If you buy a winning Powerball ticket in California, Delaware, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington or Wyoming, there’s some good news for you: those states do not tax lottery winnings. In Ohio, the state taxes lottery winnings at 3.99%, so you will take home $379,884,415. Additional taxes are charged if you live in New York City or Yonkers. The lump sum that most New York residents would get after federal and state taxes would be $335,404,745. If you live in New York, get out your wallet, because that state taxes lottery winnings at 8.82%. That means you get $368,555,295 after taxes.
If you live in Georgia, your state tax rate for lottery winnings is 5.75%. 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.
