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Millionaire for Life Payout After Taxes

What you actually keep from the $1 million-a-year-for-life top prize after taxes: cash option vs annuity. Pick your state for the exact after-tax figure.

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Millionaire for Life ($5 per play) pays its top two prizes for the winner's lifetime, with a 20-year minimum guarantee. The prize amounts are fixed; only the tax you owe changes by state. Federal withholding is estimated at the top marginal 37.00% rate.

Top Prize
Match 5 + Millionaire Ball
Cash Option (lump sum)
Advertised cash$18,000,000
Federal withholding (37.00%)$6,660,000
After federal only$11,340,000
Annuity (per year, for life)
Gross per year$1,000,000
Federal withholding (37.00%)$370,000
After federal only$630,000/yr
2nd Prize
Match 5 (no Millionaire Ball)
Cash Option (lump sum)
Advertised cash$2,200,000
Federal withholding (37.00%)$814,000
After federal only$1,386,000
Annuity (per year, for life)
Gross per year$100,000
Federal withholding (37.00%)$37,000
After federal only$63,000/yr

Estimates use the top federal marginal rate and each state's lottery/income tax rate as withholding approximations, not final tax liability. Not tax advice. Millionaire for Life is run by the Multi-State Lottery Association.