This content is for educational purposes only and does not constitute financial advice. Consult a qualified financial advisor before making financial decisions. This content is for educational purposes only and does not constitute tax advice. Tax laws vary by state and individual circumstances. Consult a qualified tax professional or CPA for guidance on your specific tax situation.
How Mega Millions Payouts Work
Mega Millions is one of the two largest multi-state lottery games in the United States, with drawings held every Tuesday and Friday at 11:00 PM Eastern Time. Players select five white balls from 1 to 70 and one gold Mega Ball from 1 to 25. To win the jackpot, you must match all six numbers.
The game offers nine prize tiers, ranging from a $2 prize for matching just the Mega Ball up to the multi-hundred-million-dollar jackpot. For an additional $1 per play, the Megaplier option multiplies non-jackpot prizes by 2x, 3x, 4x, or 5x.
If you win the jackpot, you face a choice that will define your financial future: take the lump sum (also called the cash option) or receive the full advertised amount as an annuity paid out in 30 graduated annual payments over 29 years, with each payment increasing by 5% over the previous year. This is the same annuity structure used by Powerball, adopted by both games in October 2017. Understanding how each option works, and what taxes will take, is essential before you decide.
Mega Millions Payout Chart: All 9 Prize Tiers
The table below shows every Mega Millions prize level, the odds of winning, and the Megaplier prize range. California is the only participating state that pays pari-mutuel prizes (variable amounts based on ticket sales and number of winners) rather than fixed amounts for non-jackpot tiers.
| Match | Prize | Odds | Megaplier Prize |
|---|---|---|---|
| 5 + Mega Ball | Jackpot | 1 in 302,575,350 | N/A |
| 5 | $1,000,000 | 1 in 12,607,306 | $2M – $5M |
| 4 + Mega Ball | $10,000 | 1 in 931,001 | $20K – $50K |
| 4 | $500 | 1 in 38,792 | $1K – $2.5K |
| 3 + Mega Ball | $200 | 1 in 14,547 | $400 – $1K |
| 3 | $10 | 1 in 606 | $20 – $50 |
| 2 + Mega Ball | $10 | 1 in 693 | $20 – $50 |
| 1 + Mega Ball | $4 | 1 in 89 | $8 – $20 |
| Mega Ball only | $2 | 1 in 37 | $4 – $10 |
Megaplier multiplies non-jackpot prizes by 2x, 3x, 4x, or 5x (there is no 10x Megaplier). California pays pari-mutuel amounts that vary by drawing. Overall odds of winning any prize: 1 in 24.
Mega Millions Annuity vs. Lump Sum
The advertised Mega Millions jackpot, the number on billboards and news headlines, represents the total of all 30 annuity payments over 29 years. If you choose the annuity, the lottery purchases U.S. Treasury bonds to fund a stream of graduated payments. Each year's payment is 5% larger than the previous year, building in inflation protection over nearly three decades.
The lump sum cash option is the actual amount of money the lottery has on hand right now, what it would cost to purchase the bonds that generate the annuity stream. This figure is typically 50% to 60% of the advertised jackpot, depending on current interest rates. When Treasury yields are higher, the lottery needs less principal to fund the annuity, so the cash option is a smaller percentage. When rates are low, the cash option is closer to the advertised jackpot.
To illustrate the difference, here is the complete year-by-year payout chart for a $500 million Mega Millions jackpot, showing every one of the 30 annuity payments before and after federal taxes:
| Year | Annual Payment (Pre-Tax) | After Federal Tax (37%) | Cumulative (Pre-Tax) |
|---|---|---|---|
| 1 (Immediate) | $7,525,718 | $4,741,202 | $7,525,718 |
| 2 | $7,902,003 | $4,978,262 | $15,427,721 |
| 3 | $8,297,104 | $5,227,175 | $23,724,825 |
| 4 | $8,711,959 | $5,488,534 | $32,436,783 |
| 5 | $9,147,557 | $5,762,961 | $41,584,340 |
| 6 | $9,604,935 | $6,051,109 | $51,189,275 |
| 7 | $10,085,181 | $6,353,664 | $61,274,456 |
| 8 | $10,589,440 | $6,671,347 | $71,863,896 |
| 9 | $11,118,912 | $7,004,915 | $82,982,809 |
| 10 | $11,674,858 | $7,355,161 | $94,657,666 |
| 11 | $12,258,601 | $7,722,919 | $106,916,267 |
| 12 | $12,871,531 | $8,109,064 | $119,787,798 |
| 13 | $13,515,107 | $8,514,518 | $133,302,906 |
| 14 | $14,190,863 | $8,940,244 | $147,493,769 |
| 15 | $14,900,406 | $9,387,256 | $162,394,174 |
| 16 | $15,645,426 | $9,856,619 | $178,039,601 |
| 17 | $16,427,698 | $10,349,449 | $194,467,298 |
| 18 | $17,249,082 | $10,866,922 | $211,716,381 |
| 19 | $18,111,537 | $11,410,268 | $229,827,917 |
| 20 | $19,017,113 | $11,980,781 | $248,845,031 |
| 21 | $19,967,969 | $12,579,821 | $268,813,000 |
| 22 | $20,966,368 | $13,208,812 | $289,779,367 |
| 23 | $22,014,686 | $13,869,252 | $311,794,053 |
| 24 | $23,115,420 | $14,562,715 | $334,909,473 |
| 25 | $24,271,191 | $15,290,850 | $359,180,665 |
| 26 | $25,484,751 | $16,055,393 | $384,665,415 |
| 27 | $26,758,988 | $16,858,163 | $411,424,404 |
| 28 | $28,096,938 | $17,701,071 | $439,521,342 |
| 29 | $29,501,785 | $18,586,124 | $469,023,126 |
| 30 (Final) | $30,976,874 | $19,515,431 | $500,000,000 |
Based on a $500 million advertised jackpot paid as 30 graduated annual payments increasing 5% per year. The after-tax column applies the 37% top federal rate. The IRS withholds only 24% at payout, so plan for the additional 13% due at filing. State taxes (0% to 10.9%, detailed in the state table below) reduce each payment further. By comparison, the lump sum cash option for this jackpot would be roughly $275 to $290 million before taxes.
As the table shows, the annuity's graduated structure means your first-year payment is relatively modest compared to the advertised jackpot, but by year 30 each annual check is more than four times the size of the first. The total of all 30 payments equals the full $500 million advertised amount. By contrast, the lump sum would give you roughly $275 to $290 million upfront, before taxes.
Today’s Mega Millions Jackpot: Your Payout Schedule
The current Mega Millions jackpot is an estimated $130 Million. Under the annuity option, that pays about $1,956,687 in year one, and each later payment grows 5% until the final payment of roughly $8,053,987 in year 30. The lump sum is approximately $72 Million before taxes. The chart below applies the official 30-payment formula to the live jackpot, so every figure refreshes automatically after each drawing.
Before taxes, each payment 5% larger than the last
| Year | Annual Payment (Pre-Tax) | After Federal Tax (37%) | Cumulative (Pre-Tax) |
|---|---|---|---|
| 1 (Immediate) | $1,956,687 | $1,232,713 | $1,956,687 |
| 5 | $2,378,365 | $1,498,370 | $10,811,928 |
| 10 | $3,035,463 | $1,912,342 | $24,610,993 |
| 15 | $3,874,106 | $2,440,686 | $42,222,485 |
| 20 | $4,944,449 | $3,115,003 | $64,699,708 |
| 25 | $6,310,510 | $3,975,621 | $93,386,973 |
| 30 (Final) | $8,053,987 | $5,074,012 | $130,000,000 |
Figures come from the current advertised jackpot and update after every drawing. The after-tax column applies the 37% top federal rate before state taxes. The cash option for this jackpot would be approximately $72 Million before taxes.
Send this live chart to anyone following the jackpot, or add it to your own site.
Mega Millions Payout Chart by Jackpot Amount
Every Mega Millions jackpot follows the same formula. The first annuity payment is roughly 1.5% of the advertised jackpot, each later payment grows 5%, and the final payment is about 6.2% of the total. The chart below applies that formula to eight common jackpot sizes so you can see your first payment, your final payment, and the estimated cash option at a glance.
| Advertised Jackpot | First Payment (Year 1) | Final Payment (Year 30) | Est. Cash Option | Cash After Federal Tax |
|---|---|---|---|---|
| $100M | $1,505,144 | $6,195,375 | $55M | $34.7M |
| $200M | $3,010,287 | $12,390,750 | $110M | $69.3M |
| $300M | $4,515,431 | $18,586,124 | $165M | $104M |
| $500M | $7,525,718 | $30,976,874 | $275M | $173.3M |
| $750M | $11,288,576 | $46,465,311 | $412.5M | $259.9M |
| $1B | $15,051,435 | $61,953,748 | $550M | $346.5M |
| $1.5B | $22,577,153 | $92,930,622 | $825M | $519.8M |
| $2B | $30,102,870 | $123,907,495 | $1.1B | $693M |
Cash option estimated at 55% of the advertised jackpot (the actual percentage moves with interest rates, typically 50% to 60%). Cash after federal tax applies the 37% top rate. State taxes are not included. Use the lottery payout calculator to model your exact jackpot, state, and payout option.
Mega Millions Payout After Taxes
Taxes are the biggest factor reducing your Mega Millions take-home prize, regardless of whether you choose the lump sum or annuity. Here is how the tax landscape works:
- Federal withholding: 24%. The IRS requires an immediate 24% withholding on lottery prizes exceeding $5,000. That said, this is only a prepayment toward your actual tax bill. Since any Mega Millions jackpot will push you into the highest federal tax bracket, your true federal tax rate is 37% (the top marginal rate for 2025/2026). You will owe the remaining 13% when you file your return.
- State income taxes: 0% to 13.3%. State taxes vary dramatically depending on where you live. Nine states have no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. California has the highest state income tax rate at 13.3% but does not tax lottery winnings. At the high end for lottery purposes, New York charges 10.9% (plus 3.876% for NYC residents), New Jersey taxes at 10.75%, and Oregon at 9.9%.
- Effective combined rate. When you add federal and state taxes together, Mega Millions winners in high-tax states can lose 45% to 50% of their winnings, while winners in no-income-tax states keep roughly 63% of the lump sum or a proportionally larger share of each annuity payment.
The table below shows state tax rates for lottery winnings in all 50 states plus the District of Columbia. Use our lottery calculator to see your personalized after-tax payout based on your state and jackpot amount.
| State | Tax Rate | Notes |
|---|---|---|
| Alabama (AL) | 5.00% | No state lottery; residents owe up to 5.00% on out-of-state winnings |
| Alaska (AK) | 0% | No state lottery; no state income tax |
| Arizona (AZ) | 2.50% | - |
| Arkansas (AR) | 3.70% | - |
| California (CA) | 0% | Lottery prizes exempt from state tax (Gov. Code 8880.68); rate applies to other income only |
| Colorado (CO) | 4.40% | - |
| Connecticut (CT) | 6.99% | - |
| Delaware (DE) | 6.60% | - |
| District of Columbia (DC) | 10.75% | - |
| Florida (FL) | 0% | No state income tax |
| Georgia (GA) | 4.99% | - |
| Hawaii (HI) | 11.00% | No state lottery; residents owe up to 11.00% on out-of-state winnings |
| Idaho (ID) | 5.30% | Flat rate above a small zero-bracket |
| Illinois (IL) | 4.95% | Flat rate on all income |
| Indiana (IN) | 2.95% | Flat rate; county income taxes also apply |
| Iowa (IA) | 3.80% | Flat rate; school district surtaxes may also apply |
| Kansas (KS) | 5.58% | Lottery withholds a flat 5%, below the 5.58% actually owed |
| Kentucky (KY) | 3.50% | Flat rate on all income |
| Louisiana (LA) | 3.00% | Flat rate on all income |
| Maine (ME) | 9.15% | 7.15% plus a 2% surcharge on income over $1M (new for 2026) |
| Maryland (MD) | 6.50% | Top rate applies above $1M taxable income; county taxes up to 3.3% may also apply |
| Massachusetts (MA) | 9.00% | 5% flat plus the 4% surtax on income over $1,107,750; lottery withholds only 5% |
| Michigan (MI) | 4.25% | Flat rate; some cities levy additional tax |
| Minnesota (MN) | 9.85% | - |
| Mississippi (MS) | 4.00% | Flat rate above the first $10,000; steps down to 3% by 2030 |
| Missouri (MO) | 4.70% | - |
| Montana (MT) | 5.65% | Drops to 5.4% in 2027 |
| Nebraska (NE) | 4.55% | Drops to 3.99% in 2027 |
| Nevada (NV) | 0% | No state lottery; no state income tax |
| New Hampshire (NH) | 0% | No state income tax on lottery winnings |
| New Jersey (NJ) | 10.75% | - |
| New Mexico (NM) | 5.90% | - |
| New York (NY) | 10.90% | NYC residents pay an additional 3.876% city tax; Yonkers residents pay a 16.75% surcharge on their state tax (about 1.83% of the prize at the top rate) |
| North Carolina (NC) | 3.99% | Flat rate on all income |
| North Dakota (ND) | 2.50% | Top bracket; the 1.95% bracket does not reach a jackpot |
| Ohio (OH) | 2.75% | Flat rate as of 2026; municipal taxes may also apply |
| Oklahoma (OK) | 4.50% | - |
| Oregon (OR) | 9.90% | - |
| Pennsylvania (PA) | 3.07% | Flat rate; local taxes may also apply |
| Rhode Island (RI) | 5.99% | - |
| South Carolina (SC) | 5.21% | - |
| South Dakota (SD) | 0% | No state income tax |
| Tennessee (TN) | 0% | No state income tax |
| Texas (TX) | 0% | No state income tax |
| Utah (UT) | 4.45% | No state lottery; residents owe a flat 4.65% on out-of-state winnings |
| Vermont (VT) | 8.75% | - |
| Virginia (VA) | 5.75% | - |
| Washington (WA) | 0% | No state income tax |
| West Virginia (WV) | 4.58% | Lottery withholds 6.5%, above the 4.58% actually owed |
| Wisconsin (WI) | 7.65% | - |
| Wyoming (WY) | 0% | No state income tax |
Rates reflect the top marginal state income tax rate applicable to lottery winnings as of 2026. Some states do not participate in Mega Millions. Local taxes (e.g., New York City, Yonkers) may apply in addition to state rates.
Can You Sell Mega Millions Annuity Payments?
Yes. If you chose the Mega Millions annuity and later decide you need a lump sum, you are not permanently locked in. In most states, you can sell some or all of your remaining lottery annuity payments to a purchasing company for an upfront cash payment. The transaction is governed by state law and requires court approval to protect the seller's interests.
Catalina Structured Funding has purchased lottery annuity streams across the country, and we have seen winners sell for everything from paying off a mortgage to funding a business. We handle all paperwork, court filings, and legal requirements at no cost to you. Whether you need to sell all of your remaining payments or just a portion, CSF can provide a free, no-obligation quote so you can evaluate your options before committing.
Common reasons Mega Millions winners sell their annuity payments include paying off a mortgage, funding a business venture, eliminating high-interest debt, covering medical expenses, or simply gaining the financial flexibility that comes with a larger sum available now rather than spread over decades. You can sell a partial stream, for example, the next 10 years of payments , and continue receiving payments after that period. Use our lottery payout calculator to estimate how much your remaining payments are worth, then contact us for a personalized quote.
Why Most Winners Choose the Lump Sum
Historically, the vast majority of Mega Millions jackpot winners choose the lump sum over the annuity. There are several reasons for this pattern. First, the lump sum gives winners immediate control over the full cash value of their prize, allowing them to invest, spend, or gift the money on their own timeline. Second, many financial advisors believe that a disciplined investor can earn returns that exceed the 5% annual growth built into the annuity structure, potentially generating more wealth over 29 years than the annuity would provide.
Third, the lump sum provides tax certainty. You pay taxes once at today's known rates rather than gambling on what federal and state tax rates might look like over the next three decades. If rates increase, annuity recipients could end up paying more in total taxes than anticipated.
That said, the annuity has its own advantages: it provides a guaranteed income stream, protects against the risk of overspending, and ensures you cannot lose the entire prize to bad investments or fraud. For a detailed breakdown of the trade-offs, read our lump sum vs. annuity comparison.
How to Calculate Your Mega Millions Payout
Every jackpot amount produces different lump sum values, annuity payment schedules, and after-tax take-home figures. Rather than relying on rules of thumb, use our free lottery payout calculator to model any Mega Millions jackpot amount with your specific state of residence and filing status. The calculator shows you:
- Estimated lump sum cash value based on the advertised jackpot
- Complete graduated annuity payment schedule (30 payments over 29 years)
- Federal and state tax deductions for both the lump sum and annuity options
- Net take-home amount under each scenario so you can compare side by side
Pair the calculator results with our Powerball payout guide if you play both games and want to compare prize structures and odds.
Get a Free Quote
If you are already receiving Mega Millions annuity payments and want to explore converting them to a lump sum, Catalina Structured Funding can help. We purchase lottery annuity payment streams in most states and handle the entire process, including court filings and legal documentation, at no cost to you.
Call us at (800) 317-3769 or request your free quote online. There is no obligation, no pressure. We will walk you through your options so you can make the decision that is right for your financial situation.
Already receiving Mega Millions annuity payments?
The best next step is to find out what your remaining payments are actually worth. CSF will give you a written quote showing the exact lump sum you would receive. No cost, no obligation.