Mega Millions Jackpot Hits $900 Million. Here's What You'd Actually Get

The Mega Millions jackpot climbed to $900 million ahead of Friday night's drawing. Nobody's won since June 27, so the prize keeps growing. Now it's the eighth-largest in the game's history.

Your odds of winning? One in 290,472,336. But sure, someone's got to win eventually.

The jackpot sits at $900 million if you take the 30-year annuity—basically getting paid in installments over three decades. Take the lump sum and you get about 46% of that upfront. Most winners choose the lump sum to invest the money immediately rather than waiting 30 years for full payment.

Then taxes demolish whatever's left.

How the Taxes Work

The IRS automatically withholds 24% of lottery winnings. But with a jackpot this size, you're getting pushed into the 37% federal tax bracket when you file. That's the top rate, and it applies to basically anyone winning hundreds of millions.

Most states that participate in the lottery also tax winnings, typically 4% to 6%. Some states don't tax lottery winnings at all. Others take a bigger cut.

Based on the top federal rate of 37%, here's what you'd actually take home in each state, according to USAMega.com.

Best States for Lottery Winners

California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming: No state income tax on lottery winnings. Lump sum gets you $261.7 million after federal taxes. Annuity pays $568.3 million total over 30 years.

These states let you keep the most money because they don't add their own tax on top of the federal cut.

Worst States for Lottery Winners

New York: Lump sum $216.4 million, annuity $470.2 million. New York takes a massive chunk in state taxes on top of federal.

New Jersey and D.C.: Both land you $217 million lump sum, $471.5 million annuity. Heavy state/local taxes eat into winnings significantly.

Maryland: Lump sum $222.2 million, annuity $482.8 million. Another state that taxes lottery winnings aggressively.

The difference between winning in California versus New York? About $45 million on the lump sum. Same jackpot, different tax treatment, millions less in your pocket.

Everywhere Else Falls In Between

Most states land somewhere in the middle. Here's a sampling:

Missouri: Lump sum $242.2 million, annuity $526 million.

Illinois: Lump sum $241.1 million, annuity $523.7 million.

Georgia: Lump sum $240.1 million, annuity $521.6 million.

Pennsylvania: Lump sum $248.9 million, annuity $540.7 million.

State tax rates vary from around 2% to over 8%, which explains the massive spread in take-home amounts depending on where you bought the winning ticket.

Lump Sum vs. Annuity

The advertised $900 million jackpot assumes you take the annuity—30 annual payments over three decades. Sounds great until you realize inflation will eat into those future payments and you're trusting the lottery system to still exist and function properly 30 years from now.

Take the lump sum and you get roughly $414 million before taxes. After federal taxes hit, that drops to around $261 million in states with no income tax. In high-tax states, you're looking at $216 million to $220 million.

Yes, this is still life-changing money. It’s just significantly less than the $900 million headline screaming from every billboard and gas station.

The Reality Check

A $900 million jackpot sounds incredible. After taxes, you're taking home between $216 million and $262 million as a lump sum depending on your state. That's 24% to 29% of the advertised amount.

The annuity pays more over time but requires waiting 30 years for full payout. Most winners choose the lump sum despite it being worth less than half the advertised jackpot. Can't blame them—$250 million now beats uncertain future payments.

This is the eighth-largest Mega Millions jackpot ever. The top prize hit $1.602 billion in Florida back in August 2023. That winner took home around $794 million after taxes with the lump sum. Still the biggest verified payout in lottery history.

The current $900 million jackpot ranks behind several other massive prizes from recent years. Lottery jackpots have been climbing higher as changes to the game made winning even harder, which means prizes roll over more often and grow larger before someone finally wins.

Should You Play?

Your odds remain one in 290 million regardless of jackpot size. Buying a ticket is mathematically a terrible investment. The expected value is always negative—you'll lose money on average.

But people aren't playing for expected value. They're paying $2 for the brief fantasy of never working again. As entertainment expenses go, there are worse ways to spend two bucks.

Just don't expect to win. And if you somehow do win, don't expect to take home anywhere near $900 million. Expect to take home about a quarter of that after taxes turn your "life-changing jackpot" into a "still really large but significantly less impressive pile of money."

Friday's drawing happens at 11 p.m. ET.

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