Quick Read
- Mega Millions jackpot has climbed to $965 million after no winner on Tuesday.
- Winner can choose $965 million in installments or a $445.3 million lump sum.
- Federal and state taxes reduce lump sum winnings to around $280.5 million.
- Odds of winning the jackpot are 1 in 290 million.
- Next Mega Millions drawing is Friday; Powerball stands at $512 million.
Mega Millions Jackpot Soars as Winner Wait Continues
There’s a particular kind of anticipation that grips the nation when lottery jackpots approach mind-boggling numbers. After Tuesday night’s Mega Millions drawing, that feeling is sweeping across the country once again. The top prize has surged to an eye-watering $965 million—the second largest lottery jackpot of 2025—after no ticket matched all six numbers: 10, 13, 40, 42, 46, and the gold Mega Ball 1.
Friday night’s upcoming draw is already generating headlines, and with good reason. If the jackpot is won, it will mark only the eighth time in Mega Millions history that the prize has come so close to the billion-dollar mark, according to ABC News.
Behind the Billions: How Much Will the Winner Really Get?
As the buzz builds and hopeful players buy their tickets—available in 45 states, Washington, D.C., and the U.S. Virgin Islands—the reality behind the record-breaking jackpot is more complicated than it seems. Sure, the winner will have a choice: take the headline $965 million in 30 annual installments, or opt for the lump sum cash payout of $445.3 million, which is what most winners prefer.
But here’s where things get interesting. The federal government takes a mandatory 24% withholding right off the top of the lump sum, slashing the payout to about $338.4 million. Then, depending on the winner’s taxable income, the federal marginal rate could rise to as high as 37%. That means the final take-home could drop even further, settling around $280.5 million—less than a third of the original jackpot, as Forbes reports.
If the winner chooses the annual payments, each installment of roughly $32.16 million would be whittled down to about $20.26 million after federal taxes. On top of that, state taxes come into play. For example, New York levies an additional 10.9% on lottery winnings, while states like Texas, Florida, and California don’t tax lottery prizes at all. The winner’s location could mean the difference of millions over the payout period.
Odds and Realities: What Are Players Facing?
The odds of winning the Mega Millions jackpot are staggeringly slim: just 1 in 290,472,336. Yet the sheer size of the prize keeps millions of people buying tickets—at $5 per play—hoping for a life-changing windfall. For context, the largest Mega Millions jackpot ever was $1.6 billion, won on August 8, 2023. This week’s draw marks the 40th consecutive round since the last jackpot was claimed in Virginia on June 27, setting a record for the current run.
Even though no one nabbed the top prize on Tuesday, lottery fever didn’t leave everyone empty-handed. Across all prize tiers, more than 809,000 winning tickets were sold for a total payout of $27.9 million nationwide. For many, these smaller wins are a reminder that the lottery offers more than just the headline jackpot—it’s a game of odds, dreams, and, sometimes, modest rewards.
The Cultural Fascination With Lottery Jackpots
Why do Americans keep chasing lottery dreams, especially when the odds are so remote? The answer lies somewhere between hope and spectacle. When jackpots grow into hundreds of millions, they become more than just a game—they’re a phenomenon. Convenience stores fill with hopeful customers. Social media explodes with speculation and advice. News outlets dedicate prime coverage to the numbers, the winners, and the very real stories of lives transformed overnight.
But beneath the excitement, there’s a sobering lesson in finance. Experts consistently warn that lottery winnings are subject to complex tax rules and financial planning challenges. The initial thrill can quickly give way to the reality of managing a sudden fortune, navigating legal obligations, and making decisions that could affect a winner’s family for generations.
Looking Ahead: Friday’s Drawing and What It Means
Friday’s Mega Millions drawing is set to be one of the most watched lottery events of the year. The question on everyone’s mind: Will someone finally break the streak and claim the nearly $1 billion prize? Or will the jackpot continue to climb, edging closer to a historic high?
Meanwhile, the Powerball jackpot isn’t far behind, with its own prize at $512 million and a drawing scheduled for Wednesday night. For avid lottery players and casual dreamers alike, this week is a reminder of the unpredictable excitement the lottery can generate—and the complex realities that come with winning.
The headline figures may dazzle, but the true story of a Mega Millions win is written in the fine print: taxes, financial strategy, and a rare stroke of luck. For those who play, understanding these realities is just as important as the dream itself.