Louisiana Powerball Taxes: What Winners Really Keep

(KHLA - Lake Charles, Louisiana) - We'll let you know how much Louisiana's cut will be if you're fortunate enough to win this weekend's Powerball jackpot, which is $950 million.

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I'll be buying a few tickets when I get off of work tonight and cross everything I can cross hoping for a big win.

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If someone wins this Saturday, the federal government will take 24% off the top for income taxes and the winner may still owe more taxes at the end of the year. Most financial experts advise their clients to take the lump sum cash payment. It is currently sitting at $429 million. That figures out to be an initial loss of $103 million to federal taxes.

But the winner will lose even more money from the jackpot if they live in a state with income taxes. Louisiana is one of those states.

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Here are the states with a higher income tax rate than Louisiana:

Washington, D.C.: 10.75%
Maryland: 8.95%
New York: 8.82%
New Jersey: 8%
Oregon: 8%
Wisconsin: 7.65%
Minnesota: 7.25%
South Carolina: 7%
Connecticut: 6.99%
Montana: 6.90%
Idaho: 6.50%
West Virginia: 6.50%
Vermont: 6%
Rhode Island: 5.99%
New Mexico: 5.90%
Georgia: 5.75%
Arkansas: 5.50%
Iowa: 5%
Kansas: 5%
Kentucky: 5%
Maine: 5%
Massachusetts: 5%
Mississippi: 5%
Nebraska: 5%
North Carolina: 4.99%
Illinois: 4.95%
Ohio: 4.80%

The Bayou State has a 4.75% income tax rate. So, if the winner is from Louisiana and they choose to get the cash payout, they'll have to pay Louisiana $20.4 million for income taxes.

If you win this weekend and you choose to take the annuity payments, I recommend moving to one of the states below. Otherwise, if you stay in Louisiana, the state and the federal government will both get their cut every year for the next 30 years. That adds up to a ton of cash.