These States Won’t Tax Your Mega Millions Winnings

If you win the Mega Millions lottery jackpot, will your state tax your payout?

money flying in the sky
(Image credit: Getty Images)

The March 26 Mega Millions winning ticket for the $1.13 billion jackpot was sold in New Jersey. The amount had climbed recently with players across the country hoping to win. However, as you know, the Mega Millions winner will have to pay considerable federal taxes on that prize.

The IRS takes federal tax “off the top.” But the winner then pays additional federal income taxes based on the tax rate tied to their federal tax bracket, which will be high due to the multibillion-dollar payout. Depending on where they live, the winner may also pay state taxes. (The same is true for a Powerball winner.) 

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Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.