![]() Winners of the $400 million Mega Millions jackpot will take home the most money in the eight states that don't charge a state tax. How much you'd take home after winning Powerball's $522 million jackpot However, since the winnings exceed the top income bracket for taxpayers earning more than $578,125, you're likely to owe an additional 13% in federal taxes when you file your tax return.Īnd most states charge an additional tax, too, ranging from 2.9% in North Dakota to 10.9% in New York, according to. All lottery winnings are considered taxable income by the Internal Revenue Service, so every winner must pay a tax of at least 24% upfront. While the lump sum is much less than the annuity option, most winners pick the upfront payout since they can immediately invest and grow those funds.Īnd then there's the tax bill. ![]() For the Mega Millions $400 million jackpot, it's $205,000,000. For payouts, there are two options: You can get the full jackpot amount as an annuity paid out over 30 years, or you can receive roughly 52% of the jackpot as a lump sum that's paid out right away.įor the $522 million Powerball jackpot, the lump sum payout is $269,600,000.
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