The Mega Millions lottery jackpot has reached an estimated $965 million, while the Powerball jackpot stands at nearly $550 million, totaling over $1.5 billion in prizes. However, lottery winners in South Carolina should brace for a hefty tax bill, with the state imposing a 7% flat tax on winnings over $500 and the federal government taking 24% upfront on winnings over $5,000.
After months of going unclaimed the Mega Millions lottery could now bring a lucky winner an estimated 965 million and a hefty tax bill if won by someone in South Carolina.Combined with the Powerball jackpot standing at nearly 550 million that adds up to more than 1.5 billion up for grabs in this weekends drawings.Mega Millions next draws on Nov. 14 with Powerball drawing again on Nov. 15. Drawings both nights are around 11 p.m.The Palmetto State taxes lottery winnings over 500 at a flat 7 percent with potentially more owed based on annual income. The federal government exacts a 24 percent tax upfront on winnings over 5 000. The total bill however would assuredly be higher as jackpots this large would push the winner into the highest federal tax bracket of 37 percent CNBC.com reports.At the lower rate winning the Mega Millions jackpot in South Carolina would cost at least an estimated 299 million in taxes. At the higher federal rate that tax bill would top 424.5 million. While most states tax lottery winnings somewhere between 4 percent and 6 percent a handful have no tax at all California Florida New Hampshire South Dakota Tennessee Texas Washington and Wyoming according to CNBC.com.On the opposite end of the spectrum New York levies a tax of 10.9 percent. The largest lottery jackpot won in South Carolina was 1.54 billion which came from an October 2018 Mega Millions ticket sold at a KC Mart in Simpsonville in Greenville County. The winner who chose to remain anonymous collected a one-time cash payment of 878 million. It was the second-largest U.S. lottery jackpot at the time. It now ranks sixth on the list. The largest lottery jackpot in the U.S. was a 2.04 billion Powerball prize in November 2022. The winning ticket was sold in California.There have been 13 U.S. lottery jackpots that have topped 1 billion. Winners can take a lump-sum cash payout or annuity payments over 30 years which typically results in lower taxes. A Mega Millions ticket now cost 5 each. Odds of winning are about 1 in 290 million.A Powerball ticket costs 2. Odds of winning are about 1 in 292 million.South Carolina has had one Mega Millions jackpot winner and seven Powerball jackpot winners according to the S.C. Education Lottery.The S.C. Education Lottery was established in 2002. In the years since more than 8 billion in lottery proceeds have been transferred to the General Assembly to use for education programs. The money covers higher education scholarships needs-based grants tuition assistance National Guard Loan Repayment program and educational programs for K-12 students. In 2024 592 million was transferred for education programs from 2.4 billion in lottery ticket sales the S.C. Lottery Commission reported. Of those sales 1.6 billion was paid in prize winnings with another 168 million covering retailer commissions