ST. LOUIS (KPLR) - When the Powerball jackpot soars into the arena of ridiculous amounts of money, few people care about how much of the jackpot goes to taxes. What many players don’t realize is the jackpot amount could very significantly depending on where you live.
Illinois residents pay a lower tax rate than Missouri residents. A $403 million Illinois winner could walk away with approximately a million dollars more than a Missouri winner. The tax rate for a high earner in Missouri is 6% compared to 3.75% in Illinois. Tax experts say that’s not the end of the story. They say Missouri offers more deductions than Illinois.
“While Missouri does have a higher tax rate, you’re entitled to more exemptions and deductions,” said Laurel Ruhmann, H&R Block Master Tax Advisor in Fairview Heights, IL. “So it really can lower it quite dramatically for you.”
Ruhmann says the ultimate amount the jackpot winner takes home will vary depending on each taxpayer’s situation.