Here’s How Much Taxes the Mega Millions Winner Will Pay on $980 Million Jackpot

Here’s How Much Taxes the Mega Millions Winner Will Pay on $980 Million Jackpot

The Mega Millions winner on Friday night was given the option to choose between a one-time cash bonanza of $453.6 million or an annuitized payout of $980 million distributed over 30 years. Large tax costs accompany the wealth that changes generations.

Mega Millions revealed that the eighth-largest reward in the history of the game was won by a single ticket sold in Georgia for the Friday, November 14 drawing that matched the five white balls and the gold Mega Ball.

Since Mega Millions underwent a significant gameplay upgrade earlier this year, the $980 million prize represents the largest payment to date. The formerly optional $1 Megaplier is now included with every ticket, however the base fee to play was increased from $2 to $5. The odds of winning the jackpot were reduced from one in 302.2 million to one in 290.4 million by the removal of one gold Mega Ball.

"$983 million is the largest jackpot that’s been won since the Mega Millions game changed back in April,” said Joshua Johnston, lead director for the Mega Millions Consortium. “Congratulations to our big winner from Georgia and to all our players who are winning more than ever with this new version of the game.”

In addition to the gold Mega Ball 7, the winning numbers were 1, 8, 11, 12, and 57.

The tax bill

The winning Mega Millions ticket, according to the Georgia Lottery, was purchased at a Publix supermarket located at 4000 N. Highway 29 in Newman. About 30 miles southwest of Atlanta is the town. By choosing the Quik Pik option, the player selected the numbers.

“We are thrilled to congratulate the largest winner in our state’s history,” said Georgia Lottery President and CEO Gretchen Corbin. “With every Mega Millions ticket sold in Georgia supporting HOPE and Pre-K, Georgia’s students and families are also big winners. We appreciate our players and retailers for their support of our mission.”

The winner on Friday will make a substantial contribution to the goal of public education. Most states tax lottery winnings as personal income, including Georgia.

The Mega Millions funds are subject to the basic individual income tax of 5.19% in the Peach State. The federal government lowers the annual distribution by 37% if the winner decides to accept the entire amount offered through the annuity. The annual payment is reduced from $32.7 million to $20.6 million as a result. The annuity payment is reduced by an additional $1.7 million once Georgia deducts its share, resulting in a net payout of roughly $18.9 million. The winner would collect $567.8 million over the course of 30 years.

The $453.6 million would be lowered to $284.92 million after federal taxes of $167.8 million if the winner chooses to make the one-time payment. The net payout is $261.1 million after Georgia's $23.5 million charge.

Georgia Lottery Earnings 

One of the most popular lottery possibilities in the US is in Georgia. The lottery's Atlanta studios draw the Mega Millions on Tuesdays and Fridays.

The Georgia Lottery has made $30 billion in contributions to the Peach State's public education system since its establishment in 1992.