The advertised Mega Millions jackpot is the total of the annuity. The cash option is what the lottery has in the jackpot fund, typically around 45–50% of the headline figure. Lottery winnings are taxed as ordinary income: 24% is withheld, but a big jackpot falls almost entirely in the 37% bracket. Some states (e.g. California, Florida, Texas) don’t tax lottery winnings. Since April 2025 Mega Millions tickets cost $5 and the annuity is still 30 graduated payments.
How to use the Mega Millions Payout Calculator
- Advertised jackpot
- Cash option as a share of the jackpot
- Filing status
- State tax on lottery winnings
- Your other taxable income per year
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the advertised jackpot, the cash value percentage, your filing status, state tax rate and other taxable income.
Tips
- Use your real spending from bank statements rather than guesses.
- Automate savings so they happen before you spend.
- Revisit your plan once a year or after any big life change.
- Keep an emergency fund before investing for long-term goals.
Common mistakes to avoid
- Underestimating irregular expenses such as car repairs, gifts and annual bills.
- Ignoring inflation for long-term goals.
- Taking on high-interest debt to fund wants.
Inputs explained
| Field | What to enter |
|---|---|
| Advertised jackpot | Amount in your currency |
| Cash option as a share of the jackpot | In % |
| Filing status | Choose one: Single, Married filing jointly, Married filing separately, Head of household |
| State tax on lottery winnings | In % |
| Your other taxable income per year | Amount in your currency |
What each result means
- Cash option (before tax) = [Advertised jackpot]×[Cash option as a share of the jackpot]÷100
- Cash option after taxes = [Cash option (before tax)] – [Federal tax on the cash option] – [Cash option (before tax)]×[State tax on lottery winnings]÷100
- Federal withholding at payout (24%) = [Cash option (before tax)]×0.24
- First annuity payment (before tax) = [Advertised jackpot]×0.05÷(1.05^30 – 1)
- Last (30th) annuity payment = [First annuity payment (before tax)]×1.05^29
- Cash option after tax as a share of the annuity after tax = [Cash option after taxes]÷[Total annuity after taxes (approx.)]×100
Example values
How the main result changes when Advertised jackpot changes and everything else stays at the example values above:
| Advertised jackpot | Cash option after taxes |
|---|---|
| 250,000,000 | 72,479,754.75 |
| 375,000,000 | 108,704,754.75 |
| 500,000,000 | 144,929,754.75 |
| 625,000,000 | 181,154,754.75 |
| 750,000,000 | 217,379,754.75 |
| 1,000,000,000 | 289,829,754.75 |
Formula
Cash option ≈ jackpot × cash value shareFirst annuity payment = jackpot × 0.05 ÷ (1.05^30 − 1), each later payment 5% higherFederal tax: 24% withheld, up to 37% owed at filing (2026 brackets)Net = gross − federal tax − state taxWorked example
Inputs — Advertised jackpot: $500,000,000; Cash option as a share of the jackpot: 46 %; Filing status: Single; State tax on lottery winnings: 0 %; Your other taxable income per year: $60,000.
Results — Cash option (before tax) = $230,000,000.00; Federal tax on the cash option = $85,070,245.25; Cash option after taxes = $144,929,754.75; Federal withholding at payout (24%) = $55,200,000.00; First annuity payment (before tax) = $7,525,717.54; Last (30th) annuity payment = $30,976,873.85; Total annuity after taxes (approx.) = $315,892,642.50; Cash option after tax as a share of the annuity after tax = 45.88 %.
Frequently asked questions
Should I take the lump sum or the annuity?
The lump sum gives control and investment growth; the annuity protects against overspending and spreads tax.
How much tax will I pay on a jackpot?
Federal tax up to 37%, plus state tax where it applies.
Can I stay anonymous?
Only in some states.
What formula does the Mega Millions Payout Calculator use?
Cash option ≈ jackpot × cash value share.