Topline

The Mega Millions jackpot rose to $489 million—the second biggest lottery prize of the year so far—after no tickets matched all six numbers drawn on Tuesday night, although the eventual winner will take home a much smaller payout after taxes and deductions.

The six numbers drawn on Tuesday night were 48, 51, 60, 63, 66, and Mega Ball 20.

If a winner emerges in the next draw, they will have a choice between taking the $489 million prize spread over 30 annual installments or a lump sum cash payout of $220.9 million—the preferred option for most winners.

If the winner picks the cash prize, their winnings will first drop to around $167.9 million after a mandatory federal withholding of 24% is applied.

The winner would likely face a federal marginal rate as high as 37%, depending on their taxable income, further reducing the winnings to around $139.2 million.

If the installments route is chosen, the winner’s annual payments of around $16.3 million would fall to $10.27 million after the 37% federal marginal rate is applied.

Depending on their home state, the winner could face additional taxes, as some states, such as New York, tax lottery winnings at 10.9%, while others, such as Texas, Florida, and California, don’t.