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If you hit the $227 million Mega Millions jackpot, here’s what you’ll pay in taxes

Source: https://cnbc.com/2019/09/20/what-you-pay-in-taxes-if-you-hit-211-million-mega-millions-jackpot.html - Sep 23, 2019

With no tickets matching all six numbers in Friday night’s Mega Millions drawing, the jackpot has climbed to $227 million.

Yet before you start counting all the ways you’d use the money if you’re lucky enough to win, remember that a hefty chunk of the bonanza would go to Uncle Sam.

Whether you take the prize as an annuity spread out over three decades or as an immediate, reduced lump sum, 24% is withheld for federal taxes. However, the top marginal tax rate of 37% means owing a lot more to the IRS at tax time. State taxes typically are due, as well.

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Category: General Business