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 winner of Friday night's Mega Millions will have the option of either a $453.6 million one-time cash bonanza or an annuitized jackpot of $980 million spread over 30 years.  Large tax costs accompany the generation-changing wealth.

A single ticket purchased in Georgia for the drawing on Friday, November 14, matched the five white balls and the gold Mega Ball to win the eighth-largest reward in the history of the game, according to Mega Millions.

Since Mega Millions underwent a significant gameplay change earlier this year, the $980 million jackpot represents the largest payout.  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.

Tax Bill

The winning Mega Millions ticket was sold at a Publix supermarket at 4000 N. Highway 29 in Newman, according to the Georgia Lottery.  The town is located about thirty miles to the southwest of Atlanta.  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 5.19% flat individual income tax in the Peach State.  The federal government lowers the annual distribution by 37% if the winner decides to receive the entire amount paid through the annuity.  As a result, the annual check drops from $32.7 million to $20.6 million.  The annuity payment is reduced by an additional $1.7 million once Georgia gets its portion, resulting in a net payout of roughly $18.9 million.  The winner would get $567.8 million over the course of 30 years.

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

Proceeds from the Georgia Lottery

Georgia offers some of the most lucrative lottery opportunities in the country.  Tuesdays and Fridays are when Mega Millions is drawn from the lottery's Atlanta studios.

The Georgia Lottery has funded public education in the Peach State with $30 billion since its founding in 1992.