Mega Millions is taxed exactly like Powerball: ordinary income, 24% withheld at payout, 37% top federal rate, plus your state's rate. On today's $433,000,000 jackpot the cash option is $178,600,000 and you keep about $112.6M before state tax.
Calculate your take-home
Mega Millions take-home, step by step
| Step | Amount | Running total |
|---|---|---|
| Advertised jackpot (30 payments) | $433,000,000 | — |
| Cash value (41% of advertised) | $178,600,000 | $178,600,000 |
| Federal withholding at payout (24%) | −$42,867,000 | $135,733,000 |
| Federal balance due at filing | −$23,169,625 | $112,575,875 |
| State tax (0% shown) | $0 | $112,575,875 |
Replace the state line with your own rate using the calculator above, or read your state page.
The 13-point gap
The lottery withholds 24%. Your actual federal rate is 37%. On $178,600,000 that gap is $23,169,625, due at filing. It is the single most common way lottery winners get into trouble, and it is entirely predictable.
Move the balance into a separate Treasury or money-market account the week the prize lands. It is not your money; it is a tax bill with a due date.
Mega Millions vs Powerball after tax
Same rules, different numbers. Because Mega Millions has a $5 ticket and a higher jackpot floor, its prizes tend to be larger on average but the tax treatment is identical. A useful way to compare is take-home per dollar of advertised jackpot: both land near 26.0% in a no-tax state.
State treatment
9 jurisdictions take nothing from a home-state ticket: California, Florida, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wyoming. California and Pennsylvania do it by exempting their own lottery prizes; the others have no personal income tax. The remaining states apply their top marginal rate, which ranges from 2.5% in Arizona and North Dakota to 13.3% in California for out-of-state winnings.
See the full state index for the number that applies where you bought the ticket.
Questions
How much is Mega Millions after taxes?
On the current $433,000,000 jackpot, the cash option is $178,600,000. Federal tax at 37% takes about $66,036,625, leaving roughly $112.6M in a state with no lottery tax. Your state rate comes off that.
Is Mega Millions taxed differently from Powerball?
No. Both are lottery winnings taxed as ordinary income. The 24% federal withholding, the 37% top bracket, and every state rule apply identically. Only the prize amounts differ.
Do I pay tax on a $10 or $500 Mega Millions prize?
Yes, it is taxable income, but the lottery only withholds federal tax on prizes above $5,000. Smaller prizes are reported on your return and taxed at your marginal rate. Many winners owe nothing extra because the standard deduction absorbs it.
Which states tax Mega Millions the least?
California, Florida, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wyoming take nothing from a ticket bought there. At the other end, New York at 10.9% plus 3.876% for city residents, Hawaii at 11%, and New Jersey at 10.75% take the most.