The Mega Millions jackpot is now $820 million: Here’s how much the winner will get after taxes

In this file photo, a Mega Millions lottery ticket rests on the shop counter at the Street Corner Market in Cincinnati. (AP Photo/John Minchillo, File)

by: Iman Palm

Posted: Jul 24, 2023 / 11:19 AM PDT

Updated: Jul 24, 2023 / 11:19 AM PDT

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Californians who didn’t win the billion dollar Powerball jackpot still have a chance of hitting it big with the Mega Millions jackpot, which currently stands at $820 million.

The next Mega Millions drawing will be on Tuesday and tickets cost $2.

The current jackpot is the fifth largest in the game’s history, but how much of the money will go to the winner?

After winning a lottery prize, winners can take a lump cash sum or get annuity payments for 30 years.

The California Lottery is required by law to withhold federal taxes, which can vary based on the state the winner lives in. At the very least, the lottery office is required to withhold 24% of the prize money for federal taxes, according to the California Lottery Winner’s Handbook.

While there are no state or local tax withholdings on lottery prize money in California, winners may still be responsible for paying other tax obligations, the handbook stated.

In total, about 37% of the prize money will be taken out due to taxes, according to USAMega.com.

If someone wins the Mega Millions jackpot on Tuesday and decides to take the lump sum cash option, they will get over 265 million.

However, if they chose to get the annual payments, they would be paid over $17 million for the next 30 years, equivalent to a $517,711,350 payout, according to the lottery finance website.

The default payout method for Powerball, Mega Millions and Super Lotto Plus drawings is the annual payments, according to the winner’s handbook.

While the chances of winning the jackpot are slim, it’s not entirely impossible. One lucky California Lottery player won the billion-dollar Powerball jackpot on July 19. The winning ticket was sold at Las Palmitas Mini Market located at 1205 Wall Street in downtown L.A. near the Skid Row neighborhood.

The winner’s identity hasn’t been announced, even though one woman seemingly claimed to win the massive jackpot.

For those looking to increase their chances of being the next millionaire, $79 million is up for grabs as the Super Lotto Plus jackpot continues to grow.