A Powerball prize in WA pays more than one in OR, at least until - KPTV - FOX 12

A Powerball prize in WA pays more than one in OR, at least until tax season

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PORTLAND, OR (KPTV) -

If you can match all six numbers in Wednesday’s record Powerball drawing, it may be more profitable if you buy the ticket on the north side of the Columbia River.

The jackpot is currently sitting at $1.4 billion for the annuity prize, which would be paid out over 30 years, or $868 million if you take all of the winnings at once with the lump sum option.

Regardless of where the winning ticket is bought, the person would owe 39.6 percent of the winnings to the federal government, 25 percent of which would be held out from the prize automatically.

So even after the initial withholding, the winner will owe Uncle Sam another $204 million, or $126.6 million if you want the lump sum.

The differences come when you look at the state withholding and taxes.

For any prize greater than $5,000, the Oregon Lottery automatically holds back 8 percent of the winnings for taxes. That translates to $112 million for Wednesday jackpot, or $69.4 million if you want the winnings all at once.

The catch is that winnings are taxed like income in Oregon, meaning that for this jackpot most of the prize would be taxed at 9.9 percent, and an Oregon winner would still owe the state $26.5 million, or $16.4 million for the lump payout.

For those feeling luckier if they buy their ticket in Washington, you will get more money up front, as Washington has no withholding for lottery winnings. If you also live in Washington, you only have to cover the remaining federal taxes, meaning your final winnings after taxes will top $845.6 million for the annuity or $524.3 million for the lump sum.

For those residents who are thinking about crossing state lines to get their numbers, be careful.

While someone from Oregon buying tickets in Washington would get more money upfront, they will still have to pay the full bill to state tax collectors.

As for Washington residents heading south for their tickets, Oregon will still withhold the 8 percent, even though Washington does not collect income tax.

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