$2.04 Billion Powerball Jackpot Winning Ticket Sold in California

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California Doesn’t Tax Lottery Winnings

While the IRS will collect 24% — or $239.4 million — of the top of the federal tax withheld, California does not tax lottery winnings, according to the state’s guide to lottery winners. Thus, if the winner of the winning ticket lives in the Golden State, no state or local windfall taxes are due.

However, if the winner resides elsewhere, their state of residence will determine what they owe in their jurisdiction. These fees range from zero to over 10%, depending on the state.

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