No state tax windfall from the Powerball jackpot

No state tax windfall from the Powerball jackpot
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It doesn't look as if any state will receive a tax windfall after at least three people hit the $1.5 billion Powerball jackpot.


Winners of Wednesday night's drawing will split the game's largest-ever jackpot, according to CNN. But the winning tickets were sold in Florida, Tennessee and California, none of which tax lottery winnings.

Florida does not have an income tax, and Tennessee does not tax income from wages or lottery winnings. California does have an income tax but exempts lottery winnings.

The winners will still owe federal taxes. The federal government withholds 25 percent from lottery winnings, and winners will have to pay the remainder of what they owe when they file their taxes next year. The top individual tax rate is 39.6 percent.