Mega Millions Jackpot: After Taxes Here’s How Much The Winner Will Take Home

Mega Millions declared that the sole winning ticket purchased in Florida stood as the exclusive nationwide match for all six numbers selected during Tuesday night's draw.

The fortunate ticket possesses the option to opt for either the staggering $1.58 billion historic prize disbursed across 30 yearly payments or a one-time lump sum of $783.3 million, which is typically the favored selection.

The initial lump sum payment will encounter a compulsory federal tax withholding of 24%, resulting in the recipient receiving $595.3 million.

The winner might encounter a federal marginal rate of up to 37% on their taxable income, which could reduce their winnings to approximately $493.5 million.

Opting for the installment method would result in the winner's yearly payments of about $52.6 million decreasing to around $33.1 million after factoring in the 37% federal marginal rate.

Surpassing the prior milestone of $1.537 billion established in 2018, the current Mega Millions jackpot attains the distinction of being the most substantial in its history. In the realm of U.S. lotteries, this jackpot ranks as the third largest. It follows last year's $2.04 billion Powerball prize secured by a sole ticket holder in California and a $1.586 billion jackpot distributed among three ticket victors originating from California, Florida, and Tennessee back in 2016.

There were the staggering odds that the winner on Tuesday had to defy in order to claim the jackpot as the chances of hitting the jackpot are approximated at 1 in 300 million. The Powerball prize presents slightly improved yet still dismal chances at 1 in 292.2 million. Over the last ten years, both Mega Millions and Powerball have adjusted their formulas, further diminishing a player's chances of winning while simultaneously inflating the jackpot sum.