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

Friday night's Mega Millions jackpot has increased to an estimated $685 million dollars, according to the Texas Lottery.

If you beat the odds and match all six numbers, it doesn't mean all of that money will go right into your bank account.

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 $640 million jackpot, those who pick the cash option will receive an estimated $347.8 million. 

Then there are the taxes. The IRS immediately takes 24% of all lottery winnings over $5,000, dropping the total to approximately $264,328,000 for a winner choosing the lump sum. 

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

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

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

The drawing will be held on Friday, December 30, 2022, at 10 p.m. CST.

Texas Mega Millions Winners

In 2022, 13 Mega Millions players won second-tier prizes of $1 million or more. 

Since Texas started selling Mega Millions tickets in 2003, 13 jackpot winning tickets have been sold in Texas.

"Before we flip the calendar to a new year, we’re hoping a Texas Lottery player becomes a big Mega Millions jackpot winner," said Gary Grief, executive director of the Texas Lottery.