A Powerball player in California hit the jackpot last night, winning $1.08 billion, the third-largest take of its type in history.
The single ticket was
The prize is subject to 37% federal income taxes as well as state and local taxes depending on the location of the winner. California may have some of the highest personal income taxes in the country, but it's one of the few states that doesn't tax lottery wins.
New York by contrast is one of the worst places to be a lottery winner — levying a 10.9% tax, with New York City residents paying an extra 3.9%. In New Jersey, the top tax rate is 10.75%.
The winner emerged after 39 drawings of the jackpot run, according to Powerball. They can opt for an annuitized $1.08 billion or a lump sum of $558.1 million. Under the annuity option, they will get one immediate payment followed by 29 annual payments that increase by 5% each year.
The biggest winner of the Powerball jackpot — $2 billion in November, was also based in California, which gets a cut of the ticket sales for its public schools.
