Where you buy your lottery ticket could cost you $147 million. Here are the eight best states to buy a Mega Millions ticket.
The cash payout is much less than the annuity, but it's often chosen since it can be reinvested right away.
The cash payout is $77.1 million more in tax-free states than in New York, the most-taxed state. For the annuity, the difference is just over $147 million. Where you buy the ticket matters, too: If you buy a winning ticket outside your state or district, you will be subjected to state taxes for the state in which the ticket is purchased. Generally speaking, your home state will require you to report out-of-state winnings,That means a ticket purchased in Oregon — which has state tax of 8% on jackpot winnings — would be worth about $70 million less than a ticket bought in California, which doesn't charge state taxes on jackpots.
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