How much taxes will the winner from Illinois owe?

The billion-dollar Mega Millions jackpot has finally been claimed in Illinois after it was purchased at a Speedway gas station in Des Plaines.

But how much of that will end up in the winner’s pocket and how much will be due in taxes?

The tax bill depends on whether the Mega Millions winner chooses a cash payout of $780.5 million or annual payments totaling $1.3 billion over 29 years.

Illinois currently withholds 24 percent of federal taxes and 4.95 percent of state income taxes, although this may not be the total tax liability depending on the winner’s financial situation.

If the winner decides to take the $780.5 million lump sum, approximately $187.3 million in federal taxes will be withheld in addition to $38.6 million in state taxes. That would mean an estimated take home payout of $554.6 million.

If the winner takes the full $1.337 billion in annual installments and tax rates remain unchanged for the next 29 years, approximately $320.9 million in federal taxes will be withheld and approximately $66.2 million in state taxes will be withheld. That would mean an estimated payout of $949.9 million over 29 years.

After taxes, the winning Mega Millions ticket holder will receive either a cash payout or annual payments totaling the next 29 years. Corbis via Getty Images

Although the cash option is more popular, each annuity payment is 5 percent larger than the previous one.

“This helps protect the lifestyle and purchasing power of winners during periods of inflation,” the Mega Millions lottery website says.

This Mega Millions jackpot is one of the biggest ever since the 2018 South Carolina winner won a $1.537 billion pot.

“Congratulations to the Illinois Lottery for selling the winning ticket for the $1.337 billion Mega Millions jackpot,” Ohio Lottery Director Pat McDonald said in a statement. “We are thrilled to have witnessed one of the largest jackpot wins in Mega Millions history. We can’t wait to find out who won and look forward to congratulating the winner soon! Even better, this exciting jackpot has a significant positive impact on the proceeds for good causes raised by our member sweepstakes.”