Dec 21, 2024,10:02am
Mega Millions Jackpot Reaches $944 Million for Christmas Eve: Here’s the Real Payout After Taxes
Headline
The Mega Millions jackpot has climbed to an estimated $944 million for the Christmas Eve drawing, making it the seventh-largest prize in the lottery’s history. However, after taxes, the lucky winner—who faces one-in-302-million odds—will take home significantly less than the advertised amount.
Key Facts
Prize Options: The winner can choose between 30 annual installments averaging $19.8 million or a one-time lump sum of $429.4 million.
Federal Taxes: A mandatory 24% federal tax withholding reduces the lump sum to $326.3 million, while a maximum federal marginal tax rate of 37% could lower it further to $270.5 million.
State Taxes: Additional state taxes vary, with rates as high as 10.9% in New York (a $46.8 million deduction) and as low as 2.5% in Arizona (a $10.7 million deduction). States like California and Texas don’t tax lottery winnings.
Non-Jackpot Wins: In Friday’s drawing, over 2 million tickets won smaller prizes, including five that matched all five white balls for $1 million each.
What To Watch For
The next Mega Millions drawing takes place Tuesday night. Powerball will also hold its next draw on Saturday, offering an $88 million jackpot. The Powerball’s lump sum option of $40.2 million would shrink to $30.5 million after a 24% federal withholding or $25.3 million with a 37% marginal tax rate.
Surprising Fact
The $944 million jackpot is the seventh-largest in Mega Millions history. The lottery’s record jackpot, $1.6 billion, was won in 2022. Only once has the Mega Millions jackpot been won on Christmas Eve—in 2002, with a $68 million prize that went unclaimed.
Big Number
2 million—That’s how many non-jackpot-winning tickets were drawn on Friday, including five tickets that won $1 million each.
Key Background
In October, Mega Millions introduced rule changes designed to create “bigger jackpots” and “better odds.” Adjustments included reducing the number of “megaballs” in play, improving odds from one-in-25 to one-in-24, and increasing the starting jackpot. The changes also eliminated break-even prizes, ensuring winners take home at least $10 for matching a “megaball.”
Stay tuned for updates on the jackpot and remember to play responsibly.