What is $1.35 billion after taxes? What you pay if you win Mega Millions


One winning ticket for the Mega Millions jackpot – a prize of $1.35 billion – was sold in Maine on Friday and tax officials are probably just as excited as the ticket holder.

Depending on choice of payout, the winner may have to wait three decades to become a billionaire, even though the jackpot is the second-largest in the lottery’s history. It’s also the fourth time since October 2018 that winnings have exceeded $1 billion.

The sole winner, however, won’t take home any money without paying substantial taxes on it first. Winnings are reported to federal and state tax agencies, and tax rates are based on taxable income.

The winner can choose to take the full amount in annual payments over 29 years or a smaller lump sum immediately in cash.

What to know if you hit the jackpot: Here are the first steps you should take after winning.

How much tax on a $1.35 billion lottery win?

The single winner could take the total $1.35 billion in 30 payments over 29 years or go for the one-time cash option ­– in this case, $707.9 million – which is what most winners choose.


About Shikha Panday

Meet Shikha Panday - a passionate and experienced blogger with a knack for delivering the latest and most helpful information across a wide range of topics. Catch her work at twodayusa and prepare to be amazed!

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