The list includes Alabama, Utah, Nevada, Mississippi, Hawaii, and Alaska. It is worth noting that six states do not even offer lotteries. Other states, however, can have rates up to 8.82%. The taxes vary significantly because some states don’t impose taxes on players. These will be charged in the state where you purchase the ticket. State taxes are another form of tax that lottery winners in the US can expect.
They might be able to help you to find a way to qualify for deductions and not end up paying such large sums. Consider hiring a tax expert to help you with paying taxes properly. If you end up in the top bracket, and that is often the case when jackpots are won, you might pay up to 37% on taxes. The rate for non-residents is higher and set to 30%.
It is worth noting that the non-residents also need to pay a federal tax.
