The jackpot is tied for the fourth-largest in the lottery’s history, trailing a $1.3 billion jackpot won last year.
Topline
The Mega Millions jackpot jumped to an estimated $1.05 billion for its next drawing on Tuesday, tying the lottery’s mark for its fourth-largest prize ever—-though the winner could receive less than half that amount after paying required taxes.Key Facts
The winning ticket holder—who faces odds of 1 in 302.6 million—has the option to receive the $1.05 billion in 30 annual payments over 29 years, or as an up-front lump sum of $527.9 million.
A 24% federal tax withholding would reduce the lump-sum jackpot to $401.2 million, and a federal marginal tax rate as high as 37%—depending on the winner’s taxable income—could cut the winnings down to $332.
