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Which three states will bring in a substantial profit from winning Mega Millions winners who bought tickets there?

Which three states will bring in a substantial profit from winning Mega Millions winners who bought tickets there?

Answer: Illinois, Kansas and Maryland

 

Each state’s profit will be different, as will the amount going to the retailer who sold the winning tickets, according to stateline.org, which also reported that while lottery winnings are subject to state income tax in most states, withholding tax varies.

Withholding tax in Illinois and Kansas is 5 percent, and Maryland has a 9.25 percent withholding rate for residents and 7.5 percent for non-residents, meaning an out-of-state winner who bought a ticket in those two states could face double withholding. That is in addition to the cut that the federal government will get. Winnings in excess of $5,000 are subject to a 25 percent federal withholding tax.