Arizona Lottery

AZLottery MEGA Millions Jackpot Analysis

The MEGA Millions jackpot for the draw on Fri Jan 23, 2026 is estimated to be $266 Million, with a cash option of 120.8 Million. If you win the MEGA Millions jackpot, the IRS will withhold 24% of your prize money upfront, and you may owe up to an additional 13% in federal taxes when the tax is due. Additionally, if you are a resident of Arizona, your state will take 2.5% of your lottery winnings.

Please note that the calculation of the Powerball jackpot prizes and taxes below is based on FEDERAL INCOME TAX BRACKETS FOR 2023.

Arizona MEGA Millions Jackpot/Cash Option for Fri Jan 23, 2026

Draw Date	Jackpot	Cash Option
Fri Jan 23, 2026	$266,000,000	$120,800,000

Lumpsum Option Taxes and Payment

Category	Amount
Cash Gross Payment	$120,800,000
Federal Tax(24%)	$28,992,000
Additional Federal Tax	$15,664,330
State Tax(2.5%)	$3,020,000
Net Lumpsum Payment	$73,123,670

Annuity Payment in 30 Installations

Year	Gross Payment	Fed/State Tax	Net Payment
1	$4,003,566	-$1,441,650 -$100,089	$2,461,827
2	$4,203,864	-$1,515,760 -$105,097	$2,583,007
3	$4,414,004	-$1,593,512 -$110,350	$2,710,142
4	$4,634,784	-$1,675,200 -$115,870	$2,843,714
5	$4,866,470	-$1,760,924 -$121,662	$2,983,884
6	$5,109,860	-$1,850,979 -$127,747	$3,131,134
7	$5,365,220	-$1,945,462 -$134,131	$3,285,627
8	$5,633,614	-$2,044,768 -$140,840	$3,448,006
9	$5,915,308	-$2,148,994 -$147,883	$3,618,431
10	$6,211,100	-$2,258,437 -$155,278	$3,797,385
11	$6,521,522	-$2,373,294 -$163,038	$3,985,190
12	$6,847,638	-$2,493,956 -$171,191	$4,182,491
13	$7,189,980	-$2,620,623 -$179,750	$4,389,607
14	$7,549,612	-$2,753,687 -$188,740	$4,607,185
15	$7,927,066	-$2,893,345 -$198,177	$4,835,544
16	$8,323,406	-$3,039,991 -$208,085	$5,075,330
17	$8,739,430	-$3,193,919 -$218,486	$5,327,025
18	$9,176,468	-$3,355,624 -$229,412	$5,591,432
19	$9,635,318	-$3,525,398 -$240,883	$5,869,037
20	$10,117,044	-$3,703,637 -$252,926	$6,160,481
21	$10,622,976	-$3,890,832 -$265,574	$6,466,570
22	$11,154,178	-$4,087,376 -$278,854	$6,787,948
23	$11,711,714	-$4,293,665 -$292,793	$7,125,256
24	$12,297,446	-$4,510,385 -$307,436	$7,479,625
25	$12,912,172	-$4,737,834 -$322,804	$7,851,534
26	$13,558,020	-$4,976,798 -$338,951	$8,242,271
27	$14,235,788	-$5,227,572 -$355,895	$8,652,321
28	$14,947,604	-$5,490,944 -$373,690	$9,082,970
29	$15,695,064	-$5,767,504 -$392,377	$9,535,183
30	$16,479,764	-$6,057,843 -$411,994	$10,009,927