If I live in a state that taxes prizes, but bought my ticket in a state with no tax on prizes, do I still need to pay state tax?
Yes, you do. Think of lottery prizes as regular earned income from a job. Just because you may work in a different state, that doesn’t permit you to get away with not paying state income tax in your state of residence. The lottery works the same way.
Whether it’s income from a job or income from gambling, the state where the money is won will tax the prize first at their out-of-state tax rate (assuming the state taxes lottery winnings). If your state of residence has the same or lower tax rate, then you won’t owe anything else. But if your state has a higher rate, you will get a credit for what you paid in the other state, and pay the difference to your state.
If the other state has no tax, you just pay the entire tax bill to your state.
The net result is that you end up paying whichever tax rate is higher between your state of residence and the state where you purchased the ticket. Of course, the tax law is quite complex and it’s possible that some condition or arrangement exists between the two states and a good tax attorney and/or accountant could discover a tax-saving loophole. That’s why we always recommend that major prize winners do not make any major decisions before first hiring a good legal and financial team.
One other option to consider, depending on how much in taxes you’re looking to save: the residency requirements as they relate to prize claims, state taxes, and income reporting. Since you aren’t responsible for paying taxes until you claim the prize, perhaps there is time to establish residency in the state where you purchased the ticket before the prize claim period expires. However, that is something you would definitely need to explore with an attorney before taking any action to assess the feasibility. You would also need to decide if it would be worth the risk of that important little piece of paper not getting lost, damaged, or destroyed in the time you spend arranging everything.
Mega Millions Payouts
The US Mega Millions is a champion of the lottery world because the prizes it offers are out of this world! $40 million is only the starting amount for its first prize. Then, every time there is no winner, the Mega Millions jackpot gets even bigger. That is how it has reached the enormous amount of $1.537 billion in October 2018. That is the current record, but the next rollover streak could see it broken!
US$ 165 Million
Play
The Mega Millions does not feature a cap for its jackpot, which means that it can grow indefinitely. But that’s not all you can win when you play Mega Millions! There is a total of 9 prize categories in the game and they are all up for grabs on every single draw. The second prize is worth a full $1 million, so you don’t even have to match all the numbers to become a millionaire in this amazing American lottery!
MULTIPLY YOUR WINNINGS WITH MEGAPLIER®**
Scroll right to view more information.
| Prize | 2X | 3X | 4X | 5X |
|---|---|---|---|---|
| JACKPOT* | n/a | n/a | n/a | n/a |
| $1,000,000 | $2,000,000 | $3,000,000 | $4,000,000 | $5,000,000 |
| $10,000 | $20,000 | $30,000 | $40,000 | $50,000 |
| $500 | $1,000 | $1,500 | $2,000 | $2,500 |
| $200 | $400 | $600 | $800 | $1,000 |
| $10 | $20 | $30 | $40 | $50 |
| $10 | $20 | $30 | $40 | $50 |
| $4 | $8 | $12 | $16 | $20 |
| $2 | $4 | $6 | $8 | $10 |
*The jackpot will be divided equally among all winning tickets. In very rare instances, the Lottery may not be able to pay the stated set prize levels. In that case, the prize pools will go pari-mutuel (like the jackpot) and we will divide the prize pool among all of the winners.
**Megaplier does not apply to jackpot.
Play options
It’s always great to have options, so mark the Optional Plays box on your playslip for any of the following:
- Want to play the same numbers for more than one draw on a single ticket? A Multi-Draw ticket lets you play up to 26 consecutive draws on one ticket. Please keep in mind that the ticket price increases for each draw you add.
- Thinking ahead to a special date? You can buy one ticket for a future draw date. It’s called a Future draw. Mark the Optional Plays box on your playslip, and let the clerk know which future draw date you have in mind.
- Love those numbers so much you want them on more than one ticket? You can Repeat your play and have the same numbers printed on more than one ticket up to 20 times.
- Tell your clerk which option you want when you present your playslip. Keep in mind that playing in more than one draw increases the ticket price by the number of draws you choose.
Receiving prizes
Mega Million Winners have either 180 days (in California this applies only to all prizes except the jackpot), either year, to collect your winnings (although some Mega Millions winners lose their right to claim the jackpot in cash, if they do not communicate their desire within 60 days).
Возрастной ценз на продажу билетов — 18 years, excluding Arizona, Iowa and Louisiana, где минимальный возраст игроков — 21 year, and Nebraska (19 years). Generally (excluding Virginia), players below the age limit are eligible to participate in the lottery, if you receive a ticket as a gift, however, the rules for receiving prizes for these players differ from state to state.
The rules differ depending on the legislation of that jurisdiction, where was the ticket purchased, as well as the place of residence of the winner. Winning the Mega Millions lottery is tax-free in California and Pennsylvania, at the same time in the states of New Hampshire, Texas and Washington have no income tax at all. On the other hand, some residents of New York cities, state of Buffalo and Jonkers, New York, pay 3 type of tax on their winnings.
US Mega Millions FAQ
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Can non-US citizens play Mega Millions?
Yes, they can. According to the Mega Millions rules, the game is open for both American and non-American citizens over the age of 18. The legal age may vary from one state to another. In some states, the lottery is open to people over the age of 21.
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Can I play Mega Millions outside the US?
Yes, you can play the US Mega Millions outside of the US if you play online. theLotter is the leading lottery messenger platform where you can enter the game from anywhere in the world.
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If you win Mega Millions online, how much of the prize do you get?
If you win a Mega Millions prize online on theLotter, you get it 100%. theLotter does not charge commissions on the prizes won on their platform, so whatever you win is your entirely.
Mega sized fun for mega sized prizes!
Update: The Mega Millions Group has announced that the starting jackpot will be determined by ticket sales and global interest rates. Learn more here. Mega Millions is a $2 game with big jackpots every Tuesday and Friday along with other prizes ranging from $2 to $5,000,000! Choose the Megaplier feature for an extra $1 per play and your non-jackpot prize megaplied it could be multiplied by a factor of 2, 3, 4 or 5! Every time a Mega Millions ticket is purchased in New Hampshire, all profits remain in the state and are earmarked for education.
Mega Millions is currently played in 45 states plus the District of Columbia and the U.S. Virgin Islands. Play Mega Millions for more fun and more jackpots!
- Each play costs $2 for each draw. You may purchase a ticket good for up to 20 draws by selecting a draw number under the “draws” column. Total ticket cost will depend on the number of panels and draws you play.
- Use pencil or black pen. If you make an error, DO NOT ERASE. Instead, mark the Void box for that play. Select five numbers from 1 through 70 on the upper section and one number from 1 through 25 on the lower section; to Easy Pick (EP), mark the “EP” box on one or both sections of the play slip and let the Lottery terminal randomly select your numbers for you. You may bet up to five plays on a play slip.
- Check the play slip for accuracy and present to a Lottery Retailer for processing. Important: It is the player’s responsibility to check the tickets for accuracy prior to leaving the retail location. Please sign your ticket immediately to show ownership. There are no cancellations allowed in New Hampshire Mega Millions.
- Players who mark the Megaplier box pay an extra $1 for each play and/or additional draw on the play slip and who win a non-winning jackpot prize receive an amount equal to the prize multiplied by the Megaplier number selected at a drawing conducted at the time of the regular Mega Millions drawing.
* The jackpot prize level is not part of Megaplier. - You may purchase a Mega Millions ticket until 9:50 p.m. (AND) on the evening of the draw.
Drawing results will be posted on our website and at all 1,400-plus retail locations shortly after the drawing.
*A Megaplier multiplier number (2, 3, 4 or 5) is selected at random for each Mega Millions drawing. If you win a cash prize of $2 up to the $1,000,000 prize level and have Megaplied your ticket, you multiply that amount 2, 3, 4 or 5 times.
If I should win the jackpot, do I have the option of remaining anonymous as far as the public and the media are concerned?
In most states, lottery winner information is public domain, therefore it is public information.
Publicized information normally includes the jackpot winner’s name, city, county, game in which they won,
date won, and the amount of the prize.
After you win the jackpot, we recommend seeking the professional guidance of a good lawyer and accountant to see if there are ways of maintaining as much privacy as possible— before contacting the lottery and/or claiming the prize, and possibly even before letting friends or family know. You may be tempted to yell to the rooftops in glee about your newfound fortune, but you will probably end up regretting that decision once the excitement of the win calms down, and you are left with a continuous stream of lawsuits and requests for money from those who want a piece of your win.
Why is the cash option always a different percentage of the annuity from draw to draw?
If you’re calculating what percentage the cash value is of the annuity, then you’re looking at it backwards. The cash value is the starting point, as it is a direct percentage of ticket sales. Then the annuity amount is calculated from that, based on prevailing interest rates. Since the interest rates are constantly changing, the annuity amount calculated on one day will be a different number than if it is calculated the next day. So when a drawing occurs and the lottery has to estimate the next annuity jackpot, they first estimate the number of tickets that will be sold for the next drawing, which determines what the cash value estimate is (because a fixed percentage of each ticket sold goes toward prizes). Then they finally calculate what the annuity will be based on the current interest rates.
