If you win the $1.02 billion Mega Millions prize, you’ll be hit with a massive tax bill depending on where you live

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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 you live in, you may be subject to higher state taxes. 

Friday’s drawing is the third largest Mega Millions jackpots of all time. Though lottery jackpots are often split 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 can receive their winnings through annuity or one-time lump sum option. The annuity is paid out over 30 years, increasing 5% annually. However, most winners opt for the one-time cash payment, and most financial experts advise winners to take that option. It currently sits at $602.5 million for Friday’s Mega Millions jackpot.

Like all other income, the IRS dips their hand into the pot and takes the 24% federal tax withholding off the top. More could be due at tax time due to complex tax laws. 

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

Here is how much each state withholds from lottery winnings for single federal tax filers, according to 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%

Residents of the following 14 states are lucky—they won’t face any state taxes on lottery winnings: Alabama, Alaska, California, Delaware, Florida, Hawaii, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Utah, Washington, and Wyoming.

The drawing is scheduled for Friday, July 29th at 11 p.m. ET.