Bloomberg Tax
Nov. 8, 2022, 7:38 PM

California Powerball Winner Will Save Millions in State Taxes

Mackenzie Hawkins
Mackenzie Hawkins
Bloomberg News

The winner of the $2.04 billion Powerball jackpot could save themselves a potentially hefty tax bill.

California lottery officials said the winning ticket, which had all six Powerball numbers, was drawn at Joe’s Service Center in Altadena, an area in north Los Angeles County. As of Tuesday afternoon, the winner had not yet been identified.

The prize is subject to 37% federal income taxes as well as state and local levies depending on where the winner lives. California is one of only a few states that doesn’t tax lottery winnings, according to USAMega.com. By comparison, New York charges a state tax ...

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