Mega Millions Jackpot: How Much Do Lottery Winners Get Taxed?

Following the Tuesday night Mega Millions drawing, the life of someone in New York City changed when they hit the jackpot for $432 million. However, the winner will not take home that amount after they are done paying taxes.

The Tuesday night jackpot was worth $432 million with a cash option of $315 million. While the player has the option of choosing between receiving a lump sum of the grand prize or an annuity paid out over 30 years, many opt for the one-time payment.

If the winner chooses to receive their winnings through the lump sum, they would be going for the $315 million cash value. However, they may see less than $200 million by the time they are done paying around $115.6 million in federal, state, and city taxes.

From that $315 million grand prize, 24%, or $75.6 million, will be withheld to pay federal taxes. The winner will most likely owe more once tax season rolls around in April 2022.

New Yoek state is expected to take 8.82% of the winnings, which would be $27.8 million. New York City would have to be paid 3.876% of the winnings, or $12.2 million. After everything is paid, the Mega Millions winner would receive about $199.4 million.

The winning lottery ticket was bought at Pronto Pizza on West 48th Street. The pizza shop is expected to get a $10,000 commission for selling the winning ticket.

The grand prize marks the first jackpot win since June 8. The lottery will reset to $20 million.

The odds of winning the Mega Millions jackpot were one in 302 million. Winners have one year to claim their grand prize.