**Mega Millions Jackpot Hits $740 Million—Here’s How Much A Winner Could Take Home After Taxes**


The Mega Millions jackpot has surged to an astounding $740 million, making it the fourth-largest prize of the year so far. This massive increase came after no tickets matched all six numbers drawn on Tuesday night. While the headline figure is impressive, it's important to note that the actual amount a winner would take home would be significantly reduced after taxes are deducted.
If someone wins the upcoming Mega Millions jackpot, they will face a significant decision: either take the entire $740 million spread out over 30 annual payments or opt for a one-time lump sum payment of $366.3 million, which is typically the more popular choice.
Should the winner choose the lump sum, the initial amount would be subject to a mandatory 24% federal tax withholding, reducing the payout to $278.4 million. However, depending on the winner's overall taxable income, they could be taxed at a federal marginal rate as high as 37%. This could bring their net winnings down further to approximately $230.8 million.
Alternatively, if the winner decides to take the jackpot as an annuity, they would receive roughly $24.7 million each year. But with the 37% federal tax rate, these annual payments could decrease to about $15.5 million.
Moreover, the winner might also have to account for state taxes, which vary significantly. For example, states like New York could tax lottery winnings at up to 10.9%, further reducing the winner's take-home amount. Conversely, states like Texas, Florida, and California do not impose state taxes on lottery winnings, allowing the winner to retain more of their prize.


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