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 $1.35 billion dollars, according to the Texas Lottery. That's the second-largest jackpot in U.S. history.

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.

READ MORE: Mega Millions jackpot grows to $1.35 billion, 2nd largest in game history

If there is a single winner of the $1.35 billion jackpot, those who pick the cash option will receive an estimated $707.9 million. 

Then there are the taxes. The IRS immediately takes 24% of all lottery winnings over $5,000, dropping the total to approximately $538,004,000 for a winner choosing the lump sum. 

The winner will also likely owe more when they file their 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, January 13, 2023, at 10 p.m. CST.