Mega Millions Jackpot Soars to $900 Million, Eighth Largest in Game History

The $900 Million Milestone: Next Drawing Set for Tuesday, November 11

The Mega Millions jackpot has reached a staggering estimated $900 million, cementing its place as one of the largest lottery prizes ever offered in the United States. With no grand prize winner emerging from recent drawings, the annuity value continues to climb, capturing national attention.

This massive prize pool places the current jackpot as the eighth-largest in the history of the Mega Millions game. The next opportunity for players to claim the life-changing sum is the drawing scheduled for Tuesday, November 11, 2025, typically held at 11:00 p.m. Eastern Time.

For players focused on the immediate payout, the estimated cash option—the lump sum payment before taxes—is approximately $430 million. Understanding the difference between the annuity and the cash value is the first critical step for anyone considering a ticket purchase.

Understanding the Payout Structure: Annuity vs. Lump Sum

When a jackpot reaches this magnitude, the financial mechanics of the payout become crucial. The advertised $900 million figure represents the annuity option, which is paid out over 30 years. This option involves an initial payment followed by 29 annual installments, each 5% larger than the previous one.

Why the Cash Option is Lower

Lottery organizations calculate the annuity based on expected returns from investing the total cash pool over three decades. The cash option (estimated at $430 million) is the actual amount of money currently held in the prize pool, available for immediate distribution. Most winners opt for the lump sum, despite the lower headline figure, for immediate financial control and investment flexibility.

The Financial Reality Check: Taxes on a Nine-Figure Win

Winning a prize of this size immediately thrusts the recipient into the highest tax brackets, making tax planning the most critical initial decision. This is where the expertise of financial advisors becomes indispensable.

Federal and State Withholdings

1. Immediate Federal Withholding: The IRS mandates a 24% federal withholding on lottery winnings over $5,000. This is taken out immediately upon payout.
2. Remaining Federal Liability: Since the winnings push the recipient into the top federal income tax bracket (currently 37%), the winner will owe an additional 13% upon filing their tax return for the year the prize is claimed.
3. State Taxes: State tax implications vary dramatically. States like California, Florida, Texas, and New Hampshire do not tax lottery winnings, offering a significant advantage. Conversely, states like New York and Maryland levy substantial state taxes, sometimes exceeding 10%.

For a winner in a high-tax state taking the $430 million cash option, the net takeaway, even after the initial 24% withholding, will be substantially reduced by the remaining federal and state tax obligations.

Historical Context: Ranking the Mega Millions Giants

While the current $900 million jackpot is monumental, it falls just outside the top five largest lottery prizes ever recorded globally. Its position as the eighth-largest Mega Millions prize highlights the recent trend of massive jackpots driven by increased ticket sales and higher starting amounts.

Top Mega Millions Jackpots (Annuity Value)

Playing the Game: Odds and Strategy

The Mega Millions game is played by selecting five numbers from 1 to 70 (the white balls) and one number from 1 to 25 (the gold Mega Ball). To win the grand prize, a player must match all six numbers drawn.

The Astronomical Odds

The odds of winning the Mega Millions jackpot are approximately 1 in 302.6 million. To put this into perspective, the odds of winning the grand prize are significantly lower than being struck by lightning or having quadruplets.

While the odds are daunting, the game offers nine prize tiers, meaning there are other ways to win smaller, yet still substantial, amounts:

• Match 5 White Balls + Mega Ball: Wins the Grand Prize.
• Match 5 White Balls Only: Wins $1 million (or more with the Megaplier option).
• Match 4 White Balls + Mega Ball: Wins $10,000.
• Match 3 White Balls + Mega Ball: Wins $200.

Where to Purchase Tickets

Tickets are sold in 45 states, the District of Columbia, and the U.S. Virgin Islands. Tickets cost $2 per play, with an optional $1 Megaplier feature that can increase non-jackpot prizes by up to five times.

Key Takeaways for the Next Drawing

For those participating in the upcoming Tuesday, November 11 drawing, here are the essential facts to remember:

• Annuity Value: $900 million (paid over 30 years).
• Cash Value: Approximately $430 million (lump sum before taxes).
• Historical Significance: Eighth-largest Mega Millions jackpot ever.
• Odds of Winning: 1 in 302.6 million.
• Tax Implications: Federal taxes will reduce the prize significantly, and state taxes vary widely.

Conclusion: The Business of the Big Jackpot

The surge in the Mega Millions jackpot is a significant event not just for hopeful players, but for the lottery industry itself. These massive prizes drive record sales, generating substantial revenue for the participating states, which typically allocate funds toward education, infrastructure, and other public services.

While the dream of immediate wealth is the primary motivator for ticket buyers, the true financial impact of a $900 million prize lies in the complex decisions surrounding payout structure and tax mitigation. For the eventual winner, the journey from ticket purchase to financial security will require expert guidance to navigate the immense tax burden and manage a sudden, overwhelming influx of capital.