American lottery may pay prize that exceeds the US$1 billion mark

The last prize was awarded in December 2023, when two players from California won the prize of US$394 million, since then no one has won the lottery’s main prize. The biggest award in Mega Millions occurred in August 2023 when the owner of a ticket purchased in Neptune Beach, Florida, received the amount of US$1.602 billion.

Tax Withholding

The owner of the winning ticket will, however, receive less than half the amount drawn, considering the payment of mandatory taxes. The winner can choose to pay a single amount of US$525.8 million or pay the tax in 30 annual installments.

There is a mandatory federal tax withholding of 24% that reduces the amount to US$399.6 million and a federal marginal rate that can increase this percentage to 37%, depending on the buyer’s taxable income and other tax deductions, with this percentage the value of the gain could be reduced to US$331.2 million.

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_{Advertising signs with the value of lottery prizes in 2023 in California, USA (Photo: reproduction/ Tayfun Coskun/Anadolu Agency/ Getty Images Embed)}

Some American states also charge taxes on the amount gained. The state of New York has one of the highest rates, reaching 10.9%, while Arizona has one of the lowest rates, with a percentage of 2.5%. States like California and Texas do not charge taxes on the amount earned.

Mega Millions

Formerly known as The Big Game (The Great Game), the Mega Millions is a popular lottery in the United States and recognized internationally. The first lottery draw took place on September 6, 1996 and was attended by six states: Georgia, Illinois, Maryland, Massachusetts, Michigan and Virginia.

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_{Woman marking the chosen numbers on her lottery ticket (Photo: reproduction/ Ringo Chiu/ AFP/ Getty Images Embed)}

The first award took place in December 2002, when the amount of 68 million was drawn in New York. Currently, the draws for Mega Millions They are held on Tuesdays and Fridays, at 11pm (Brasília time).

Featured Photo: Mega Millions lottery tickets inside a convenience store in Lower Manhattan, New York (Photo: Reproduction/Drew Angerer/ Getty Images Embed)