Mega Millions tax calculator
Enter tonight's advertised Mega Millions jackpot and the cash value the lottery announces with it. The calculator taxes the lump sum once and each of the 30 annuity payments in its own year, with the 2026 federal brackets and the state you choose.
The jackpot and cash value above are only an example; replace them with the figures the lottery publishes for the next draw. Estimates, not tax advice.
How a Mega Millions jackpot is paid
The advertised jackpot is the annuity: 30 yearly payments, the first at once and each later one 5% larger. The cash option is a single payment of the cash value, usually a little under half the advertised amount. Either way the lottery withholds 24% for the IRS, and on a jackpot most of the prize is taxed at 37%, so the rest is due with your return, plus any state tax.
The game
A ticket picks five numbers from 1 to 70 and a Mega Ball from 1 to 24. The chance of the jackpot on one ticket is 1 in 290,472,336. Draws are held on Tuesday and Friday. Since April 2025 every ticket carries a multiplier for the smaller prizes; the jackpot is not multiplied.
Questions
How much federal tax is withheld from a Mega Millions jackpot?
24% of the prize, whichever option you take. The final federal tax on a jackpot is close to 37%, so the difference is due when you file.
Which states do not tax a Mega Millions jackpot?
States with no income tax on winnings, and California, which does not tax prizes bought through the California Lottery. See every state.
Is the lump sum or the annuity better?
The calculator shows the yearly return at which the two are worth the same after tax. Which suits you depends on your plans and advisers; it does not say which to take.
Odds computed from the game's format. See also the general lottery tax calculator and the 2026 federal rules.
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