Mega Millions $810 million jackpot: Here’s how much you’ll take home after federal, state taxes

Even if there’s a lucky winner of the $810 million Mega Millions jackpot, that still doesn’t mean they’ll be walking away with $810 million.

Federal and sometimes state taxes are removed from the winnings first. However, exactly how much depends on a few factors.

First, the winner has to decide if they want to opt for the annuity or cash option.

For Tuesday’s $810 million prize, annuity would be about 30 average annual payments of $27 million. Of that, there is a 24% federal tax, which equals about $6.48 million, according to usamega.com. Then there’s additional federal taxes, according to the website, which totals another $3,472,955.

Overall, the annuity option is left with $17,047,045 per payment after federal taxes, usamega.com states.

For those interested in choosing the cash option, the prize is $470,100,000. Again, there’s the 24% federal tax to equal about $112,824,000, according to usamega.com. Then the additional federal taxes totals another $61,075,955.

This means, according to usamega.com, the cash option is left with $296,200,045 after federal taxes — or $215,211,305 less than the total payments from the annuity option.

But those aren’t the only taxes taken out of the prize.

Some states, including Massachusetts, also require state taxes to be taken out of the winnings.

In Massachusetts, this is a 5% state tax, the website states.

For annuity, that’s about $1,350,000 in taxes, leaving an average net of $15,697,045 per year — or 470,911,350 total. For the cash option, about $23,505,000 would be taken out for taxes. That leaves about $272,695,045 as the winner’s net payout, usamega.com estimates.

California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming don’t have to pay state taxes on lottery winnings, according to the website.

Washington, D.C, however, has one of the highest with a 10.75% state tax.

The Mega Millions drawing will be at 11 p.m. ET on Tuesday, July 26. Mega Millions tickets are $2 each and can be purchased up until 10:45 p.m. Tuesday at Mass Lottery retailers throughout the state.

There is no broadcast partner in Massachusetts, however. Instead, those interested can see the drawn numbers appear on the Mega Millions website or watch online through the game’s YouTube channel.

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