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Cutting your state in on its share of a nearly $700 million Mega Millions cash value option might be the happiest tab you ever paid.
But what if your state or jurisdiction doesn’t levy its own taxes on what turned out to be a $1.34 billion jackpot on July 29?
If you’re asking yourself what the taxes on Mega Millions are, well the answer varies depending on where you live. There are different rules for different states and we break down Mega Millions tax laws for each state right here.
If you are a resident of Alabama, Alaska, California, Delaware, Florida, Hawaii, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Utah, Washington, or Wyoming, your smile is going to be even wider when you spot the winning numbers on your ticket (if you are still conscious). These are the states that don’t make Mega Millions winners pay taxes.
At the other end of the spectrum, if you live in the District of Columbia … ouch. D.C. takes 10.75% of Mega Millions jackpots, the highest state tax on winnings in the nation. And that’s after the Internal Revenue Service takes 24-37%.
As for the July 29 drawing, the jackpot-winning ticket was purchased in a Des Plaines, Illinois gas station. The 4.95% the winner will fork over is pretty reasonable compared to many states.
An interesting potential note about the winning slip: it was purchased at a gas station very close to O’Hare International Airport. What if it was bought by a traveler gassing up to drop off a rental car before a flight?
In most cases with large jackpots, the state where the ticket was purchased gets its share before anything is paid out and the home state of the resident doesn’t tax the remainder again.
Mega Millions Taxes: State Tax Rates on Jackpot Winnings
- Washington, D.C.: 10.75%
- Maryland: 8.95%
- New York: 8.82%
- New Jersey: 8%
- Oregon: 8%
- Wisconsin: 7.65%
- Minnesota: 7.25%
- South Carolina: 7%
- Connecticut: 6.99%
- Montana: 6.90%
- Idaho: 6.50%
- West Virginia: 6.50%
- Vermont: 6%
- Rhode Island: 5.99%
- New Mexico: 5.90%
- Georgia: 5.75%
- Arkansas: 5.50%
- Iowa: 5%
- Kansas: 5%
- Kentucky: 5%
- Maine: 5%
- Massachusetts: 5%
- Mississippi: 5%
- Nebraska: 5%
- North Carolina: 4.99%
- Illinois: 4.95%
- Ohio: 4.80%
- Louisiana: 4.75%
- Oklahoma: 4.75%
- Arizona: 4.50%
- Michigan: 4.25%
- Colorado: 4%
- Missouri: 4%
- Virginia: 4%
- Indiana: 3.23%
- Pennsylvania: 3.07%
- North Dakota: 2.90%
Mega Millions’ July 29 Drawing is (at Least) The Second-Richest Ever
The July 29 pot would be the second-largest in the history of the world if won with a single ticket. It would be surpassed only by an October 2018 trove of $1.537 billion, won with a ticket purchased in South Carolina. The state would have taken 7% of the winner’s haul.
Mega Millions: Odds of Winning
The odds of winning the jackpot are 1 in 303 million, according to Mega Millions. Tickets are sold in 45 states, Washington, D.C., and the U.S. Virgin Islands.
Mega Millions drawing are held on Tuesdays and Fridays. According to a press release, 29 drawings have been held since the last winning ticket was purchased in Tennessee on April 15. Since then, according to Mega Millions, “there have been more than 28.1 million winning tickets at all prize levels, including 42 worth $1 million or more. Those big prizes have been won in 17 states across the country: Arizona, Arkansas, California, Delaware, Florida, Georgia, Illinois, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Texas and Virginia.
Maybe your state is due. Probably like your tax bill.
