Mega Millions annuity payment schedule
Mega Millions jackpot $300 million, winner living in Colorado, single filer.
First payment, before tax
$4.5 million paid at claim
Four million five hundred fifteen thousand four hundred thirty-one and 00/100 dollars
Rising 5% a year to $18.6 million in year 30. After tax: $2.7 million first, $177.3 million in total.
Jackpot data as of Sep 26, 2026, for the Tuesday, Sep 29 drawing.
| Payment | Year | Before tax | Federal | State | After tax |
|---|---|---|---|---|---|
| 1 | 2026 | $4,515,431 | −$1,620,710 | −$198,679 | $2,696,042 |
| 2 | 2027 | $4,741,202 | −$1,704,245 | −$208,613 | $2,828,344 |
| 3 | 2028 | $4,978,262 | −$1,791,957 | −$219,044 | $2,967,261 |
| 4 | 2029 | $5,227,175 | −$1,884,055 | −$229,996 | $3,113,124 |
| 5 | 2030 | $5,488,534 | −$1,980,758 | −$241,495 | $3,266,281 |
| 6 | 2031 | $5,762,961 | −$2,082,296 | −$253,570 | $3,427,095 |
| 7 | 2032 | $6,051,109 | −$2,188,910 | −$266,249 | $3,595,949 |
| 8 | 2033 | $6,353,664 | −$2,300,856 | −$279,561 | $3,773,247 |
| 9 | 2034 | $6,671,347 | −$2,418,399 | −$293,539 | $3,959,409 |
| 10 | 2035 | $7,004,915 | −$2,541,819 | −$308,216 | $4,154,880 |
| 11 | 2036 | $7,355,161 | −$2,671,410 | −$323,627 | $4,360,124 |
| 12 | 2037 | $7,722,919 | −$2,807,480 | −$339,808 | $4,575,630 |
| 13 | 2038 | $8,109,064 | −$2,950,354 | −$356,799 | $4,801,912 |
| 14 | 2039 | $8,514,518 | −$3,100,372 | −$374,639 | $5,039,507 |
| 15 | 2040 | $8,940,244 | −$3,257,890 | −$393,371 | $5,288,982 |
| 16 | 2041 | $9,387,256 | −$3,423,285 | −$413,039 | $5,550,932 |
| 17 | 2042 | $9,856,619 | −$3,596,949 | −$433,691 | $5,825,978 |
| 18 | 2043 | $10,349,449 | −$3,779,297 | −$455,376 | $6,114,777 |
| 19 | 2044 | $10,866,922 | −$3,970,761 | −$478,145 | $6,418,016 |
| 20 | 2045 | $11,410,268 | −$4,171,799 | −$502,052 | $6,736,417 |
| 21 | 2046 | $11,980,781 | −$4,382,889 | −$527,154 | $7,070,738 |
| 22 | 2047 | $12,579,821 | −$4,604,534 | −$553,512 | $7,421,775 |
| 23 | 2048 | $13,208,812 | −$4,837,261 | −$581,188 | $7,790,363 |
| 24 | 2049 | $13,869,252 | −$5,081,624 | −$610,247 | $8,177,381 |
| 25 | 2050 | $14,562,715 | −$5,338,205 | −$640,759 | $8,583,751 |
| 26 | 2051 | $15,290,850 | −$5,607,615 | −$672,797 | $9,010,438 |
| 27 | 2052 | $16,055,393 | −$5,890,496 | −$706,437 | $9,458,460 |
| 28 | 2053 | $16,858,163 | −$6,187,520 | −$741,759 | $9,928,883 |
| 29 | 2054 | $17,701,071 | −$6,499,396 | −$778,847 | $10,422,827 |
| 30 | 2055 | $18,586,124 | −$6,826,866 | −$817,789 | $10,941,469 |
| Total | $300,000,000 | −$109,500,008 | −$13,200,000 | $177,299,993 | |
Payments are taxed in the year they are received. Future brackets are unknown, so every year uses the 2026 brackets, standard deduction and state rate, with no other income. See methodology.
Annuity or cash?
| Cash option | Annuity (30 payments) | |
|---|---|---|
| Before tax | $124,100,000 | $300,000,000 |
| Total tax | −$51,327,400 | −$122,700,008 |
| You keep | $72,772,600 | $177,299,993 |
| In today's dollarsannuity discounted at 3% a year | $72,772,600 | $107,380,387 |
| When you get it | All at once | $2.7 million now, then yearly up to $10.9 million |
The annuity keeps $104.5 million more after tax in total but pays it over 29 years; the cash would need to earn 5.72% a year after tax to fund the same payments. How to think about the choice.
Questions
How does the Mega Millions annuity work?
You get one payment when you claim and 29 more once a year. Each payment is 5% larger than the one before, and the 30 payments add up to the advertised jackpot ($300 million).
How much is the first Mega Millions annuity payment?
About $4.5 million before taxes for the current jackpot, or $2.7 million after federal and Colorado taxes for a single filer.
Do you pay taxes on lottery annuity payments every year?
Yes. Each payment is income in the year you receive it: 24% federal tax is withheld from every payment and the rest is settled on that year's return. The table assumes today's 2026 brackets for all 30 years.
What happens to the Mega Millions annuity if you die?
The remaining payments go to your estate or beneficiaries. They do not stop. Estate tax may then be due on the value of the remaining payments, so winners who take the annuity usually plan for this with an estate attorney.
Is the annuity worth more than the cash option?
In total dollars, yes: about $104.5 million more after taxes here. The cash option wins only if it can earn more than 5.7% a year after tax.
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)
- 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)
- IRS: 2026 inflation adjustments (Rev. Proc. 2025-32) (checked Sep 26, 2026)
- IRS Publication 505: withholding on gambling winnings (checked Sep 26, 2026)
- Colorado: Colorado Lottery - Financial Counsel (checked Sep 26, 2026)
- Colorado: Colorado Lottery - Claiming Prizes (checked Sep 26, 2026)
- Colorado: Colorado DOR - Income Tax Topics: Part-Year Residents & Nonresidents (checked Sep 26, 2026)
Figures are estimates for planning, not tax or legal advice. How they are calculated: methodology. Read the disclaimer.