Mega Millions after taxes in Tennessee
Mega Millions jackpot $300 million, winner living in Tennessee. Cash option $124.1 million.
You keep about
$78.2 million in cash, single filer
Seventy-eight million two hundred thirty-three thousand and 00/100 dollars
Jackpot data as of Sep 26, 2026, for the Tuesday, Sep 29 drawing.
| Item | Amount | Share of jackpot |
|---|---|---|
| Advertised jackpotSum of 30 annuity payments | $300,000,000 | |
| Cash optionOfficial cash value | $124,100,000 | |
| Federal tax withheld at claim24% of the prize | −$29,784,000 | |
| Federal tax still owed at filingTop bracket is 37% | −$16,083,000 | |
| Tennessee state taxNo state income tax | $0 | |
| You keep26.1% of the advertised jackpot | $78,233,000 |
Tennessee has no personal income tax (the Hall tax on investment income ended in 2021), so lottery winners owe only federal tax.
Lump sum or annuity in Tennessee
| Cash option | Annuity (30 payments) | |
|---|---|---|
| Before tax | $124,100,000 | $300,000,000 |
| Total tax | −$45,867,000 | −$109,500,008 |
| You keep | $78,233,000 | $190,499,993 |
| In today's dollarsannuity discounted at 3% a year | $78,233,000 | $115,367,286 |
| When you get it | All at once | $2.9 million now, then yearly up to $11.8 million |
The annuity keeps $112.3 million more after tax in total but pays it over 29 years; the cash would need to earn 5.71% a year after tax to fund the same payments. How to think about the choice.
The 30 annuity payments
30 payments from $2.9 million to $11.8 million after tax
| Payment | Year | Before tax | Federal | State | After tax |
|---|---|---|---|---|---|
| 1 | 2026 | $4,515,431 | −$1,620,710 | $0 | $2,894,721 |
| 2 | 2027 | $4,741,202 | −$1,704,245 | $0 | $3,036,957 |
| 3 | 2028 | $4,978,262 | −$1,791,957 | $0 | $3,186,305 |
| 4 | 2029 | $5,227,175 | −$1,884,055 | $0 | $3,343,120 |
| 5 | 2030 | $5,488,534 | −$1,980,758 | $0 | $3,507,776 |
| 6 | 2031 | $5,762,961 | −$2,082,296 | $0 | $3,680,665 |
| 7 | 2032 | $6,051,109 | −$2,188,910 | $0 | $3,862,198 |
| 8 | 2033 | $6,353,664 | −$2,300,856 | $0 | $4,052,808 |
| 9 | 2034 | $6,671,347 | −$2,418,399 | $0 | $4,252,949 |
| 10 | 2035 | $7,004,915 | −$2,541,819 | $0 | $4,463,096 |
| 11 | 2036 | $7,355,161 | −$2,671,410 | $0 | $4,683,751 |
| 12 | 2037 | $7,722,919 | −$2,807,480 | $0 | $4,915,438 |
| 13 | 2038 | $8,109,064 | −$2,950,354 | $0 | $5,158,710 |
| 14 | 2039 | $8,514,518 | −$3,100,372 | $0 | $5,414,146 |
| 15 | 2040 | $8,940,244 | −$3,257,890 | $0 | $5,682,353 |
| 16 | 2041 | $9,387,256 | −$3,423,285 | $0 | $5,963,971 |
| 17 | 2042 | $9,856,619 | −$3,596,949 | $0 | $6,259,669 |
| 18 | 2043 | $10,349,449 | −$3,779,297 | $0 | $6,570,153 |
| 19 | 2044 | $10,866,922 | −$3,970,761 | $0 | $6,896,161 |
| 20 | 2045 | $11,410,268 | −$4,171,799 | $0 | $7,238,469 |
| 21 | 2046 | $11,980,781 | −$4,382,889 | $0 | $7,597,892 |
| 22 | 2047 | $12,579,821 | −$4,604,534 | $0 | $7,975,287 |
| 23 | 2048 | $13,208,812 | −$4,837,261 | $0 | $8,371,551 |
| 24 | 2049 | $13,869,252 | −$5,081,624 | $0 | $8,787,629 |
| 25 | 2050 | $14,562,715 | −$5,338,205 | $0 | $9,224,510 |
| 26 | 2051 | $15,290,850 | −$5,607,615 | $0 | $9,683,236 |
| 27 | 2052 | $16,055,393 | −$5,890,496 | $0 | $10,164,897 |
| 28 | 2053 | $16,858,163 | −$6,187,520 | $0 | $10,670,642 |
| 29 | 2054 | $17,701,071 | −$6,499,396 | $0 | $11,201,674 |
| 30 | 2055 | $18,586,124 | −$6,826,866 | $0 | $11,759,258 |
| Total | $300,000,000 | −$109,500,008 | $0 | $190,499,993 | |
Full-page version with every state: Mega Millions annuity schedule for Tennessee.
How Tennessee compares
Tennessee ranks 1st of 51 for what a single winner keeps from this jackpot in cash ($78.2 million).
| State | State tax | Cash kept |
|---|---|---|
| Tennessee | none | $78.2 million |
| Alabama | 5% | $72 million |
| Arkansas | 3.7% | $73.6 million |
| Georgia | 4.99% | $72 million |
| Kentucky | 3.5% | $73.9 million |
| Mississippi | 4% | $73.3 million |
| Missouri | 4.7% | $72.4 million |
| North Carolina | 3.99% | $73.3 million |
| Virginia | 5.75% | $71.1 million |
All 50 states and DC for this jackpot
Best states to win the lottery
Questions
How much is a $300 million Mega Millions jackpot after taxes in Tennessee?
About $78.2 million if you take the cash option ($124.1 million before taxes), or about $190.5 million in total over 30 annual payments if you take the annuity. Tennessee has no personal income tax, so only federal tax applies.
How much tax is taken out of lottery winnings in Tennessee?
At claim the lottery withholds 24% for federal tax on prizes over $5,000. No state tax is withheld. On a jackpot this size the final federal bill is closer to 37% of the prize because most of it falls in the 37% bracket, so about $16.1 million more is owed when you file.
Does Tennessee tax lottery winnings?
No. Tennessee has no personal income tax, so only federal tax applies. If you live in Tennessee but bought the ticket in a state that taxes non-residents (for example Arizona or Maryland), that state can tax the prize.
Is it better to take the lump sum or annuity in Tennessee?
The annuity pays about $112.3 million more after taxes in total, spread over 29 years. The cash option comes out ahead only if you can earn more than 5.7% a year after tax on it. Many winners take the cash; the annuity protects against spending it too fast.
Which states do not tax lottery winnings?
Alaska, California, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming do not tax lottery prizes (California only exempts prizes from tickets bought there). Among the 50 states and DC, Tennessee ranks 1st of 51 for what you keep from this jackpot.
These figures describe the taxes on a prize that has already been won; they are not a reason to buy a ticket. Jackpot odds are hundreds of millions to one. If gambling is causing problems for you or someone close to you, call or text 1-800-GAMBLER (National Problem Gambling Helpline, 24/7).
Sources for this page
- Mega Millions official site (current jackpot and cash value) (checked Sep 26, 2026)
- Report of the official jackpot estimate used here (checked Sep 26, 2026)
- IRS: 2026 inflation adjustments (Rev. Proc. 2025-32) (checked Sep 26, 2026)
- IRS Publication 505: withholding on gambling winnings (checked Sep 26, 2026)
- Tennessee: Tax Foundation - 2026 State Income Tax Rates and Brackets (checked Sep 26, 2026)
- New Mega Millions arrives in April (megamillions.com) (checked Sep 26, 2026)
- Mega Millions To Get MEGA Enhancements in April 2025 (megamillions.com) (checked Sep 26, 2026)
- Mega Millions Game Change FAQ (Illinois Lottery) (checked Sep 26, 2026)
Figures are estimates for planning, not tax or legal advice. How they are calculated: methodology. Read the disclaimer.