The states that take nothing
Eight states have no state income tax that reaches a lottery prize: Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
California is the interesting one. It has some of the highest income tax rates in the country, and it exempts California Lottery winnings from state income tax entirely. A jackpot won in California is taxed federally and not at all by the state.
The states that take the most
New York leads at 10.9 percent, and a New York City resident adds another 3.876 percent in local tax. New Jersey and the District of Columbia are both at 10.75 percent. Oregon takes 9.9 percent and Minnesota 9.85 percent.
On the current jackpot, the difference between a Texas winner and a New York City winner is over fourteen million dollars on the cash option alone.
Where the tax is actually owed
This is the part that catches people out. The state that sold the ticket taxes the prize, and your home state taxes your income. They are not always the same state.
Most states give a credit for tax already paid elsewhere, so the same money is not taxed twice, but the rates differ and the paperwork is real. If you bought the ticket outside the state you live in, that is the point to bring in a tax professional rather than a calculator.
Check your own state
The state by state breakdown works the current jackpot through every state and the District of Columbia, sorted by what the cash option leaves you.