In an unexpected turn of events, the grand Mega Millions jackpot was finally claimed on a Tuesday night, following a long dry spell of 30 drawings unanchored by a winner. The grand ticket emerged from within the ranks of the Garden State, earning one fortuitous New Jersey resident a life-altering wealth overnight.
The winner had placed a modest $2 play at a local ShopRite grocery and liquor store at Neptune, a small township suffused in the western ambiance of Asbury Park. Their luck was spelt in the whimsical digits of 7, 11, 22, 29, 38, accompanied by a golden Mega Ball beaming with the number 4. The unprecedented winnings from this grand jackpot amount to a staggering $1.13 billion.
From this point, the winner will face the life-altering choice of receiving either a chunky one-time cash option of $537.5 million or savoring the thrill of a burgeoning full payout, made through 29 yearly increments rising by an approximate 5% annually. Both before Uncle Sam’s share, of course, as per the federal tax rate of 37% affixed for the highest earners- annual incomes exceeding $578,126 for single filers, and $693,751 for married couples filing together.
Lamentably for the jubilant New Jersey ticket holder, their newfound wealth is not entire exempt from the rapacious grip of the taxman. States such as California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not impose tax on lottery winnings. However, the rest that permit lottery games do tax, with rates varying dramatically between a low of 2.5% in Arizona to a staggering 10.9% in New York.
Not far behind the Empire State, New Jersey levies a heavy tax on the lottery windfalls, inflicting an honking 10.75% on their monetary influx. This substantial cut is bound to shrink the promising wealth substantially. For perspective, opting for the cash option (the historically preferred choice for winners due to inflation-induced quick jackpot growth) would see an instant reduction of $198.8 million due to federal taxes, leaving about $338.66 million for states that do not demand further tax.
With New Jersey’s lottery tax, another $57.7 million would be subtracted, leaving a final figure of roughly $281 million. A princely sum, albeit one with nearly $58 million committed for Trenton’s coffers. It’s worth noting that despite the irrefutable charm of the resulting fortune, such a large commitment for the state feels like a bitter pill for the winner.
New Jersey’s recent entry to the Mega Millions and Powerball’s gilded top-25 jackpot list is a notable turnaround from its typical fortune in these games- or the lack thereof. Boasting a $1.13 billion win, the Garden State is now a proud contender.
The anonymous winner, a privilege accorded to them by New Jersey’s rules, must make claims within a year. This notable victory was the eighth-largest lottery windfall in the annals of United States history.
The night of the grand win also marked a distinguished milestone for the New Jersey Lottery. With over 29.9 million tickets winning some form of prize from the 31 drawings during this period, the state was rightly felicitated by Gretchen Corbin, the lead director of the Mega Millions Consortium and CEO of the Georgia Lottery.
