While there are factors to consider when determining if it’s worth it to buy a ticket ahead of Friday’s drawing, the winnings are undeniably tempting.
Lottery winners can choose from two payment options: lump sum or annuity. But you don’t get anything near the sticker price with either option, and that’s largely because of taxes.
On the lump-sum payment plan, you’d get a one-time payment of $513 million, per USA Mega. But after federal taxes, which come at a rate of 24%, the total payment would be about $390.18 million, according to the site’s estimate.
It’s worth noting that this is just an estimate, as the federal tax rate for the lump-sum option usually ends up closer to the maximum federal income tax rate, which is 37% this year, making the take-home prize that much smaller.