Mega Millions Cash Payout & Tax Calculator
Explore how federal withholding and estimated taxes could affect your lump-sum prize.
Your cash payout estimate
Estimate the Mega Millions lump-sum payout after tax. Compare the cash option with the initial payment after withholding, then see the estimated federal, state and local taxes attributable to your prize.
Estimated cash kept after tax
Withholding is a payment towards tax. It is not deducted again from this final estimate.
Where the cash option goes
Tax and withholding breakdown
| Item | Estimate |
|---|
Federal prize tax is the difference between ordinary federal income tax with and without the prize, after the same deductions. State/local tax uses flat effective rates entered above. Credits, alternative minimum tax, deduction limits or phase-outs, gambling losses, and cross-state tax credits are excluded. Rounded figures may differ by $1.
Mega Millions payout and tax questions
Is the cash option the advertised jackpot?
No. The advertised jackpot reflects the annuity option. Use the separately published cash option for a lump-sum calculation. The demonstration presets use 50%; the actual ratio varies.
Is 24% the final federal tax?
No. Regular federal lottery withholding generally applies at 24% when winnings minus the wager exceed $5,000. Final federal income tax depends on your circumstances and progressive tax brackets. This tool treats the gross jackpot cash payment as the withholding base and ignores the small ticket-cost adjustment.
Why can more tax be due after withholding?
The amount withheld may be less than the estimated final tax. The calculation credits withholding against estimated tax and shows the remaining amount to reserve, or an estimated excess of withholding. It is a prize-only estimate, not your complete tax return or a guaranteed refund.
Which state rate should I enter?
Use an effective rate applicable to your prize after checking the state where the ticket was bought and your state of residence. Local taxes may also apply. Residency rules and credits can change the result; do not simply add two states’ headline rates.
Can a UK resident use this tax estimate?
This version models US individual taxpayers only. Foreign-person withholding and treaty relief require separate treatment. Do not use these results as a UK or other nonresident estimate.
How this calculator works
Which federal rates does it use?
The calculator uses 2026 ordinary-income brackets for single and married-filing-jointly taxpayers, with rates from 10% to 37%. The basic standard deduction is prefilled; you can replace it. Rates do not update automatically each year.
Are the jackpot presets live?
No. They are examples. Selecting a preset resets the demonstration cash value to 50% of the jackpot. Replace it with the published cash value before assessing a real draw.
Does it include annuity payments?
This page estimates a cash payout only. Annual annuity payments belong in a separate cash-versus-annuity comparison.
Sources: Mega Millions FAQs · IRS lottery withholding instructions · IRS 2026 federal rates. Reviewed 5 October 2026.