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The Mega Millions jackpot has reached over $1.02 billion. But not all winners take home the same pot; Depending on the state in which you live, you may be subject to higher state taxes.

Friday’s drawing is the third largest Mega Millions jackpots any times. Although lottery jackpots are often shared by multiple winners, Mega Millions set an industry milestone with the largest jackpot in the game in 2018 when $1.537 billion was won on a single winning ticket. One lucky person also won the second largest prize of $1.05 billion in 2021.

Winners may receive their winnings as an annuity or a one-time lump sum. The pension is paid over 30 years and increases by 5% annually. However, most winners opt for the one-time cash payment, and most financial experts advise winners to choose this option. Friday’s Mega Millions jackpot is currently $602.5 million.

Like all other revenue, the IRS dips its hand in the pot and takes it 24% federal tax deduction from above. More may be due at tax time due to complex tax laws.

As if losing a life-changing $144.6 million in federal taxes wasn’t enough, you may also owe your state government more depending on where you live. Not all winners would receive the same payday: if you live in New Jersey, for example, you owe 8% more – while a California winner would not have to pay anything else.

Here’s how much each state withholds from lottery winnings for individual federal taxpayers USA Mega:

  • Washington, D.C.: 10.75%
  • Maryland: 8.95%
  • New York: 8.82%
  • New Jersey: 8%
  • Oregon: 8%
  • Wisconsin: 7.65%
  • Minnesota: 7.25%
  • South Carolina: 7%
  • Connecticut: 6.99%
  • Montana: 6.90%
  • Idaho: 6.50%
  • West Virginia: 6.50%
  • Vermont: 6%
  • Rhode Island: 5.99%
  • New Mexico: 5.90%
  • Georgia: 5.75%
  • Arkansas: 5.50%
  • Iowa: 5%
  • Kansas: 5%
  • Kentucky: 5%
  • Maine: 5%
  • Massachusetts: 5%
  • Mississippi: 5%
  • Nebraska: 5%
  • North Carolina: 4.99%
  • Illinois: 4.95%
  • Ohio: 4.80%
  • Louisiana: 4.75%
  • Oklahoma: 4.75%
  • Arizona: 4.50%
  • Michigan: 4.25%
  • Colorado: 4%
  • Missouri: 4%
  • Virginia: 4%
  • Indiana: 3.23%
  • Pennsylvania: 3.07%
  • North Dakota: 2.90%

Lucky residents of the following 14 states don’t have to pay state taxes on lottery winnings: Alabama, Alaska, California, Delaware, Florida, Hawaii, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Utah, Washington and Wyoming.

The draw is scheduled for Friday, July 29th at 11:00pm ET.

How is inflation affecting your grocery budget? Email personal finance reporter Kaitlyn Koterbski with your story for a future article.