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Mega Millions Payout Calculator – Lump Sum vs Annuity

Finance Fun calculator lottery Mega Millions payout taxes
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Mega Millions Payout Calculator: Lump Sum vs Annuity

Compare after-tax cash you would receive from a Mega Millions jackpot. Adjust federal and state tax rates to see your net payout for the lump sum cash option or the 30-year annuity.

Jackpot Details
$
Enter the announced Mega Millions jackpot total.
$
Estimated as 60% of advertised jackpot. Adjust %
50% 70%
24% is the automatic withholding; your final rate may be higher.
Some states do not tax lottery prizes.
Lump Sum (Cash Option)
$0

After federal & state taxes

Gross cash value: $0

Federal tax: $0

State tax: $0

Annuity (30 Payments)
$0

Total net over 30 years

Total gross: $0

Total federal tax: $0

Total state tax: $0

Annuity Payment Schedule (Year by Year)
Year Gross Payment Federal Tax State Tax Net Payment
Quick Facts
  • Cash option is typically 50–70% of the advertised jackpot.
  • Annuity payments increase by 5% each year.
  • Federal withholding is 24%, but top marginal rate is 37%.
  • State taxes vary: 9 states don't tax lottery winnings.
FAQ

Lump sum pays the entire cash value at once (after taxes). Annuity pays the full advertised jackpot over 30 years, with payments growing 5% annually. The cash value is lower because it's what the lottery can invest now to fund annuity.

Federal taxes automatically withhold 24%. Depending on your total income, you may owe up to the 37% bracket. Most states also tax lottery prizes (rates vary). Use the dropdown above to see your state's approximate rate.

Currently, California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not levy state income tax on lottery prizes. Other states like Nevada and Alaska have no income tax, but they don't run lotteries.

It depends on your financial goals. Lump sum gives you control to invest and possibly earn more, but comes with lower gross amount. Annuity provides guaranteed yearly income with built-in increases. Consult a financial advisor.

We use a default 60% ratio, but you can adjust between 50–70%. The actual cash value announced by Mega Millions depends on current interest rates and varies each drawing.
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