Updated Mar 2, 2024, 09:54am EST
Topline
The Mega Millions jackpot has grown to an estimated $650 million after no winning tickets were drawn Friday night, making it the seventh-largest prize in its history, though a lucky winner—facing one-in-302-million odds—would take home just over one-third that amount after paying required taxes.
Key Facts
A ticket holder matching all five white balls and one “megaball” for the grand prize can choose between a payout over 30 annual installments or a one-time lump sum of $308.6 million.
If the winner chooses the more popular lump sum option, the winnings would be reduced to $234.5 million after a mandatory 24% federal tax withholding, while a federal marginal rate as high as 37%—depending on the winner’s taxable income and other tax deductions—would reduce the winnings to just over $194.4 million.
Annual installments would pay out an average of $13.6 million per year with a 37% federal marginal rate.
Some states tax lottery winnings, with rates as low as 2.5% in Arizona ($7.7 million) to as high as 10.9% in New York ($33.6 million), though other states like California or Texas don’t tax winnings.
Surprising Fact
The jackpot is the seventh-largest in Mega Millions history, narrowly trailing a $656 million prize won in 2012 for sixth-largest. The five other largest Mega Millions jackpots eclipsed $1 billion, including a $1.6 billion jackpot—the third-largest lottery prize ever in the U.S.—won last year.
Big Number
16.2 million. That’s how many non-jackpot-winning tickets have been sold since the Mega Millions jackpot was last won in December. Of these, 26 won $1 million or more.
What To Watch For
Mega Millions will hold its next drawing at 11 p.m. EST on Tuesday. Powerball will hold its next drawing Saturday night for a $443 million jackpot. That prize includes a $212.3 million lump sum option, which is reduced to $161.3 million after a 24% federal tax withholding or to $112.4 million with a federal marginal rate as high as 37%.
Key Background
All of the top 10 largest lottery jackpots have been won over the last eight years, including five over the last three years. The Mega Millions and Powerball lotteries implemented rule changes in 2017, which increased the pool of white balls to choose from. Because of this, larger jackpots could accumulate for longer periods as the odds of winning were decreased.
Further Reading
Here’s Why There Have Been So Many Massive Jackpots Recently (Forbes)
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