California does not tax lottery winnings, even though the IRS will take 22% off the top for federal tax withholding. If the winner lives in the Golden State, there would be no taxes on the windfall.
The winner's state of residency would affect what they owe. The state's levies range from zero to more than 10%.
More than the initial $239.4 million would be due at tax time because the federal rate is 37%.
If the winner was able to reduce their taxable income by making large charitable donations, another 13% would be due to the IRS. The winner will get $660 million in federal taxes.
The next drawing of the Powerball is scheduled for Wednesday evening. The Mega Millions top prize is more than 70 million dollars.
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