Who: A Mega Millions jackpot-winning ticket sold in Georgia. When: The drawing that produced the winning numbers occurred on Friday. Where: The ticket was purchased at a Publix in Newnan, Georgia. What happened: The drawing matched the six winning numbers — 1, 8, 11, 12, 57 and the gold Mega Ball 7 — producing a $980 million jackpot, the eighth-largest in the game’s history. Result: The winner faces a complex tax bill that reduces the headline prize substantially, with a likely after-tax cash take-home in the low hundreds of millions depending on choices and final tax liabilities.
Key Takeaways
- The jackpot totaled $980 million, drawn Friday with winning numbers 1, 8, 11, 12, 57 and Mega Ball 7.
- The published lump-sum cash option is $452.2 million; the annuity alternative is 30 annual payments totaling the advertised $980 million.
- Mandatory federal withholding on large lottery payouts is 24%, cutting the cash option to roughly $343.7 million immediately.
- After applying a likely top federal marginal rate of 37%, the federal tax burden would reduce the cash payout further to roughly $284.9 million.
- Georgia taxes lottery winnings at a flat 5.19%, implying about $23.5 million owed on the cash option, and a likely net take-home of about $261.4 million if the winner takes the lump sum.
- In total, lump-sum winners in this scenario would pay about $190.8 million in combined taxes under these assumptions.
- The odds of matching all six numbers were 1 in 290.5 million.
- The jackpot had been rising since the previous top winner, a $348 million prize awarded in Virginia in June.
Background
The Mega Millions game has produced steadily growing jackpots when consecutive draws produce no top-prize winners. This $980 million figure became possible after multiple drawings without a single top-prize claimant, culminating in Friday’s winning combination. Mega Millions launched in 2002 and routinely offers a choice between a 30-year annuity equal to the advertised jackpot and a smaller lump-sum cash payment; most recent winners have selected the lump sum for liquidity and planning flexibility.
State and federal tax treatment of lottery winnings has long shaped winners’ decisions. Federal law requires an initial withholding on large gambling payouts, and individual circumstances determine the final federal liability. States vary: some levy no state income tax on lottery prizes, while others tax them as ordinary income. Georgia applies a flat rate on winnings, meaning winners who reside in or claim the prize in Georgia face an additional state bill on top of federal obligations.
Main Event
Friday’s Mega Millions drawing produced the six numbers 1, 8, 11, 12, 57 and Mega Ball 7. Lottery officials confirmed a winning ticket was sold at a Publix supermarket in Newnan, Georgia; the ticket matched all numbers and therefore is eligible for the jackpot payout. The headline prize was listed at $980 million, the eighth largest in Mega Millions history since the game started in 2002.
Winners can elect either the advertised annuity — 30 graduated annual payments that sum to the advertised jackpot amount — or a reduced lump-sum cash payout currently set at $452.2 million. The cash option is popular because it provides immediate liquidity and control for investments, debt repayment, or major purchases. However, the cash number is only the starting point: mandatory and additional taxes shrink the actual amount a winner receives.
Under current federal rules, mechanical withholding of 24% applies to such large gambling payouts, so the $452.2 million cash option would be reduced to about $343.7 million on distribution. That withholding is an advance on a winner’s federal income-tax liability, not the final tax bill. Depending on total taxable income, winners may face a top federal marginal rate of 37%, which would increase total federal tax owed and reduce net proceeds further.
Analysis & Implications
Tax mechanics matter. The mandatory 24% withholding helps ensure some federal taxes are collected at the time of payout, but most winners will owe more if their total taxable income pushes them into the top federal bracket. In this instance, applying a 37% marginal rate to the cash option implies additional federal tax beyond the 24% already withheld, yielding the commonly cited post-federal-tax figure near $284.9 million.
State taxation is the next major determinant. Georgia’s flat 5.19% income tax on lottery prizes means the winner would likely owe about $23.5 million on the announced cash option. That state payment is calculated on the cash award, not on the amount left after federal withholding, and further reduces what the winner can actually spend immediately.
The annuity route smooths income, providing roughly $32.6 million per year before taxes, but once federal and state rates apply the annual net drops significantly. Using the 37% federal top rate as a guide, annual annuity payments would fall to around $20.5 million after federal tax alone — a structure that some winners prefer for intergenerational gifting or tax-smoothing, while others prefer the lump sum for investment potential.
Comparison & Data
| Item | Amount (approx.) |
|---|---|
| Advertised jackpot (annuity) | $980,000,000 |
| Cash lump-sum option | $452,200,000 |
| After mandatory 24% federal withholding (cash) | $343,700,000 |
| Estimated after full 37% federal tax (cash) | ~$284,900,000 |
| Estimated Georgia tax (5.19% on cash) | ~$23,500,000 |
| Approximate net to winner (lump sum, after taxes) | ~$261,400,000 |
The table lays out the headline steps from advertised jackpot to likely net cash if the winner selects the lump-sum option and is subject to the typical federal and Georgia rates referenced. Numbers are rounded to the nearest hundred thousand or million for clarity and follow the calculations reported by tax analysts covering large lottery claims.
Reactions & Quotes
Lottery administrators and tax authorities routinely provide guidance after a major jackpot is claimed; winners are encouraged to secure the ticket and consult professional advisers before making public statements or financial moves. Below are brief official and guidance-oriented responses following the win.
Officials confirmed a winning ticket was sold in Georgia and advised the holder to sign the ticket, keep it safe and consult legal and financial counsel before claiming.
Mega Millions / Georgia Lottery (official guidance)
Tax authorities and guidance documents reiterate that gambling winnings are taxable income and that withholding is an initial collection mechanism, not the final tax computation.
Federal guidance explains that large gambling payouts are reportable income and subject to federal withholding and tax filing procedures.
Internal Revenue Service (official guidance)
Unconfirmed
- The identity of the ticket holder has not been publicly confirmed at the time of reporting.
- It is not yet known whether the winner will choose the lump-sum cash option or the 30-year annuity.
- The final federal tax owed will depend on the winner’s complete taxable income and filing status and thus may differ from the illustrative 37% scenario.
Bottom Line
The $980 million Mega Millions jackpot sold in Georgia represents a life-changing headline sum, but winners should expect far less in spendable cash once federal withholding, additional federal tax liabilities and Georgia’s 5.19% tax are applied. The commonly cited net for the lump-sum route in this case — roughly $261.4 million — reflects those combined reductions under current rates and typical assumptions about federal liability.
Winning strategies vary: some claimants prioritize immediate liquidity and investment control via the lump sum, while others choose an annuity to smooth income and taxation. In every case, the immediate steps that preserve value are the same — secure the ticket, engage qualified tax and legal advisors, and plan before public disclosure or large expenditures.
Sources
- Forbes (news/media report on the winning ticket and tax estimates)
- Mega Millions (official game rules and prize payment options; official)
- Internal Revenue Service (guidance on taxation of gambling winnings; official)
- Georgia Department of Revenue (state tax rules and rates; official)