The Mega Millions jackpot increased to $681 million after tickets failed to match all six numbers drawn Friday night, setting up the inevitable winner for hefty winnings that will be shaved down significantly after taxes.
The would-be winner of the next draw could receive the $681 million prize money through 30 annual payouts, or a $336.1 million cash option.
If the winner selects the lump sum amount, the jackpot money will drop to about $255.4 million after federal tax withholdings of 24% are applied.
The winner’s taxable income will also play a role in their withholdings and could face a federal marginal rate as high as 37%, reducing the lump sum winnings to $211.7 million.
Further taxes could be applied depending on the winner’s state of residence, as states like New York tax lottery winnings by 10.9%, while states such as California, Texas and Florida do not.
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Two tickets matched five numbers Friday night in Florida and Wisconsin, resulting in $1 million and $4 million in prize money for the winners, respectively.
1 in 302,575,350. Those are the odds of winning the Mega Millions jackpot.
The previous Mega Millions jackpot winner won a grand prize of $560 million in June, which was the fourth largest lottery prize of the year at that point. The lump sum option for the prize dropped to about $201 million after federal tax withholdings. However, those winnings were eclipsed by an Oregon winner who won the Powerball’s jackpot of $1.3 billion in April, marking the fourth-largest prize in Powerball history. The lump sum was worth $413.4 million after federal and state taxes.
Winning $1.3 Billion Powerball Ticket Sold—4th Largest Ever—Here’s How Much The Winner Could Take Home (Forbes)
Mega Millions winning numbers for Friday, Aug. 30, 2024: No jackpot winner (Detroit Free Press)
