The New Jersey winner of the recent Mega Millions jackpot of $1.13 billion is about to receive a significantly lower amount after taxes. The cash option of the jackpot, worth $536.6 million, will see 24% going to the IRS and 8% to New Jersey in state taxes. This means the lucky winner will walk away with approximately $364,888,000 with the cash option after taxes.
It is important to note that the winner will likely move into the highest tax bracket, resulting in higher income taxes. Choosing the annuity option would result in 30 annual payments, with the first net payment being $8,928,556. Opting for the annuity route could potentially lead to receiving $591,679,367, which could increase with interest and investments over time.
Lottery officials advise winners to consult with financial planning experts to manage their newfound wealth wisely. The winning ticket was sold at ShopRite Liquors in Neptune Township, marking the first Mega Millions jackpot won in New Jersey since 2020. Since the inception of Mega Millions in 2002, there have been 26 jackpot wins in New Jersey, while the Powerball has been won 11 times in the state.
The odds of winning the Mega Millions jackpot are incredibly slim at 302,575,350 to 1. Mega Millions drawings are held on Tuesdays and Fridays in 45 states, Washington D.C., and the U.S. Virgin Islands. Subscribe to support our journalism today and stay updated on the latest news and lottery updates.
