Mega Millions after taxes: How much the winner could actually take home in Texas

Dallas - Friday night's Mega Millions jackpot has increased to an estimated $1.28 billion dollars, according to the Texas Lottery.

That's the third largest U.S. lottery prize of all time, but if you beat the odds and match all six numbers, it doesn't mean you will become a billionaire.

Winners can choose to have their prize money paid out in 30 payments over 29 years or in a lump sum.

If there is a single winner of the $1.28 billion jackpot, those who pick the cash option will receive an estimated $747.2 million. 

Then there are the taxes. The IRS immediately takes 24% of all lottery winnings over $5,000, dropping the total to approximately $567.8 million for a winner choosing the lump sum. 

The winner will also likely owe more when they file their 2022 federal income taxes.

Texas is one of 10 states that does not tax lottery winnings at the state level. 

The drawing will be held on Friday, July 29, 2022, at 10 p.m. CST.

READ MORE: States that allow Mega Millions winners to remain anonymous

Texas Mega Millions Winners

13 Texans have hit all six numbers in the Mega Millions since the game came to the state in 2003, according to the Texas Lottery.

The last time it happened was in 2019, when a Leander resident won an estimated $227 million. It is still the largest lottery prize ever paid to a single Texas Lottery player.

Since the start of 2022, five Texas Lottery players have won prizes of $1 million or more.