How Much Will Mega Millions Jackpot Winner Owe In Taxes?


The Mega Millions jackpot worth a billion-dollar has been finally claimed in Illinois. The ticket was bought at a Speedway gas station located in Des Plaines.

How much will winner get?

An important question is how much of the jackpot will get to the winner’s pocket, and what part of this amount will be owed in form of taxes?

The tax bill is dependent on whether the winner of the Mega Millions goes for annual payments that total up to $1.3 billion over twenty nine years or chooses a cash payout worth $780.5 million.

Illinois presently withholds 24% in terms federal taxes, and about 5% in state income taxes, nonetheless this might not be the whole tax obligation, contingent to the financial situation of the winner.

The cash out option

If the winner chooses to pick the $780.5 million as cash payout, the withheld federal taxes will be around $187.3 million. The state taxes should be around $38.6 million. This means he would take home an estimated payout of $554.6 million.

Annual installments

On the other hand, if the winner decides to take the $1.337 billion in form of annual installments and tax rates do not alter over the coming twenty nine years, an assessed $320.9 million as federal taxes, and $66.2 in state taxes should be withheld. This would mean a payout of $949.9 million during 29 years.

Although, a much popular option is the cash payout, the annuity payments in this option are each 5% greater than the previous one.

This Mega Millions jackpot has been one of the greatest ever. The previous was the 2018 South Carolina jackpot where the winner claimed $1.537 billion.

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