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Mega Millions Tax Breakdown

Tuesday, July 28, 2026

Annuity (30 years)
$800,000,000
Cash Option
$344,200,000

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%$485,254,367$208,282,812
Arkansas3.9%$474,054,367$203,464,012
California0%$505,254,367$216,887,812
Colorado4%$473,254,367$203,119,812
Connecticut6.99%$449,334,367$192,828,232
Delaware6.6%$452,454,367$194,170,612
District of Columbia8.5%$437,254,367$187,630,812
Florida0%$505,254,367$216,887,812
Georgia5.75%$459,254,367$197,096,312
Idaho6%$457,254,367$196,235,812
Illinois4.95%$465,654,367$199,849,912
Indiana3.15%$480,054,367$206,045,512
Iowa5%$465,254,367$199,677,812
Kansas5%$465,254,367$199,677,812
Kentucky4.5%$469,254,367$201,398,812
Louisiana4.25%$471,254,367$202,259,312
Maine7.15%$448,054,367$192,277,512
Maryland8.75%$435,254,367$186,770,312
Massachusetts5%$465,254,367$199,677,812
Michigan4.25%$471,254,367$202,259,312
Minnesota7.25%$447,254,367$191,933,312
Missouri4%$473,254,367$203,119,812
Montana6.75%$451,254,367$193,654,312
Nebraska5%$465,254,367$199,677,812
New Hampshire0%$505,254,367$216,887,812
New Jersey8%$441,254,367$189,351,812
New Mexico6%$457,254,367$196,235,812
New York8.82%$434,694,367$186,529,372
North Carolina4.75%$467,254,367$200,538,312
North Dakota2.9%$482,054,367$206,906,012
Ohio3.99%$473,334,367$203,154,232
Oklahoma4.75%$467,254,367$200,538,312
Oregon8%$441,254,367$189,351,812
Pennsylvania3.07%$480,694,367$206,320,872
Puerto Rico0%$505,254,367$216,887,812
Rhode Island5.99%$457,334,367$196,270,232
South Carolina7%$449,254,367$192,793,812
South Dakota0%$505,254,367$216,887,812
Tennessee0%$505,254,367$216,887,812
Texas0%$505,254,367$216,887,812
US Virgin Islands0%$505,254,367$216,887,812
Vermont6%$457,254,367$196,235,812
Virginia4%$473,254,367$203,119,812
Washington0%$505,254,367$216,887,812
West Virginia6.5%$453,254,367$194,514,812
Wisconsin7.65%$444,054,367$190,556,512
Wyoming0%$505,254,367$216,887,812

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