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Mega Millions Tax Breakdown

Friday, February 27, 2026

Annuity (30 years)
$458,000,000
Cash Option
$212,400,000

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%$278,344,367$128,543,812
Arkansas3.9%$271,932,367$125,570,212
California0%$289,794,367$133,853,812
Colorado4%$271,474,367$125,357,812
Connecticut6.99%$257,780,167$119,007,052
Delaware6.6%$259,566,367$119,835,412
District of Columbia8.5%$250,864,367$115,799,812
Florida0%$289,794,367$133,853,812
Georgia5.75%$263,459,367$121,640,812
Idaho6%$262,314,367$121,109,812
Illinois4.95%$267,123,367$123,340,012
Indiana3.15%$275,367,367$127,163,212
Iowa5%$266,894,367$123,233,812
Kansas5%$266,894,367$123,233,812
Kentucky4.5%$269,184,367$124,295,812
Louisiana4.25%$270,329,367$124,826,812
Maine7.15%$257,047,367$118,667,212
Maryland8.75%$249,719,367$115,268,812
Massachusetts5%$266,894,367$123,233,812
Michigan4.25%$270,329,367$124,826,812
Minnesota7.25%$256,589,367$118,454,812
Missouri4%$271,474,367$125,357,812
Montana6.75%$258,879,367$119,516,812
Nebraska5%$266,894,367$123,233,812
New Hampshire0%$289,794,367$133,853,812
New Jersey8%$253,154,367$116,861,812
New Mexico6%$262,314,367$121,109,812
New York8.82%$249,398,767$115,120,132
North Carolina4.75%$268,039,367$123,764,812
North Dakota2.9%$276,512,367$127,694,212
Ohio3.99%$271,520,167$125,379,052
Oklahoma4.75%$268,039,367$123,764,812
Oregon8%$253,154,367$116,861,812
Pennsylvania3.07%$275,733,767$127,333,132
Puerto Rico0%$289,794,367$133,853,812
Rhode Island5.99%$262,360,167$121,131,052
South Carolina7%$257,734,367$118,985,812
South Dakota0%$289,794,367$133,853,812
Tennessee0%$289,794,367$133,853,812
Texas0%$289,794,367$133,853,812
US Virgin Islands0%$289,794,367$133,853,812
Vermont6%$262,314,367$121,109,812
Virginia4%$271,474,367$125,357,812
Washington0%$289,794,367$133,853,812
West Virginia6.5%$260,024,367$120,047,812
Wisconsin7.65%$254,757,367$117,605,212
Wyoming0%$289,794,367$133,853,812

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