Payment Options

You may notice that there is no Payment Option choice on your MEGA Millions playslip.  By default all MEGA Millions jackpots are paid in 26 equal annual installments.  A winner has the opportunity to choose the cash value of their jackpot prize within 60 days of the Lottery's payment approval date.  The payment option chosen will apply to all claimants in a multiple ownership claim.

Cash Option
If you select the Cash Option, you will receive an amount equal to the net proceeds of the sale of bonds purchased to fund the 26 annual payments for that prize. This will be a single lump sum payment and is estimated at 45% to 55% of the estimated jackpot amount.

Annual payments.
By default jackpot winners will receive the annual payments option, you'll receive the MEGA Millions jackpot in 26 equal annual payments.

Taxes.
There is no state tax on Lottery winnings. If you choose "Cash Value," federal tax will be withheld from your winnings at the rate of 25% for US citizens and 30% for all others.  If you choose the "Annual Payment" option you will be responsible for paying federal tax on an annual basis and the rate will vary year to year.