Mega Millions jackpot: Here's how much NY will take in taxes
NEW YORK - The Mega Millions jackpot is an estimated $1.1 Billion for Friday night's drawing but the winner will get much less than that.
Most people will take the cash option. That will automatically cut the payout to $648.2 Million.
Then the tax man is going to come knocking on the door.
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If you are in New York, here's the tax bite:
The Federal withholding is 24% (30% if you are not a citizen)
The New York withholding is 10%
If you live in New York City there is an additional 3.876% withholding.
If you live in Yonkers the local withholding is 1.82575%.
RELATED: NY will release your identity if you win the Mega Millions jackpot
The Gaming Commission is required by law to withhold federal and New York State income taxes from taxable prizes over $5,000, regardless of the winner's place of residence.
By law, the Gaming Commission is also required to withhold overdue taxes owed to New York State, past-due support, and prior public assistance from any New York Lottery prize of $600 or more.