Updated August 9, 2023, 04:08 am EDT
A ticket sold in Florida won the $1.58 billion Mega Millions jackpot on Wednesday—the second-largest lottery prize won by an individual in U.S. history—though the final amount the winner takes home will be much smaller after taxes and other deductions. are taken into account.
MegaMillions announced that the winning ticket sold in Florida was the only one in the country that matched the six numbers drawn Tuesday night.
The winning ticket holder can choose between receiving a record payout of $1.58 billion over 30 annual installments or a total of $783.3 million—often the most popular choice.
The lump sum payment will first face a mandatory federal withholding tax of 24%, netting the winner $595.3 million.
Depending on the winner’s taxable income, they could face a federal marginal rate of up to 37%, reducing their winnings to about $493.5 million.
Choosing the installment route would reduce the winner’s annual payments by approximately $52.6 million to $33.1 million using a 37% federal marginal rate.
Florida is one of 14 states that does not tax lottery winnings.
This is the largest Mega Millions jackpot in history, beating the previous record of $1.537 billion set in 2018. Among all U.S. jackpots, it’s the third-largest, behind last year’s $2.04 billion Powerball jackpot won by a ticket holder in California and $1.586. In 2016 the billion jackpot was split between three ticket winners in California, Florida and Tennessee.
1-in-302.6 million. Those are astronomical odds that Tuesday’s winner must overcome to hit the jackpot. The Powerball jackpot offers slightly better but still poor odds of 292.2 million on 1. Over the past decade, Mega Millions and Powerball have both changed their formula and worsened a player’s chances of winning while increasing the jackpot amount.
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