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Powerball Jackpot: Best and Worst States for Winners

CatLane / Getty Images
CatLane / Getty Images

The Powerball lottery set a record in November 2022, with a drawing worth $2.04 billion. Now it is climbing again.

The drawing for Jan. 30 is worth $613 million -- putting it in the top 10 for Powerball's largest jackpots.

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While $613 million is a nice chunk of change, what ends up in the bank account can significantly change depending on where the lucky winner resides.

Indeed, while in some countries lottery winnings are not taxed, in the U.S. they are -- and it varies state by state.

According to the Powerball website, a jackpot winner may choose to receive the prize as an annuity, paid in 30 graduated payments over 29 years, or as a lump sum payment. But both prize options are prior to federal and jurisdictional taxes.

First off, all winnings over $5,000 are subject to tax withholding by lottery agencies at the rate of 24%, according to TurboTax. And, if you opt to take the winnings in a lump sum, you will be in the highest tax bracket, which is 37%.

For the previous $1.5 billion jackpot, the cash subtotal would be around $470 million after federal taxes, according to usamega.com. The annual annuity subtotal would be about $31.5 million after federal taxes.

On top of that, there are state taxes, which vary wildly. Let's take a look at the best and worst states to win the Powerball jackpot.

Florida_Powerball_iStock-537371126
Florida_Powerball_iStock-537371126

Best States To Win Powerball

There are eight states that do not tax Powerball winnings: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Pennsylvania, North Dakota, Indiana and Ohio also make our list of best states.

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Washington_Powerball_iStock-171275376
Washington_Powerball_iStock-171275376

1. California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming

If you're lucky enough to have bought your winning ticket in one of these states, you won't pay any taxes at the state level.

powerofforever / Getty Images
powerofforever / Getty Images

2. North Dakota

State tax: 2.9%

ANNUITY

  • Subtotal after federal taxes: $12,910,045

  • State taxes: $592,567

  • Annual payments: $12,317,478

  • Total net payout: $369,524,340

CASH

  • Subtotal after federal taxes: $207,307,045

  • State taxes: $9,541,000

  • Total net payout: $197,766,045

Pennsylvania_Powerball_iStock-476422716
Pennsylvania_Powerball_iStock-476422716

3. Pennsylvania

State tax: 3.07%

ANNUITY

  • Subtotal after federal taxes: $12,910,045

  • State taxes: $627,303

  • Annual payments: $12,282,742

  • Total net payout: $368,482,260

CASH

  • Subtotal after federal taxes: $207,307,045

  • State taxes: $10,100,300

  • Total net payout: $197,206,745

ChrisBoswell / Getty Images/iStockphoto
ChrisBoswell / Getty Images/iStockphoto

4. Indiana

State tax: 3.15%

ANNUITY

  • Subtotal after federal taxes: $12,910,045

  • State taxes: $643,650

  • Annual payments: $12,266,395

  • Total net payout: $367,991,850

CASH

  • Subtotal after federal taxes: $207,307,045

  • State taxes: $10,363,500

  • Total net payout: $196,943,545

Sean Pavone / Shutterstock.com
Sean Pavone / Shutterstock.com

5. Ohio

State tax: 3.99%

ANNUITY

  • Subtotal after federal taxes: $12,910,045

  • State taxes: $815,290

  • Annual payments: $12,094,755

  • Total net payout: $362,842,650

CASH

  • Subtotal after federal taxes: $207,307,045

  • State taxes: $13,127,100

  • Total net payout: $194,179,945

dennizn / Shutterstock.com
dennizn / Shutterstock.com

Worst States To Win Powerball

The five worst states for lottery taxation are New York, New Jersey, Oregon, Minnesota and Maryland. Washington, D.C., also is included in this bottom five.

Majestic_Aerials / Getty Images
Majestic_Aerials / Getty Images

5. Maryland

State tax: 8.95%

ANNUITY

  • Subtotal after federal taxes: $12,910,045

  • State taxes: $1,828,783

  • Annual payments: $11,081,262

  • Total net payout: $332,437,860

CASH

  • Subtotal after federal taxes: $207,307,045

  • State taxes: $29,445,500

  • Total net payout: $177,861,545

culbertson / Getty Images/iStockphoto
culbertson / Getty Images/iStockphoto

4. Minnesota

State tax: 9.85%

ANNUITY

  • Subtotal after federal taxes: $12,910,045

  • State taxes: $2,012,684

  • Annual payments: $10,897,362

  • Total net payout: $326,920,860

CASH

  • Subtotal after federal taxes: $207,307,045

  • State taxes: $32,406,500

  • Total net payout: $174,900,545

GarysFRP / iStock.com
GarysFRP / iStock.com

3. Oregon

State tax: 9.9%

ANNUITY

  • Subtotal after federal taxes: $12,910,045

  • State taxes: $2,022,900

  • Annual payments: $10,887,145

  • Total net payout: $326,614,350

CASH

  • Subtotal after federal taxes: $207,307,045

  • State taxes: $32,751,000

  • Total net payout: $174,736,045

Shutterstock.com
Shutterstock.com

2. New Jersey and Washington, D.C.

State/District tax: 10.75%

ANNUITY

  • Subtotal after federal taxes: $12,910,045

  • State taxes: $2,196,583

  • Annual payments: $10,713,462

  • Total net payout: $321,403,860

CASH

  • Subtotal after federal taxes: $207,307,045

  • State taxes: $35,367,500

  • Total net payout: $171,939,545

dennizn / Shutterstock.com
dennizn / Shutterstock.com

1. New York

State tax: 10.9%

ANNUITY

  • Subtotal after federal taxes: $12,910,045

  • State taxes: $2,227,233

  • Annual payments: $10,682,812

  • Total net payout: $320,484,360

CASH

  • Subtotal after federal taxes: $207,307,045

  • State taxes: $35,861,000

  • Total net payout: $171,446,045

More From GOBankingRates

This article originally appeared on GOBankingRates.com: Powerball Jackpot: Best and Worst States for Winners