Friday’s Mega Millions jackpot is $1.22 billion, but potential winners nationwide could take home much less due to state tax obligations, with Maryland having one of the highest tax rates in the country, alongside New York and Washington, D.C.

All lottery winners first face a 24% federal tax. After that, lucky Maryland residents are hit with 8.75% state tax on their winnings. Out-of-staters who win using a Maryland lottery ticket lose just 8% to taxes.

For Friday’s jackpot, the fifth largest in Mega Millions history and ninth largest in national lottery history, assuming the winner is a Maryland resident who takes the prize as a $539.7 million lump sum, “the combined federal and state withholding would be 32.75%, which comes out to $180 million, so after withholding, the amount remaining would be $369.7 million,” according to a Maryland lottery spokesman.

For a Maryland resident opting for the annuitized prize, they would get “30 graduated payments that increase by 5% each year,” he said. Before taxes, the first payment would be $18,359,000 and the last payment would be $75,584,000, the lottery spokesman said.

Maryland’s state tax on lottery winnings for residents is higher than Washington, D.C.’s rate of 8.5% but less than New York’s, where winners take a 10.9% haircut.

According to the New York Lottery website, New York City also imposes a separate 3.876% tax on top of the state and federal withholding rates.

According to the Maryland Lottery, the Mega Millions jackpot was last hit in September, for $810 million, on a ticket sold in Texas.

CNBC reported there are eight states that don’t tax lottery winnings: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

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