(For the sake of simplicity, we'll assume there are no deductions in this example.) ![]() This newfound windfall boosts your taxable income to $145,000, leading to an increase in your marginal tax rate from 22% to 24%. Now, let's suppose you strike it lucky and win a substantial $100,000 in the Mega Million lottery. Let's imagine a situation where you are an individual taxpayer earning an annual income of $45,000. You can access federal tax rates and calculators via the IRS website. Whether you’re a single or joint filer as well as your tax bracket determines how much you’ll be paying in federal taxes – but your winnings can easily push you to a higher bracket. Your winnings from the Mega Millions lottery are treated as a taxable income, and therefore subject to both federal and state tax where applicable. How Much Tax Will You Pay on Mega Millions Winnings? For example, large charitable donations can be written off, meaning reduced tax liabilities. What our Mega Millions tax calculator provides is a quick overview of the gross and net (after taxes) winnings you'd receive for both options – allowing you to make a more informed decision when comparing the two.įinally, as an added feature, our tool also breaks down the annuity option into a handy payout schedule so you know how much annual payment you will receive per year. Since the cash option and annuity option award different payouts, it only follows that your tax liabilities (state + federal tax) will also be different for both. On the other hand, the annuity or annual payment option awards the winner with the full amount or 100% of the jackpot – starting with one initial payment, followed by annual payments over the next 29 years. Our Mega Millions Payout and Tax Calculator ExplainedĪs you might already know, when a player wins the Mega Millions jackpot, they'll have to choose between a single lump sum payment or 30 annual payments to claim their prize.Ĭhoosing the lump sum, also known as the cash option, reduces the jackpot size to approximately 61% of the original amount, but awards it all at once to the player. Lump Sum/Cash Option Calculator Gross Payout (~61% of the jackpot) They're all US state licensed and you can be signed up in less than 5 minutes! Why not check out our recommended sports betting sites and online casinos for something a little different. Just input the estimated jackpot amount, select your state, and our Mega Millions payout calculator will do all the rest.Īfter you are done, check out our guide on the best lottery prediction software for tools that will help increase your odds of winning - significantly. You'll also find a payout table for the annual payment option below for a more detailed breakdown. But, how much? Our Mega Millions calculator takes into account the federal and state tax rates and calculates payouts for both cash lump sum and annual payment options, so you can compare the two. Assuming you beat the odds and match the draw perfectly, federal and state laws require that a sizable portion of your prize money goes towards taxes. Winning the Mega Millions jackpot is no easy feat, and even if you do it doesn't mean you'll be taking home the entire prize amount. Play the lottery online with official tickets! Save up to 20% on lottery tickets with the TheLotter VIP club. Mega Millions Payout Calculator: Payout.Lottery Calculators: From Odds to Taxes.Powerball Calculator: Payout, Tax & Annuity Explained.Mega Millions Payout Calculator: Payout, Tax & Annuity Explained.Lottery Odds Calculator: Calculate Your Odds of Winning The Lottery.
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