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Mega Millions Tax Breakdown

Tuesday, May 26, 2026

Annuity (30 years)
$311,000,000
Cash Option
$136,400,000

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%$189,409,367$82,563,812
Arkansas3.9%$185,055,367$80,654,212
California0%$197,184,367$85,973,812
Colorado4%$184,744,367$80,517,812
Connecticut6.99%$175,445,467$76,439,452
Delaware6.6%$176,658,367$76,971,412
District of Columbia8.5%$170,749,367$74,379,812
Florida0%$197,184,367$85,973,812
Georgia5.75%$179,301,867$78,130,812
Idaho6%$178,524,367$77,789,812
Illinois4.95%$181,789,867$79,222,012
Indiana3.15%$187,387,867$81,677,212
Iowa5%$181,634,367$79,153,812
Kansas5%$181,634,367$79,153,812
Kentucky4.5%$183,189,367$79,835,812
Louisiana4.25%$183,966,867$80,176,812
Maine7.15%$174,947,867$76,221,212
Maryland8.75%$169,971,867$74,038,812
Massachusetts5%$181,634,367$79,153,812
Michigan4.25%$183,966,867$80,176,812
Minnesota7.25%$174,636,867$76,084,812
Missouri4%$184,744,367$80,517,812
Montana6.75%$176,191,867$76,766,812
Nebraska5%$181,634,367$79,153,812
New Hampshire0%$197,184,367$85,973,812
New Jersey8%$172,304,367$75,061,812
New Mexico6%$178,524,367$77,789,812
New York8.82%$169,754,167$73,943,332
North Carolina4.75%$182,411,867$79,494,812
North Dakota2.9%$188,165,367$82,018,212
Ohio3.99%$184,775,467$80,531,452
Oklahoma4.75%$182,411,867$79,494,812
Oregon8%$172,304,367$75,061,812
Pennsylvania3.07%$187,636,667$81,786,332
Puerto Rico0%$197,184,367$85,973,812
Rhode Island5.99%$178,555,467$77,803,452
South Carolina7%$175,414,367$76,425,812
South Dakota0%$197,184,367$85,973,812
Tennessee0%$197,184,367$85,973,812
Texas0%$197,184,367$85,973,812
US Virgin Islands0%$197,184,367$85,973,812
Vermont6%$178,524,367$77,789,812
Virginia4%$184,744,367$80,517,812
Washington0%$197,184,367$85,973,812
West Virginia6.5%$176,969,367$77,107,812
Wisconsin7.65%$173,392,867$75,539,212
Wyoming0%$197,184,367$85,973,812

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