How Much Will You Really Win From the $ 1.6 Billion Mega Millions Jackpot [Updated]

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Update 10/23/18 : This post has been updated to reflect the new $ 1.6 billion Mega Millions jackpot.

The Mega Millions jackpot hit a record $ 1.6 billion on Tuesday, but what the winner actually gets depends on the choice of annuity or lump sum and of course taxes.

The debate over whether to take a lump sum or an annuity is intense, although most winners choose the lump sum. Remember that if you choose an annuity, you will pay taxes every year at an increasing rate each year. After a 24 percent federal contribution, the average annual payment is $ 40,533,333 per year for 30 years, which equates to approximately $ 1,215,999,990, while the total lump sum is $ 687,724,000 per US megacard .

In addition, government taxes must be considered. States including California and Delaware do not tax lottery income, which means that you get a lot more money living in one of these states than someone from, say, New York.

USA Mega has a breakdown of lump-sum and annuity payout schedules, provided you don’t split the bank (Alabama, Alaska, Hawaii, Mississippi, Nevada, and Utah don’t sell lottery tickets):

Arizona: 5 percent state tax for residents (non-residents of Arizona pay a 6 percent tax).

  • Annuity: – $ 2,666,667 per year (Average net wage per year: $ 37,866,666 ; after 30 payments: $ 1,135,999,980 )
  • Lump sum payment: – USD 45,245,000 (net payout: USD 642,479,000 ).

Arkansas: seven percent government tax

  • Annuity: – $ 3,733,333 per year (Average net salary per year: $ 36,800,000 ; after 30 payments: $ 1,104,000,000 )
  • Lump sum payment: – $ 63,343,000 (net payment: $ 624,381,000 ).

California: No State Tax on Lottery Winnings

Colorado: four percent government tax.

  • Annuity: – $ 2,133,333 per year (average net salary per year: $ 38,400,000 ; after 30 payments: $ 1,152,000,000 )
  • Lump sum: – $ 36,196,000 (Net benefit: $ 651,528,000 ).

Connecticut: 6.99% state tax.

  • Annuity: – $ 3,728,000 (Average net wage per year: $ 36,805,333 ; after 30 payments: $ 1,104,159,990 )
  • Lump sum: – $ 63,252,510 (net payout: $ 624,471,490 )

Delaware: no government tax on lottery winnings

Florida: no government tax on lottery winnings

Georgia: Six percent state tax.

  • Annuity: – USD 3,200,000 (Average net wage per year: USD 37,333,333 ; after 30 payments: USD 1,119,999,990 )
  • Lump sum: – US $ 54,294,000 (net benefit: US $ 633,430,000 ).

Idaho: 7.4% government tax

  • Annuity: – $ 3,946,667 (average net wage per year: $ 36,586,666 ; after 30 payments: $ 1,097,599,980 )
  • Lump sum: – $ 66,962,600 (net payout: $ 620,761,400 )

Illinois: 4.95% government tax.

  • Annuity: – $ 2,640,000 (average net wage per year: $ 37,893,333 ; after 30 payments: $ 1,136,799,990 )
  • Lump sum: – $ 44,792,550 (net pay: $ 64 29 31,450 )

Indiana: 3.23% government tax

  • Annuity: – $ 1,722,667 per year (Average net wage per year: $ 38,810,666 ; after 30 payments: $ 1,164,319,980 )
  • Lump sum: – $ 29,228,270 (net payout: $ 658,495,730 )

Iowa: 5 percent state tax

  • Annuity: – $ 2,666,667 per year (Average net wage per year: $ 37,866,666 ; after 30 payments: $ 1,135,999,980 )
  • Lump sum payment: – USD 45,245,000 (net payout: USD 642,479,000 ).

Kansas: 5 percent state tax.

  • Annuity: – $ 2,666,667 per year (Average net wage per year: $ 37,866,666 ; after 30 payments: $ 1,135,999,980 )
  • Lump sum payment: – USD 45,245,000 (net payout: USD 642,479,000 ).

Kentucky: 5% State Tax *

  • Annuity: – $ 2,666,667 per year (Average net wage per year: $ 37,866,666 ; after 30 payments: $ 1,135,999,980 )
  • Lump sum payment: – USD 45,245,000 (net payout: USD 642,479,000 ).

Louisiana: five percent government tax

  • Annuity: – $ 2,666,667 per year (Average net wage per year: $ 37,866,666 ; after 30 payments: $ 1,135,999,980 )
  • Lump sum payment: – USD 45,245,000 (net payout: USD 642,479,000 ).

Maine: 5% government tax.

  • Annuity: – $ 2,666,667 per year (Average net wage per year: $ 37,866,666 ; after 30 payments: $ 1,135,999,980 )
  • Lump sum payment: – USD 45,245,000 (net payout: USD 642,479,000 ).

Maryland: 8.75% government tax for residents.

  • Annuity: – $ 4,666,667 per year (Average net wage per year: $ 35,866,666 ; after 30 payments: $ 1,075,999,980 )
  • Lump sum: – $ 79,178,750 (net payout: $ 608,545,250 )

Massachusetts: 5 percent state tax.

  • Annuity: – $ 2,666,667 per year (Average net wage per year: $ 37,866,666 ; after 30 payments: $ 1,135,999,980 )
  • Lump sum payment: – USD 45,245,000 (net payout: USD 642,479,000 ).

Michigan: 4.25% government tax

  • Annuity: – $ 2,266,667 per year (Average net wage per year: $ 38,266,666 ; after 30 payments: $ 1,147,999,980 )
  • Lump sum: – $ 38,458,250 (net payout: $ 649,265,750 )

Minnesota: 7.25% government tax

  • Annuity: – $ 3,866,667 per year (Average net wage per year: $ 36,666,666 ; after 30 payments: $ 1,099,999,980 )
  • Lump-sum payment: – USD 65,605,250 (net payout: USD 622,118,750 ).

Missouri: four percent state tax

  • Annuity: – $ 2,133,333 per year (average net salary per year: $ 38,400,000 ; after 30 payments: $ 1,152,000,000 )
  • Lump sum: – $ 36,196,000 (Net benefit: $ 651,528,000 ).

Montana: State tax of 6.9%.

  • Annuity: – $ 3,680,000 per year (Average net wage per year: $ 36,853,333 ; after 30 payments: $ 1,105,599,990 )
  • Lump sum payment: – $ 62,438,100 (net payout: $ 625,285,900 ).

Nebraska: 5% government tax.

  • Annuity: – $ 2,666,667 per year (Average net wage per year: $ 37,866,666 ; after 30 payments: $ 1,135,999,980 )
  • Lump sum payment: – USD 45,245,000 (net payout: USD 642,479,000 ).

New Hampshire: No Tax on Lottery Winnings

New Jersey: 8 percent state tax.

  • Annuity: – $ 4,266,667 per year (Average net wage per year: $ 36,266,666 ; after 30 payments: $ 1,087,999,980 )
  • Lump sum payment: – USD 72,392,000 (net payout: USD 615,332,000 ).

New Mexico: 6% state tax.

  • Annuity: – USD 3,200,000 (Average net wage per year: USD 37,333,333 ; after 30 payments: USD 1,119,999,990 )
  • Lump sum payment: – $ 54,294,000 (net payment: $ 633,430,000 ).

New York: 8.82% state tax.

  • Annuity: – $ 4,704,000 per year (average net wage per year: $ 35,829,333 ; after 30 payments: $ 1,074,879,990 )
  • Lump-sum payment: – $ 79,812,180 (net payment: $ 607,911,820 ).
  • New York and Yonkers levy an additional tax of 3.876% and 1.323%, respectively.

North Carolina: State tax of 5.499%.

  • Annuity: – $ 2,932,800 per year (average net wage per year: $ 37,600,533 ; after 30 payments: $ 1,128,015,990 )
  • Lump sum: – $ 49,760,451 (net payout: $ 637,963,549 ).

North Dakota: 2.9% government tax.

  • Annuity: – $ 1,546,667 per year (Average net wage per year: $ 38,986,666 ; after 30 payments: $ 1,169,599,980 )
  • Lump-sum payment: – USD 26,242,100 (Net payout: USD 661,481,900 ).

Ohio: four percent state tax

  • Annuity: – $ 2,133,333 per year (average net salary per year: $ 38,400,000 ; after 30 payments: $ 1,152,000,000 )
  • Lump sum: – $ 36,196,000 (Net benefit: $ 651,528,000 ).

Oklahoma: 4 percent state tax

  • Annuity: – $ 2,133,333 per year (average net salary per year: $ 38,400,000 ; after 30 payments: $ 1,152,000,000 )
  • Lump sum: – $ 36,196,000 (Net benefit: $ 651,528,000 ).

Oregon: eight percent state tax

  • Annuity: – $ 4,266,667 per year (Average net wage per year: $ 36,266,666 ; after 30 payments: $ 1,087,999,980 )
  • Lump sum payment: – USD 72,392,000 (net payout: USD 615,332,000 ).

Pennsylvania: 3.07% government tax

  • Annuity: – $ 1,637,333 per year (Average net wage per year: $ 38,896,000 ; after 30 payments: $ 1,166,880,000 )
  • Lump sum: – $ 27,780,430 (net payout: $ 659,943,570 )

Puerto Rico: No state or federal taxes on income.

Rhode Island: government tax of 5.99%.

  • Annuity: – $ 3,194,667 per year (Average net wage per year: $ 37,338,666 ; after 30 payments: $ 1,120,159,980 )
  • Lump sum: – $ 54,203,510 (net payout: $ 633,520,490 )

South Carolina: seven percent

  • Annuity: – $ 3,733,333 per year (Average net salary per year: $ 36,800,000 ; after 30 payments: $ 1,104,000,000 )
  • Lump sum payment: – $ 63,343,000 (net payment: $ 624,381,000 ).

South Dakota: no state income tax

Tennessee: no government tax on lottery winnings

Texas: no state income tax

U.S. Virgin Islands: no government tax on lottery winnings

Vermont: State tax of six percent.

  • Annuity: – $ 1,940,000 (Average net wage per year: $ 22,633,333 ; after 30 payments: $ 678,999,990 )
  • Lump sum payment: – $ 32,916,000 (net payment: $ 384,020,000 ).

Virginia: 4 percent state tax

  • Annuity: – $ 2,133,333 per year (average net salary per year: $ 38,400,000 ; after 30 payments: $ 1,152,000,000 )
  • Lump sum: – $ 36,196,000 (Net benefit: $ 651,528,000 ).

Washington DC: No State Tax on Lottery Winnings

Washington DC: 8.5% state tax.

  • Annuity: – $ 4,533,333 per year (Average net wage per year: $ 36,000,000 ; after 30 payments: $ 1,080,000,000 )
  • Lump sum: – $ 76,916,500 (net payout: $ 610,807,500 )

West Virginia: 6.5% government tax

  • Annuity: – $ 3,466,667 per year (Average net wage per year: $ 37,066,666 ; after 30 payments: $ 1,111,999,980 )
  • Lump-sum payment: – $ 58,818,500 (Net payment: $ 628,905,500 ).

Wisconsin: 7.65% government tax

  • Annuity: – $ 4,080,000 per year (average net wage per year: $ 36,453,333 ; after 30 payments: $ 1,093,599,990 )
  • Lump sum: – $ 69,224,850 (net payout: $ 618,499,150 )

Wyoming: No government tax on lottery winnings

* The Kentucky tax withholding on lottery winnings recently changed from six percent from five to five percent.

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