Alabama car tags outnumbered Georgia ones in the parking lot at times and a line for ticket purchases stretched across the store. In Georgia, a billboard along Interstate 85 beckons motorists to stop at a gas station billing itself as the ”#1 LOTTERY STORE” - 2 miles (3 kilometers) from the Alabama-Georgia line.

“I’m pretty sure the people of Florida, Tennessee, Mississippi and Georgia appreciate all of our contributions to their roads, bridges, education system and many other things they spend that money on,” said Democratic legislator Chris England, from Tuscaloosa, Alabama. A mix of reasons have kept them away, including objections from conservatives, concerns about the impact on low-income families or a desire not to compete with existing gaming operations. “I think it’s ridiculous that we have to drive to get a lottery ticket,” Williams, 67, said.įive states - Utah, Nevada, Hawaii, Alaska and Alabama - do not have a lottery. But in some of the five states without a lottery, envious bystanders are crossing state lines or sending ticket money across them to friends and family, hoping to get in on the action. history has people around the country clamoring for a chance to win. It's also worth noting that there are five states that do not participate in the Powerball lottery at all: Alabama, Alaska, Hawaii, Nevada and Utah.Īssuming a top federal tax rate of 37%, here's the after-tax amount you'd take home in each state and Washington, D.C., if you won the $1 billion jackpot, for both the lump sum and annuity option, according to was one of many Alabama ticket-buyers flooding across state lines Thursday. And eight states don't charge income tax on lottery winnings: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

Then you have state income taxes, which range from 2.9% to 10.9% depending on which state you live in. However, winners will almost certainly pay another 13% in federal taxes when they file their tax return, as the millions of dollars in winnings will put them in the top tax bracket of 37%. There are two payout options: The full jackpot amount spread out over 30 years as an annual payment, or just over half that amount as an upfront lump sum payment.Īll winners pay an automatic 24% federal withholding tax on their winnings, which is considered income.

Powerball's next draw is Wednesday night at 10:59 p.m.

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