State tax rates on lottery winnings vary. So, when you take the cash option, you will end up with $405,568,045 after federal taxes. Remember, the rest of your federal tax bill comes next year and will cost you another $83,643,955. The federal government will immediately take $154,488,000 from that cash option (24%). If the jackpot remains at $1.4 billion for the next drawing, and the cash option is $643.7 million then here is how it will go: So, let’s say you decide to take the cash option when you win the jackpot.
