Mega Millions Payout Calculator
Find out what you would actually take home from a Mega Millions jackpot after federal and state taxes. Enter the advertised jackpot, choose lump sum or annuity, and see the complete tax breakdown for both options.
Mega Millions jackpots are advertised as the annuity value, which is the total you would receive over 30 graduated annual payments. The lump sum cash option is typically about 57% of that number because it represents the present value of the prize pool.
For a $400 million jackpot, the lump sum would be roughly $228 million. After 37% federal tax ($84.4 million) and 5% state tax ($11.4 million), you take home about $132 million. That is just 33% of the headline number, which surprises most people.
With the annuity, you receive the full $400 million over 30 graduated annual payments. Early payments are smaller and grow by about 5% each year. After taxes on each payment (37% federal + 5% state), the total after-tax annuity value works out to about $232 million over 30 years, or roughly $7.7 million per year on average.
Mega Millions tickets are sold in 45 states plus D.C. and the U.S. Virgin Islands. States that do not tax lottery winnings include California (for lottery only), Florida, Texas, Washington, South Dakota, Wyoming, Tennessee, and New Hampshire. Winning in one of these states keeps an extra 3-13% in your pocket compared to high-tax states like New York.