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Mega Millions Tax Breakdown

Tuesday, July 7, 2026

Annuity (30 years)
$576,000,000
Cash Option
$253,900,000

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%$349,734,367$153,651,312
Arkansas3.9%$341,670,367$150,096,712
California0%$364,134,367$159,998,812
Colorado4%$341,094,367$149,842,812
Connecticut6.99%$323,871,967$142,251,202
Delaware6.6%$326,118,367$143,241,412
District of Columbia8.5%$315,174,367$138,417,312
Florida0%$364,134,367$159,998,812
Georgia5.75%$331,014,367$145,399,562
Idaho6%$329,574,367$144,764,812
Illinois4.95%$335,622,367$147,430,762
Indiana3.15%$345,990,367$152,000,962
Iowa5%$335,334,367$147,303,812
Kansas5%$335,334,367$147,303,812
Kentucky4.5%$338,214,367$148,573,312
Louisiana4.25%$339,654,367$149,208,062
Maine7.15%$322,950,367$141,844,962
Maryland8.75%$313,734,367$137,782,562
Massachusetts5%$335,334,367$147,303,812
Michigan4.25%$339,654,367$149,208,062
Minnesota7.25%$322,374,367$141,591,062
Missouri4%$341,094,367$149,842,812
Montana6.75%$325,254,367$142,860,562
Nebraska5%$335,334,367$147,303,812
New Hampshire0%$364,134,367$159,998,812
New Jersey8%$318,054,367$139,686,812
New Mexico6%$329,574,367$144,764,812
New York8.82%$313,331,167$137,604,832
North Carolina4.75%$336,774,367$147,938,562
North Dakota2.9%$347,430,367$152,635,712
Ohio3.99%$341,151,967$149,868,202
Oklahoma4.75%$336,774,367$147,938,562
Oregon8%$318,054,367$139,686,812
Pennsylvania3.07%$346,451,167$152,204,082
Puerto Rico0%$364,134,367$159,998,812
Rhode Island5.99%$329,631,967$144,790,202
South Carolina7%$323,814,367$142,225,812
South Dakota0%$364,134,367$159,998,812
Tennessee0%$364,134,367$159,998,812
Texas0%$364,134,367$159,998,812
US Virgin Islands0%$364,134,367$159,998,812
Vermont6%$329,574,367$144,764,812
Virginia4%$341,094,367$149,842,812
Washington0%$364,134,367$159,998,812
West Virginia6.5%$326,694,367$143,495,312
Wisconsin7.65%$320,070,367$140,575,462
Wyoming0%$364,134,367$159,998,812

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