The $432 million Mega Millions jackpot has a winner. Here’s how much will go to taxes

Whoever has the winning ticket for the $432 million Mega Millions jackpot is soon to find out what a massive tax bill looks like.

In Tuesday night's drawing, a single Mega Millions ticket sold in New York City matched all six numbers to win the top prize. 

While the windfall will be a life-changing windfall, the advertised sum will not be what the recipient receives.

Winners can choose to receive their win as a single sum or as an annuity paid over 30 years. 

The cash option for the $432 million Mega Millions prize, which most people choose, is around $315 million.

 However, before it reaches the winner, 24% of the prize money, or $75.6 million, will be withheld for federal taxes

Due to the current top marginal income tax rate of 37%, more would most likely be due at tax time (April 2022 for 2021 winners). (Be aware that there is a push in Congress to boost that to 39.6%).

Then there are state and municipal taxes to consider. In New York, the winnings would be subject to a 10.9% tax rate, 

mounting to an additional $34.3 million in taxes. Furthermore, New York City receives 3.876% – $12.2 million — for its own coffers.

After taxes, the winner would have approximately $192.9 million, not including any further amounts owed at tax time.

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