Mega Millions tax calculator

Mega Millions payout facts

• Mega Millions draws on Tuesday and Friday nights.
• Since April 2025 a ticket costs $5 and includes a built-in multiplier on non-jackpot prizes.
• The jackpot starts at $50 million.
• Winners choose the cash option or the annuity of 30 payments rising 5% a year.

How lottery winnings are taxed in the US

Lottery winnings are taxable income. When you claim a prize over $5,000, the lottery withholds 24% for federal tax before you see a cent. That is only a down payment. A big win is added to your other income and taxed at your marginal rates, which reach 37% on income above roughly $640,000 for a single filer in 2026. So the withheld 24% usually leaves a further bill when you file.

Most states also tax lottery winnings at their ordinary income tax rate. A few states charge nothing: California, Florida, Texas, Washington, Nevada, Tennessee, South Dakota, Wyoming, Alaska and New Hampshire do not tax lottery prizes. If you live in one of them, state tax is zero. Some cities add their own tax.

What the calculator does

1. 1Takes the advertised jackpot and applies the cash option percentage to get the lump sum.
2. 2Adds the lump sum to the other income you enter and applies the 2026 federal brackets and standard deduction.
3. 3Subtracts the 24% already withheld to show how much more you will owe.
4. 4Applies your state rate to the winnings.
5. 5For the annuity, spreads the jackpot over 30 payments that each grow by 5%, taxes every year separately and discounts the result to today's money.

This is an estimate. It leaves out deductions, credits, the alternative minimum tax and local taxes. Always confirm with a tax professional before claiming a large prize.

Lump sum or annuity: how to think about it

• The lump sum is a fixed amount now, usually about half the advertised jackpot, and is taxed in one year at the top brackets.
• The annuity pays the full advertised amount over 29 years, rises 5% a year and is taxed year by year, often at lower rates in the early years.
• The right answer depends on how much you can earn on invested money, your discipline, your health and family, and your tax situation.
• Winners who take the annuity cannot spend it all at once, which protects some people from themselves. Winners who take the lump sum can invest it, but also lose it.