You won Mega Millions jackpot but do not live in the United States? In that case, the Mega Millions taxes rate will be: 30% federal rate + state taxes + local taxes from the country in which you reside. This is because it all depends where you buy your Mega Millions ticket.
See below all the details about Mega Millions taxes.
Do Australians have to pay tax on Mega Millions winnings?
Lottery winnings, including Mega Millions, are not taxed in Australia. However, Australians that become Mega Millions winners are still subject to income tax in the States, both federal and state taxes combined.
How are Mega Millions taxes calculated?
Once you win a Mega Millions prize, the federal government takes 24 to 30% of the winnings.
- 24% if you live in the States
- 30% if you do not live in the States
You will then owe the rest of the tax to the IRS as every American state has its own taxing rates.
When you do not live in the States, you may have to add local taxing to the mentionned above. Don’t forget: to win you need to play Mega Millions first.
When do you start paying taxes on American lottery prizes?
Wether you pay taxes on lottery winnings all depends on the amount that you win:
- You win USD 599,99 or less – You do not have to pay taxes on your lottery winnings in the United States, resident or not.
- You win USD 600 or more – You must pay the federal rate first (24% for residents and 30% for non-residents) to which you have to consider there might be a state or city tax to add.
What are the state taxes on Mega Millions?
After paying the federal taxes you also have to pay state taxes. These can range anywhere between 0 and 10.9%. As their name indicates it, they are the taxes you pay according to where your winning ticket was purchased. If you bought your ticket in Wyoming for instance, you don’t have to pay any state tax.
Find out about all state taxes in Mega Millions prizes over USD 600 right below in our interactive map – the darker the color, the more taxes you will pay on your Mega Millions winnings.
Find out more details about state taxes in the table below:
| State | Tax |
|---|---|
| Arizona | 4.8% for residents |
| 6% for non-residents | |
| Arkansas | 5.9% |
| California | – |
| Colorado | 4% |
| Connecticut | 6.99% |
| Delaware | – |
| Florida | – |
| Georgia | 5.75% |
| Idaho | 6.925% |
| Illinois | 4.95% |
| Indiana | 3.23% |
| Iowa | 5% |
| Kansas | 5% |
| Kentucky | 5% |
| Louisiana | 5% |
| Maine | 5% |
| Maryland | 8.95% for residents |
| 8% for non-residents | |
| Massachusetts | 5% |
| Michigan | 4.25% |
| Minnesota | 7.25% |
| Mississippi | 3% – 5% |
| Missouri | 4% |
| Montana | 6.9% |
| Nebraska | 5% |
| New Hampshire | – |
| New Jersey | 5% – 8% |
| New Mexico | 6% |
| New York | 10.9% |
| North Carolina | 5.5% |
| North Dakota | 2.9% |
| Ohio | 4% |
| Oklahoma | 4% |
| Oregon | 8% |
| Pennsylvania | 3.07% |
| Puerto Rico | – |
| Rhode Island | 5.99% |
| South Carolina | 7% |
| South Dakota | – |
| Tennessee | – |
| Texas | – |
| Vermont | 6% |
| Virginia | 4% |
| Washington | – |
| Washington, D.C. | 8.5% |
| West Virginia | 6.5% |
| Wisconsin | 7.65% |
| Wyoming | – |
As you can see, few states such as California, Florida, New Hampshire or Texas do not add any state tax on lottery winnings. This means that if you win in any of these states, you will only have to pay 24% to the IRS, if you live in the States, or 30% if you don’t live in the Sates.
How is a Mega Millions jackpot taxed according to how you choose to collect it?
Once you’ve checked Mega Millions results and found out you scooped the jackpot, you will realized you have 2 choices on how you can collect your prize. Obviously, this means different taxes. Find out all about how to collect your Mega Millions jackpot:
Lump sum payment
You receive your prize in a single payment known as the “Cash Value”. This lump sum payment will be the taxed according to what we mentioned above: 24% for residents or 30% for non-residents of federal taxes to the IRS + state taxes (+ local taxes if you don’t live in the States but in a country that taxes lottery winnings).
Annuity
You receive your money in 30 installments over 29 years. Taxes are recalculated every year as it is possible that the states recalculate their fees, due to inflation – among other variables. With this option, there is no way to know in advance how much you will end up paying as Mega Millions taxes.
Mega Millions Taxes FAQ
Not if you win less than USD 599.99.
However, if you win over USD 599.99! You will have to pay federal + state taxes.
Moreover, you will have to pay a larger federal tax if you are not residing in the States (30% instead of 24%). You may also have to pay a larger state tax depending on where your Mega Millions ticket was purchased.
If you win online on TheLotter, you will receive your prize (if it doesn’t exceed USD 599.99) on your personal account directly. However, if you scoop a big jackpot, a 30% federal tax will be applicable as well as a state tax + local tax. Our team will help you through the process.
If you win over USD 599.99 at the Mega Millions lottery, you will have to pay taxes, both federal & state. The US federal taxing on lottery winnings amounts to 24% for US residents and 30 % for non-residents.