Depending on where you live, Saturday's Powerball lottery winnings can vary by as much as $33.3 million due to local taxes.
The total jackpot is $378 million, but the amount potential winners take home will be much less after paying state and federal taxes.
All winners in the U.S. must pay automatic federal withholding taxes of 24%. However, since you'd be in the highest possible tax bracket by winning millions of dollars, you almost certainly would owe 37% in federal taxes for 2022.
Lottery winnings are also taxed in most states, typically at a rate between 3% and 8%.
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However, residents of eight states wouldn't owe any state taxes on lottery winnings, granting them the highest payouts. These eight states are:
- California
- Florida
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
Five states don't participate in the national lottery at all: Alabama, Alaska, Hawaii, Nevada and Utah.
Money Report
In the participating states with no state taxes, winners would receive the highest possible payout of $238,140,000, assuming a 37% federal tax rate, according Powerball's calculations.
That's $33,339,600 more than you'd get paid in New York, where the maximum jackpot payout is $204,800,400 after taxes. New York has a state tax of 8.82%, the highest of all the states that participate in the lottery.
The exact amount you win also varies based on whether you choose a smaller lump sum payout or an annuity paid in full over 30 years. Many winners chose the lump sum option since that can be invested right away.
If you end up somehow beating the odds and taking home the jackpot, here's what you can do with your winnings.
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