The Mega Millions jackpot has risen to $575 million, and experts estimate that after taxes the winner could walk away with roughly $165 million.
Under U.S. tax rules, lottery winnings are taxed as ordinary income. The IRS requires a minimum 24 percent federal withholding up front, and the winner may owe additional federal taxes that push the total rate toward 37 percent.
In the lump-sum option, the full advertised jackpot is reduced before taxes and fees. For the $575 million prize, the estimated cash value is about $264.6 million before any deductions.
From that pre-tax cash amount, after mandatory federal withholding and state taxes (which vary depending on which state the ticket is claimed), the nets vary. In no-income-tax states, the take-home could be about $166.7 million.
If the winner chooses the annuity option instead, payments are spread over 30 years, and taxes are applied on each installment. That approach may yield a higher total sum after taxes but delays access to the full amount.
For any winner, the final amount depends heavily on their state tax rate, status, deductions, and decisions. This $165 million figure is an estimate and assumes no extraordinary deductions or additional levies.
