Don’t Buy Your Next Powerball Ticket in Minnesota
How far would you be willing to drive to save some money?
You might be willing to schlep across town to save five or ten bucks on a tank of gas or a nice dinner but other than that you'll probably stay close to home.
But what if we were talking about putting an additional six-figure amount in your pocket just for putting in some windshield time?
Now how far would you venture from home?
When it comes to buying a Powerball ticket, that scenario is quite real.
We're still a ways away from playing for one of the biggest jackpots of all time, but with the current top prize of $400 million, where you buy your ticket makes a big difference in what you could potentially walk away with.
While the Powerball rules are the same in all 45 states where its played, how jackpots get paid out very widely from state to state.
Five states tax lottery winnings at right around ten percent.
One of those is Minnesota.
Lottery players in the North Star State fork over the fifth-highest percentage of their jackpot winnings right off the top.
STATES WITH THE HIGHEST TAXES ON LOTTERY WINNINGS
- New York: 10.9%
- New Jersey: 10.75%
- Washington, D.C.: 10.75%
- Oregon: 9.9%
- Minnesota: 9.85%
Translation: the current lump payout on the $400 jackpot is $207.1 million. That means you would immediately be giving up $266,935 to the state of Minnesota.
Yes, you'd still have $206.8 million, but if you're willing to take a road trip you can have it all.
Heading to neighboring South Dakota, where the Mount Rushmore State is one of eight that do not take anything from lottery winners.
STATES WITH NO TAXES ON LOTTERY WINNINGS
- New Hampshire
- South Dakota
Unfortunately, no matter where you buy you're winning ticket, one thing is certain: the Feds are going to get theirs. At least 37 percent according to the latest estimates.