Topline
The Mega Millions jackpot climbed to $604 million—the biggest lottery prize of the year so far—after no tickets matched all six numbers drawn on Tuesday night, although the eventual winner will take home a much smaller payout after taxes and deductions.
Key Facts
The six numbers drawn on Tuesday night were 2, 31, 35, 36, 63 and Mega Ball 12.
If a winner emerges in the next draw, they will get to choose between taking the $604 million split over 30 annual installments or receiving a one-time lump-sum payout of $266.3 million—the preferred option for most winners.
If the cash payout is chosen, the winnings will first drop to around $202.4 million after a mandatory 24% federal withholding is applied.
The winner is likely to face a federal marginal rate as high as 37%, depending on their overall taxable income, further slashing their winnings to around $167.8 million.
If the installment option is chosen, the winner’s annual payments of around $20.1 million would fall to $12.7 million after the 37% federal marginal tax rate is applied.
Depending on where they live, the winner could face additional taxes, as some states, such as New York, tax lottery winnings at 10.9%, while others, such as Texas, Florida, and California, don’t.
Big Number
1-in-290.4 million. Those are the astronomical odds a ticket buyer will need to overcome to win the Mega Millions jackpot. This is slightly better than the Powerball jackpot’s even poorer odds of 1-in-292.2 million.
What To Watch For?
The next Mega Millions jackpot draw will take place on Friday night. The Powerball jackpot, which has risen to $434 million, will have its next drawing on Wednesday night.
Key Background
A Mega Millions ticket buyer from Illinois claimed the biggest lottery prize of the year so far in March after they won a $533 million jackpot. The biggest Powerball jackpot of the year so far is a $250.8 million prize claimed by a lottery player from Arkansas.
further reading
Mega Millions Jackpot Rises To $542 Million—Here’s What The Winner Could Take Home After Taxes (Forbes)