Topline
The Mega Millions jackpot soared to $542 million—becoming 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 26, 41, 50, 53, 62, and Mega Ball 12.
If a winner emerges in the next draw, they will have a choice between splitting the $542 million prize over 30 annual installments or taking a lump sum cash payout of $242 million—the preferred option for most winners.
If the winner chooses the cash payout, their winnings will first drop to around $183.9 million after a mandatory 24% federal withholding is applied.
The winner would likely face a federal marginal rate as high as 37%, depending on their taxable income, further reducing the winnings to around $152.5 million.
If the installments route is chosen, the winner’s annual payments of around $18.1 million would fall to $11.4 million after the 37% federal marginal 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 drawing is scheduled to take place on Friday night. The Powerball jackpot, which has risen to $375 million, will have its next drawing on Wednesday night.
Surprising Fact
A Mega Millions ticket buyer will need to overcome astronomical odds of 1-in-290.4 million to win the jackpot. This is slightly better than the Powerball jackpot’s even poorer odds of 1-in-292.2 million.
Key Background
In March, a Mega Millions ticket sold in Illinois won a $533 million jackpot, which was the biggest lottery prize of the year before Tuesday night’s draw. 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 Nears $500 Million—Here’s What The Winner Could Take Home After Taxes (Forbes)
