While millions of Americans will be vying for the Mega Millions $340 million jackpot on Friday, no one — not even the person who matches all six numbers — will be bringing home that amount.
Regardless of whether the winner chooses to take payments or a reduced lump sum, 24 percent of the jackpot will be withheld for federal taxes, says April Walker from the American Institute of CPAs. In the case of Friday’s drawing, the lump sum payment will be $230.8 million. Minus the initial government taxation, it drops another $55.4 million. And that’s just the beginning. Come tax time, Uncle Sam will take another 13 percent, which comes out to another $30 million. “There is still a sizable tax bill coming, for sure,” Walker says.
When all is said and done, the $340 million winner will be left with about $145 million, while the government will be $85 million richer.