How much would a $910 million lottery winner actually take home in Missouri or Kansas?

If you’re hoping to score the $910 million Mega Millions jackpot this week, remember that the winner will still have to pay a pretty penny in taxes before enjoying their new fortune.

All lottery winnings are taxable income. If any Missouri or Kansas residents win the jackpot when the Mega Millions numbers are pulled, they will be subject to federal, state and possibly local taxes, wherever they apply.

So how much would you have to pay if you win in Missouri or Kansas?

First, any prizes above $5,000 will be hit at least with a 24% federal tax, regardless of which state you are in. The winner may owe additional federal taxes depending on how much the prize is, according to the Missouri and Kansas Lottery websites.

For example, since the $910 million prize would put the winner in a new tax bracket, they will be responsible for an additional 13% annual federal income tax during their next tax return. So in total, the winner will pay 37% in federal taxes, said Missouri Lottery Lawyer Kurt Panouses, who specializes in helping lottery winners plan for their new riches and the taxes that come with it.

Kansas and Missouri will also apply a 5% and 4% income tax, respectively. Some states like California and Florida don’t have a state tax on lottery winnings.

However, the amount people take home ultimately depends on both the taxes and the payout option the winner chooses. Whoever wins the grand prize will get the choice to accept a lump sum cash prize or receive annual payments for the next 30 years.

Here’s a breakdown of how much money you could actually take home if you win the coveted $910 million Mega Millions jackpot.

How much do I get if I choose the lump sum?

Panouses said most people choose the lump sum option, which pays out less than the $910 million even before taxes.

In this case, after taxes and other deductions, most winners who choose the lump sum end up with around a third of the prize listed.

The lump sum cash value of the $910 million jackpot is $464.2 million, according to the Missouri Lottery.

After the federal government takes out 24% upfront, the winner will have around $352.8 million. The winner will likely be responsible for an additional 13% in federal taxes when their taxes are due, which will reduce the earnings to around $292.4 million.

Kansas’ 5% tax would deduct roughly $23.2 million leaving them with around $269.2 million.

And in Missouri, the lucky winner will have to let go of an additional $18.5 million for a final prize of just over $273.8 million.

What about annuity payments?

Unlike, the lump sum cash option, lottery winnings paid out annually will equal the full $910 million jackpot before taxes.

If the winner chooses to have their earnings paid out $30.3 million annually over the next 30 years, that money will still be taxed by federal, state and local governments each year.

After applying the federal government’s 37% tax and additional state taxes, the annual payout in Missouri and Kansas will be around $18 million or $17.5 million, respectively.

Panouses said many people choose the lump sum to avoid future income taxes, as those tax rates can change year after year. When winners choose the lump sum, all of their earnings will be taxed that year.

“Most people are going to say, ‘Let’s just take the lump sum, pay our taxes and be done with it.’ As opposed to taking an annuity and going through the same emotional issues of paying the taxes 29 more times.”

When is the next drawing?

The next Mega Millions drawing will take place on Friday, July 28 at 10 p.m. To check for the winning numbers, visit here.