- Lump sum: $237,876,245
- Annuity: $463,263,360
New Hampshire
- Lump sum: $265,897,045
- Annuity: $517,711,350
New Jersey
- Lump sum: $220,532,045
- Annuity: $429,561,360
New Mexico
- Lump sum: $240,999,045
- Annuity: $469,331,340
New York
- Lump sum: $219,899,045
- Annuity: $428,331,360
North Carolina
- Lump sum: $245,852,045
- Annuity: $478,761,360
North Dakota
- Lump sum: $253,659,045
- Annuity: $493,931,340
Ohio
- Lump sum: $249,059,245
- Annuity: $484,993,350
Oklahoma
- Lump sum: $245,852,045
- Annuity: $478,761,360
Oregon
- Lump sum: $224,119,045
- Annuity: $436,531,350
Pennsylvania
- Lump sum: $252,941,645
- Annuity: $492,537,360
Rhode Island
- Lump sum: $240,619,245
- Annuity: $468,593,340
South Carolina
- Lump sum: $238,467,045
- Annuity: $464,411,340
South Dakota
- Lump sum: $265,897,045
- Annuity: $517,711,350
Tennessee
- Lump sum: $265,897,045
- Annuity: $517,711,350
Texas
- Lump sum: $265,897,045
- Annuity: $517,711,350
Vermont
- Lump sum: $228,972,045
- Annuity: $445,961,340
Virginia
- Lump sum: $241,632,045
- Annuity: $470,561,340
Washington
- Lump sum: $265,897,045
- Annuity: $517,711,350
Washington, D.C.
- Lump sum: $220,532,045
- Annuity: $429,561,360
West Virginia
- Lump sum: $238,467,045
- Annuity: $464,411,340
Wisconsin
- Lump sum: $233,614,045
- Annuity: $454,981,350
Wyoming
- Lump sum: $265,897,045
- Annuity: $517,711,350
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