Topline
The Mega Millions jackpot surpassed $1 billion after no winning ticket was claimed Friday night, Mega Millions announced Saturday morning, making it the fifth-largest jackpot of all time, although a winner would walk away with far less after taxes.
The Mega Millions jackpot reached an astounding $1.1 billion after no winning ticket was claimed … [+]
Key Facts
The jackpot increased to $1.1 billion, Mega Millions announced on Saturday, after no ticket matched the six numbers (3, 20, 46, 59 and 63, and the Mega Ball number 13), making it the fourth time in just over four years that the jackpot has topped $1 billion.
The jackpot also passed a $1.05 billion Mega Millions jackpot won in January 2021 for the fifth spot of all time.
If a ticket matches the six numbers on the next drawing on Tuesday, however, the winner would walk away with less than half of the total jackpot amount, however, after taxes are taken into consideration.
The winner has the option to take the money either in 30 installments over 29 years or as a lump sum of $568.7 million—a significantly more popular option.
The winner would then face a mandatory 24% federal tax withholding to the IRS, reducing the prize money to $432.2 million, plus a federal marginal rate as high as 37%, which would cut it to as low as $358.3 million, if the winner has no additional income, dependents or tax deductions including charitable contributions.
Big Number
$2.04 billion. That’s how high the Powerball jackpot reached in November—the biggest of all time—with one winner getting $628 million in a cash lump sum after federal taxes. The second biggest came in October 2018 ($1.537 billion)—a Mega Millions jackpot that was claimed by just one person. Last September, two people claimed a $1.337 billion Mega Millions jackpot in Illinois, splitting a $780.5 million pre-tax cash lump-sum.
Surprising Fact
Five tickets in Friday’s drawing matched all five white balls in the Mega Millions but didn’t match the gold ball number—still enough for a second-place $1 million prize. Two of those tickets were sold in New York, with three others coming from Florida, Maryland and New Jersey. The odds of winning the whole thing: one in 302.5 million, according to the Mega Millions. Tickets that match four white balls plus the gold ball (one in 931,001 odds) win $10,000, while those that match four white balls without the gold ball (one in 38,792) win $500.
Further Reading
Mega Millions Jackpot Rises To $940 Million—Here’s How Much The Winner Would Take Home After Taxes (Forbes)
Mega Millions jackpot tops $1 billion after Friday’s drawing yields no winners (CNN)
Source: https://www.forbes.com/sites/brianbushard/2023/01/07/mega-millions-jackpot-reaches-11-billion-fifth-biggest-jackpot-ever-heres-what-the-winner-would-receive-after-taxes/