What a $505 million Mega Millions annuity pays each year
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A Mega Millions jackpot taken as an annuity is paid as one immediate payment followed by 29 annual payments, and each payment is 5% bigger than the one before, according to Mega Millions. The game says the step is meant to protect a winner's buying power against inflation. The jackpot for Friday, November 6, is $505 million, with a cash option of $213.3 million, after nobody won on October 30 or November 3. Figures are as of November 5, 2026.
| Payment | Before taxes | Paid out so far |
|---|---|---|
| 1st (immediate) | $7,600,975 | $7.6 million |
| 2nd | $7,981,023 | $15.6 million |
| 5th | $9,239,032 | $42.0 million |
| 10th | $11,791,607 | $95.6 million |
| 15th | $15,049,410 | $164.0 million |
| 20th | $19,207,285 | $251.3 million |
| 25th | $24,513,903 | $362.8 million |
| 30th (final) | $31,286,643 | $505.0 million |
The schedule starts slow. The average payment is $16.8 million, and the first 17 checks all come in under it. Half the $505 million isn't paid out until the 21st payment, 20 years after the win. The final check, $31.3 million, is about 4.1 times the first.
The cash option of $213.3 million is about 42% of the annuity figure. It equals the money actually in the jackpot pool, while the advertised $505 million is what that pool would pay out over 29 years if invested. Lump sum versus annuity walks through the tradeoff, and how long it takes to get paid covers the claim timeline.
| Where the ticket was bought | Top state rate | State tax on the 1st payment | State tax over all 30 |
|---|---|---|---|
| Florida, Texas, and other no-tax states | 0% | $0 | $0 |
| California (its own lottery) | 0% | $0 | $0 |
| Pennsylvania | 3.07% | $233,350 | $15.5 million |
| Georgia | 4.99% | $379,289 | $25.2 million |
| New Jersey | 10.75% | $817,105 | $54.3 million |
| New York | 10.9% | $828,506 | $55.0 million |
Federal tax applies to each payment in the year it arrives, and a check of $7 million or more falls in the top 37% bracket. The state figures assume the winner lives in the state where the ticket was sold. The Powerball annuity follows the same 5% schedule, and the Mega Millions analysis page updates the full 30-year table after each drawing.
How we did this. The jackpot and cash option are from official Mega Millions data in our draw database on November 5, 2026. Payments split the advertised jackpot into 30 amounts that each grow 5%, so the first equals the jackpot times 0.05 divided by (1.05 to the 30th power minus 1). State figures apply each state's top rate from our tax table to that first payment and to the full jackpot.
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Frequently Asked Questions
How is the Mega Millions annuity paid?
As one immediate payment followed by 29 annual payments, each 5% larger than the one before, according to Mega Millions. On the $505 million jackpot for November 6, 2026, the first payment would be about $7.6 million and the last about $31.3 million before taxes.
Is the Mega Millions annuity paid in equal amounts?
No. The payments grow 5% a year, so the last is about 4.1 times the first. On a $505 million jackpot the average is $16.8 million, and the first 17 payments all fall below that average.
How much is the Mega Millions cash option?
For the November 6, 2026, drawing, the cash option is $213.3 million, about 42% of the $505 million annuity figure. The cash option equals the money in the jackpot prize pool, paid at once.
