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best & not so good states for winning the $1.4 billion Powerball jackpot

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vixen777

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#1
All lottery winnings are subject to a 25 percent federal tax withholding. And that doesn’t include the taxes charged by most states, which could range from zero to almost 9 percent.

The total prize amount of $1.4 billion only really applies to people who choose to receive the cash in equal payouts over a period of 30 years. Most people, however, choose to take a smaller lump sum payment,
which in this case would mean a payout of $868 million, before taxes, according to the website USAMega, which tracks multi-state lotteries.

After federal taxes are deducted, which would add up to about $217 million, the total prize is reduced to $651 million. Then there are state taxes to think about, which vary based on where the winning ticket is purchased.
Some states charge taxes on lottery winnings for both residents and non residents and others only charge residents.

The worst state to win the lottery in is New York, where residents would be subject to a state tax of 8.82 percent. That would bring the cash pile down to $574 million.

The state with the next highest lottery tax bill is Maryland, where the state withholds is 8.75 percent for residents and 7 percent for non-Maryland residents. Those winners would be left with $575 million and $586 million,
respectively. The tax bill in Washington D.C. is nearly as large, bringing the prize down to $577 million. The tax rate of neighboring state Virginia is a little less, however, leaving the prize at about $616 million.

Winners in some other areas could walk away with a bigger share of the winnings. Ten states, along with Puerto Rico and the U.S. Virgin Islands, don’t charge any state taxes on lottery winnings:
California, Delaware, Florida, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington and Wyoming. Those winners would end up with a pot of about $651 million.


FULL STORY SOURCE
 

CareyG

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#2
The worst state to win the lottery in is New York, where residents would be subject to a state tax of 8.82 percent. That would bring the cash pile down to $574 million.
Of course its NY!!!! I hate my state!! huhhwtff
 

dani3839

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#3
yeah taxes on $1.4 billion would be crazy!! but I'd love to win just the same :)

:ohboy
 

WNBillionaire

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#7
That's funny how the Powerball is a big false advertisement scheme. The fact that the lottery is state run and that the government taxes the jackpot BEFORE giving it to the winner is like saying "Well, we give you a gazillion dollars, but we keep 35% of it". Why don't they simply say the jackpot as it is that remains for the winner in their pocket???

Oh yes, I see, it gives them good publicity to say "we have a 1.6 billion dollars jackpot". The whole world was talking about that. But in fact, there were 3 people who each got approx 350 million. Not that I'd spit on it, but to me it just looks like a damp squib. If at least the jackpot was not shared...
 

CareyG

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#8
I agree!! Hate the whole tax bullcrap, just announce the jackpot that we will actually win not the whole damn amount that we will never see if we win!!
 

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