A single ticketholder from New Jersey won the $1.13 billion Mega Millions jackpot—the biggest lottery prize of the year so far—although they will take home a significantly smaller amount after paying their taxes.
Mega Millions said the ticket sold in New Jersey was the only one to match all six numbers drawn on Tuesday night: 7, 11, 22, 29 and 38, and the gold Mega Ball 4.|
The winner will now get to pick between receiving the $1.13 billion payout spread across 30 annual payments in 29 years or a lump sum cash prize of $537.5 million—usually the popular pick among winners.
The cash prize will drop to $408.5 million after a mandatory federal tax withholding of 24% is deducted.
Depending on their taxable income, the winner will then face a federal marginal rate as high as 37%, which would further slash their winnings to $338.62 million.
If the winner chooses the installment route, their annual payments of $37.6 million would drop to $23.7 million if the 37% federal marginal rate is applied.
New Jersey also withholds 8% of all lottery winnings above $500,000.
The lucky ticket holder had to overcome abysmal odds of 1-in-302.6 million to win the Mega Millions jackpot. These odds are even worse than the Powerball jackpot’s already terrible odds of 1-in-292.2 million.
$1.602 billion. That is the biggest Mega Millions jackpot in history, won in August last year by a ticketholder from Florida. Tuesday’s prize is the fifth largest in the game’s history and its sixth billion-plus dollar prize.
On Wednesday night, the Powerball lottery will hold a draw for a $865 million jackpot. If a winner is found, they will take home the biggest Powerball prize and second-biggest overall lottery prize of the year so far.
Powerball Jackpot Hits $865 Million—Here’s How Much A Winner Could Take Home After Taxes (Forbes)
