Mega Millions big stake climbs to $1.15 billion

Mega Millions big stake climbs to $1.15 billion — here are 8 states where your prize won’t be taxed. While an programmed 24% is withheld forthright, you would nearly certainly owe a add up to of 37% when you record your 2024 assess return.

The Mega Millions big stake has climbed to $1.15 billion ahead of Friday’s drawing, making it the fifth-largest prize in the game’s history.

But how much you would really take domestic seem be less than half that, depending both on your choice of payout and how much you would owe in government and state taxes.

Everyone owes government charges on lottery rewards. Whereas an programmed 24% is withheld forthright, you would nearly certainly owe a add up to of 37% when recording your 2024 charge return, as winning a billion dollars would put you in the beat assess bracket.

State charges on lottery rewards in the U.S. by and large run from 3% to 6%, with Unused York forcing the most elevated rate at 10.9%. Be that as it may, eight states don’t assess lottery rewards at all:

California

Florida

New Hampshire

South Dakota

Tennessee

Texas

Washington

Wyoming

If you live in any of these states, you will take domestic the greatest payout. That works out to $325,184,812 as a cash protuberance entirety, or a 30-year annuity totaling $725,754,360, agreeing to usamega.com.

While the cash payout is much less than the annuity, victors ordinarily take the knot entirety since they get more cash right away.

Compared with the charges you might pay in the state of Unused York, that’s a distinction of $125,349,990 for the annuity and $56,254,900 for the cash protuberance sum.

Where you purchase the ticket too things, as a winning ticket obtained out of state may be subject to that state’s charges. In most cases, your domestic state will require you to report out-of-state rewards but will ordinarily offer you a credit or conclusion for charges paid to the other state.

State lottery charge laws change, so if you win a lottery prize in a state other than your possess, counsel a assess proficient. They can moreover offer assistance you decide the best payout choice based on your budgetary goals.

The following Mega Millions drawing is Friday, December 27, 2024, at 11 p.m. ET.

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