If you win more than $1 million dollars, you will have to pay up to 37% of the prize in federal taxes. To this you must still subtract the taxes that are charged in some states of the country
While it is true that lottery prizes seem to be getting bigger and bigger, you should know that, in the United States, a good part of that money will go to the payment of federal taxes.
And it is that all winnings in lottery games that you have that are greater than $5 thousand dollars are subject to a withholding tax of 24% and up to 37% if you win more than $1 million dollars.
In addition to this, you may also have to pay some state taxes.
The five worst states where you could win the lottery because they charge you more taxes are the following:
–State tax: 8.95%
–State tax: 9.85%
–State tax: 9.9%
2. New Jersey and Washington, D.C.
–State/district tax: 10.75%
1. New York
–State tax: 10.9%
On the other hand, the states that charge the least taxes on lottery winnings are:
1. California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming
If you buy your lottery ticket in one of these states, you will not pay any taxes at the state level.
2. North Dakota
–State tax: 2.9%
–State tax: 3.07%
–State tax: 3.23%
State tax: 3.99%
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.