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    • Mega Millions ticket sold in Texas wins 0 million jackpot — here’s how much they’ll take home after taxes
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    Mega Millions ticket sold in Texas wins $800 million jackpot — here’s how much they’ll take home after taxes

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    Topline

    A single lottery winner from Texas won the $800 billion Mega Millions jackpot on Tuesday, the fourth-largest lottery prize of the year so far. But after paying his taxes, he will take home a significantly smaller amount.

    Key Facts

    Mega Millions announced that a ticket sold in Texas matched all six numbers drawn Tuesday night: 1, 2, 16, 24 and 66, plus the golden Mega Ball 6.

    The winner must now choose between receiving the full $800 million payout, spread over 30 annual installments, or a lump sum of $404.2 million. This is typically the most popular choice among winners.

    The cash amount drops to $307.2 million after deducting a mandatory 24% federal tax withholding.

    Depending on taxable income, the winner could face a federal marginal rate of as much as 37%, which would further reduce his winnings to $254.6 million.

    If the winner chooses the installment payment, his or her annual payment would drop from $26.7 million to $16.8 million if the federal marginal rate of 37% is applied.

    Unlike several other states, Texas does not levy a tax on lottery winnings.

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    Large number

    1 in 302.6 million. Those are the outrageous odds Tuesday night’s winner had to overcome to win the jackpot. This is even worse than the already abysmal odds of the Powerball jackpot of 1 in 292.2 million.

    Main background

    In March, a single ticketholder from New Jersey won the $1.13 billion Mega Millions jackpot, the largest prize pool of the year so far. A few weeks later, a single ticket sold in Oregon won a $1.3 billion Powerball jackpot. The winner was later identified as Cheng “Charlie” Saephan, a Portland resident who was undergoing chemotherapy for cancer. Saephan said at the time that he would use the winnings to help provide for his family and “find myself a good doctor.”

    Read more

    Mega Millions Billion Dollar Jackpot Claimed in New Jersey — Here’s What the Winner Takes Home After Taxes (Forbes)

    $1.3 Billion Powerball Jackpot Winner Is Cancer Patient Looking Forward to Finding ‘A Good Doctor’ (Forbes)

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