Mega Millions drawings are held on Tuesdays and Fridays. One note: Your winnings could also be subject to local taxes in some states.Ĭlick here for USA Mega, a website that provides information on lotteries in the United States and around the world, and breaks down by state what you would take home if you win the Mega Millions drawing - both the lump sum option and the annuity option. This means if you live in those states and win, you will get $446,014,045 after federal taxes. If you live in California, Delaware, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington or Wyoming there’s some good news for you - those states do not tax lottery winnings. Additional taxes are charged if you live in New York City or Yonkers.

The lump sum most New York residents would get after federal and state taxes would be $368,852,945. If you live in New York, get out your wallet, because the state taxes lottery winnings at 8.82%. So after federal and state taxes, that leaves you with $417,768,835. If you live in Ohio, your state tax rate for lottery winnings is 3.99%. State tax rates on lottery winnings vary. So, when you take the cash option, you will end up with $446,014,045 after federal taxes. Remember, the rest of your federal tax bill comes next year and will cost you another $91,989,955. The federal government will immediately take $169,896,000 from that cash option (24%). If the jackpot remains at $1.35 billion for Friday’s drawing, the cash option is $707.9 million. So, let’s say you decide to take the cash option when you win the Mega Millions jackpot. You will owe the rest of the tax - the difference between 24% and 37% - at tax time next year. For instance, if you win 10,000 betting on sports but lose 12,000, it’s possible you can avoid paying any gambling-related income taxes (since you lost more than you won).

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