While the advertised prize is $820 million, here’s how much you’d actually walk away with if you win.
If you didn’t win the $1 billion Powerball jackpot last week, you still have a chance to become a big winner with the Mega Millions jackpot, which currently stands at $820 million.
The current jackpot is the fifth largest in the game’s history, but how much of the money will go to the winner?
Should you win the Mega Millions jackpot, you’ll choose between a lump sum cash payment (currently estimated at $422 million), or the annuity option, which is one immediate payment followed by 29 annual payments that grow by 5% each time. The same goes for Powerball.
Regardless of the payout you choose, you’ll still see your prize decrease thanks to taxes.
Every state lottery is required by law to withhold 24% in federal taxes automatically on any winnings over $5,000 in Mega Millions, Powerball, or any lottery game, according to the California Lottery Winner’s Handbook.
