Topline
The Mega Millions jackpot climbed to $672 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, 4, 10, 48, 56 and gold Mega Ball 22.
If a winner emerges in the next draw, they will have a choice between taking the $672 million split over 30 annual installments or a one time cash prize of $293.3 million—the preferred option for most winners.
If the cash payout is chosen, the winnings will first drop to around $222.9 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 $184.8 million.
If the installment route is chosen, the winner’s annual payouts of around $22.4 million would drop to $14.1 million after the 37% federal marginal tax rate is applied.
Depending on their place of residence, 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.
What To Watch For?
The next Mega Millions jackpot draw will take place on Friday night. The Powerball jackpot, which has risen to $498 million, will have its next drawing on Wednesday night.
Surprising Fact
A Mega Millions ticket buyer will have to overcome astronomical odds of 1-in-290.4 million to win the lottery. This is only slightly better than the Powerball jackpot’s even poorer odds of 1-in-292.2 million.
Key Background
The biggest lottery prize claimed so far this year is a $533 million jackpot won by a Mega Millions ticket buyer from Illinois in March. No other lottery prize has crossed $500 million this year. The biggest claimed Powerball jackpot of the year so far is a $250.8 million prize won by a lottery player from Arkansas.
