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Mega Millions Tax Breakdown

Friday, January 30, 2026

Annuity (30 years)
$303,000,000
Cash Option
$136,700,000

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%$184,569,367$82,745,312
Arkansas3.9%$180,327,367$80,831,512
California0%$192,144,367$86,162,812
Colorado4%$180,024,367$80,694,812
Connecticut6.99%$170,964,667$76,607,482
Delaware6.6%$172,146,367$77,140,612
District of Columbia8.5%$166,389,367$74,543,312
Florida0%$192,144,367$86,162,812
Georgia5.75%$174,721,867$78,302,562
Idaho6%$173,964,367$77,960,812
Illinois4.95%$177,145,867$79,396,162
Indiana3.15%$182,599,867$81,856,762
Iowa5%$176,994,367$79,327,812
Kansas5%$176,994,367$79,327,812
Kentucky4.5%$178,509,367$80,011,312
Louisiana4.25%$179,266,867$80,353,062
Maine7.15%$170,479,867$76,388,762
Maryland8.75%$165,631,867$74,201,562
Massachusetts5%$176,994,367$79,327,812
Michigan4.25%$179,266,867$80,353,062
Minnesota7.25%$170,176,867$76,252,062
Missouri4%$180,024,367$80,694,812
Montana6.75%$171,691,867$76,935,562
Nebraska5%$176,994,367$79,327,812
New Hampshire0%$192,144,367$86,162,812
New Jersey8%$167,904,367$75,226,812
New Mexico6%$173,964,367$77,960,812
New York8.82%$165,419,767$74,105,872
North Carolina4.75%$177,751,867$79,669,562
North Dakota2.9%$183,357,367$82,198,512
Ohio3.99%$180,054,667$80,708,482
Oklahoma4.75%$177,751,867$79,669,562
Oregon8%$167,904,367$75,226,812
Pennsylvania3.07%$182,842,267$81,966,122
Puerto Rico0%$192,144,367$86,162,812
Rhode Island5.99%$173,994,667$77,974,482
South Carolina7%$170,934,367$76,593,812
South Dakota0%$192,144,367$86,162,812
Tennessee0%$192,144,367$86,162,812
Texas0%$192,144,367$86,162,812
US Virgin Islands0%$192,144,367$86,162,812
Vermont6%$173,964,367$77,960,812
Virginia4%$180,024,367$80,694,812
Washington0%$192,144,367$86,162,812
West Virginia6.5%$172,449,367$77,277,312
Wisconsin7.65%$168,964,867$75,705,262
Wyoming0%$192,144,367$86,162,812

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