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Mega Millions Tax Breakdown

Tuesday, January 13, 2026

Annuity (30 years)
$215,000,000
Cash Option
$98,300,000

After-Tax Payouts by State

Federal tax: 37% marginal rate • Click any state for 30-year schedule

StateState TaxAnnuity (After Tax)Cash (After Tax)
Arizona2.5%$131,329,367$59,513,312
Arkansas3.9%$128,319,367$58,137,112
California0%$136,704,367$61,970,812
Colorado4%$128,104,367$58,038,812
Connecticut6.99%$121,675,867$55,099,642
Delaware6.6%$122,514,367$55,483,012
District of Columbia8.5%$118,429,367$53,615,312
Florida0%$136,704,367$61,970,812
Georgia5.75%$124,341,867$56,318,562
Idaho6%$123,804,367$56,072,812
Illinois4.95%$126,061,867$57,104,962
Indiana3.15%$129,931,867$58,874,362
Iowa5%$125,954,367$57,055,812
Kansas5%$125,954,367$57,055,812
Kentucky4.5%$127,029,367$57,547,312
Louisiana4.25%$127,566,867$57,793,062
Maine7.15%$121,331,867$54,942,362
Maryland8.75%$117,891,867$53,369,562
Massachusetts5%$125,954,367$57,055,812
Michigan4.25%$127,566,867$57,793,062
Minnesota7.25%$121,116,867$54,844,062
Missouri4%$128,104,367$58,038,812
Montana6.75%$122,191,867$55,335,562
Nebraska5%$125,954,367$57,055,812
New Hampshire0%$136,704,367$61,970,812
New Jersey8%$119,504,367$54,106,812
New Mexico6%$123,804,367$56,072,812
New York8.82%$117,741,367$53,300,752
North Carolina4.75%$126,491,867$57,301,562
North Dakota2.9%$130,469,367$59,120,112
Ohio3.99%$128,125,867$58,048,642
Oklahoma4.75%$126,491,867$57,301,562
Oregon8%$119,504,367$54,106,812
Pennsylvania3.07%$130,103,867$58,953,002
Puerto Rico0%$136,704,367$61,970,812
Rhode Island5.99%$123,825,867$56,082,642
South Carolina7%$121,654,367$55,089,812
South Dakota0%$136,704,367$61,970,812
Tennessee0%$136,704,367$61,970,812
Texas0%$136,704,367$61,970,812
US Virgin Islands0%$136,704,367$61,970,812
Vermont6%$123,804,367$56,072,812
Virginia4%$128,104,367$58,038,812
Washington0%$136,704,367$61,970,812
West Virginia6.5%$122,729,367$55,581,312
Wisconsin7.65%$120,256,867$54,450,862
Wyoming0%$136,704,367$61,970,812

Tax Planning Tips

  • Annuity vs. Cash: Annuity provides 30 years of growing payments (~5 percent annual increase). Cash option is about 47 percent of annuity value.
  • Federal Taxes: Top marginal rate of 37 percent applies to lottery winnings over the highest bracket thresholds.
  • State Taxes Vary: Some states have no income tax on lottery winnings, while others are much higher.
  • Do Not Forget: Additional taxes may apply (Medicare surtax, local taxes). Consult a tax professional immediately.
  • Anonymity: Some states allow winners to remain anonymous. Check your state's laws before claiming.

Cash vs. Annuity Decision

Choose Annuity If:

  • • You want guaranteed income for 30 years
  • • You are worried about spending it all too quickly
  • • You prefer protection from bad investments
  • • You want payments to grow about 5 percent annually

Choose Cash If:

  • • You have a solid investment plan
  • • You can earn more than 5 percent annual returns safely
  • • You want full control of your money now
  • • You have expert financial advisors