Topline
The Mega Millions jackpot rose to $625 million—the year’s second biggest lottery prize so far—after no tickets matched all six numbers drawn on Tuesday night, although the eventual winner will take home a much smaller payout after paying their taxes.
The Mega Millions jackpot has climbed to $625 million.
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Key Facts
If a winner emerges in the next draw, they will have the choice between taking the $625 million prize spread over 30 annualized or a one-time cash payout of $288.8 million—the preferred option for most winners.
If the cash prize is chosen, the winnings will first drop to $219.5 million after a mandatory federal withholding of 24% is applied.
The winner could then face a federal marginal rate as high as 37%, depending on their taxable income, which would further reduce their winnings to approximately $182 million.
If the winner chooses the installment route, their annual payments of around $20.83 million would drop to $13.1 million after the 37% federal marginal rate is applied.
The winner may also face additional taxes from their state of residence, as some states, such as New York, tax lottery winnings at 10.9%, while others, such as Texas, Florida, and California, don’t.
What To Watch For
The next Mega Millions lottery drawing is scheduled for Friday night. The Powerball jackpot currently stands at $273 million, and the next drawing is set to take place on Wednesday night.
Surprising Fact
A Mega Millions ticket buyer will need to overcome astronomical odds of 1-in-290.4 million to win the jackpot. This is a slight improvement over the lottery competition’s earlier odds of 1 in 302.5 million. Earlier this year, Mega Millions implemented major changes that also enhanced the odds of winning smaller prizes.
Key Background
Last month, two Powerball ticket buyers from Missouri and Texas split the second-largest lottery prize ever after winning a $1.78 billion jackpot. The current Mega Millions jackpot has now eclipsed a $526.5 million prize won by a Powerball ticket buyer from California in March. The biggest Mega Millions prize claimed so far was a $349 million jackpot won by an Illinois resident in March.
Further Reading
Mega Millions Jackpot Rises To $575 Million—What The Winner Could Take Home After Taxes (Forbes)
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