Mega Millions Tax Calculator
Estimate your net Mega Millions payout after federal and state taxes.
Enter Prize Details
Filing Status
For federal tax brackets
Payout Type
Lump sum vs Annuity
Prize Type
Jackpot vs Scratch-off
Estimated Payout
Federal Tax Breakdown
1. Immediate Withholding (24%)
Lottery agencies are required by law to withhold $12,000,000 immediately for prizes over $5,000. This is an advance payment to the IRS, not your final tax bill.
2. Final Tax Liability (Progressive)
Your actual tax is determined by progressive tax brackets. For large winnings, you will likely fall into the top 37% bracket. We estimate your total federal tax to be $18,458,188.
*Since your withholding is less than your estimated liability, you may need to pay an additional $6,458,188 when you file your returns.
State Tax Details: Select a State
Select a state from the form to see specific tax rules and notes.
How Mega Millions Taxes Work
Mega Millions is a multi-state lottery game played in 45 states, the District of Columbia, and the U.S. Virgin Islands. When you win a Mega Millions jackpot, your prize is subject to federal income tax and, in most cases, state income tax.
Lump Sum vs. Annuity
Winners can choose between a cash lump sum or an annuity paid over 30 years. The lump sum is the actual cash value of the jackpot, which is typically about 50% of the advertised amount. The annuity option pays the full advertised amount over 30 installments, with each payment increasing by 5% annually.
Federal Tax Withholding
The IRS requires lottery commissions to withhold 24% of any prize over $5,000 for federal taxes. However, because Mega Millions jackpots are so large, they will almost certainly push you into the top 37% federal tax bracket. This means you'll likely owe an additional 13% when you file your annual tax return.
State Taxes
State taxes on Mega Millions winnings vary by state. Some states, like California and Florida, do not tax lottery winnings at all. Others, like New York and New Jersey, have high state tax rates that can take a significant chunk of your prize.