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A Mega Millions ticket purchased in Georgia has hit the jackpot, securing a $980 million prize—making it the eighth-largest in the game’s history since its inception in 2002. However, the fortunate ticket holder will need to navigate a significant tax obligation.
The winning numbers for Friday night’s draw were 1, 8, 11, 12, 57, and the gold Mega Ball 7. This winning ticket was sold at a Publix store in Newnan.
Since the last Mega Millions jackpot was claimed for $348 million in Virginia back in June, the prize pot has been accumulating steadily.
The winner has the choice between receiving the full $980 million in 30 annual payments or opting for a one-time cash payout of $452.2 million—a choice many winners tend to prefer.
Opting for the cash option will see the prize amount reduced to approximately $343.7 million after a mandatory federal withholding tax of 24% is deducted.
Further taxation could reduce the winnings even more, as the winner’s taxable income might place them in the highest federal tax bracket, which is 37%. This could potentially lower the final prize to about $284.9 million.
The winner would likely face a federal marginal rate as high as 37%, depending on their taxable income, further reducing the winnings to around $284.9 million.
If the installment route is chosen, the winner’s annual payments of around $32.6 million would fall to $20.5 million annually based on the current 37% top federal income tax rate.
Georgia taxes lottery winnings as ordinary income, and the state has a flat income tax rate of 5.19%, meaning the winner would also end up owing just under $23.5 million in taxes on the jackpot’s lump sum.
In all, if the winner takes the lump sum, they will likely end up taking home around $261.4 million after paying $190.8 million in taxes.
Big Number
1 in 290.5 million. Those were the odds of matching all six numbers.
