NJ State Tax on Lottery Winnings

Reply #3

noise-gate — Sun, 21 Apr 2013 02:19:53 GMT

It pays to know, and to think you got the answer for free.

Hope you win that 9 million you after..and then some.

Reply #2

ineed9million — Sat, 20 Apr 2013 13:01:19 GMT

Thanks, Todd! Great info.

Reply #1

Todd — Sat, 20 Apr 2013 12:28:45 GMT

The 3% is the amount the NJ Lottery withholds at time of prize payout. The withholding amount had not been tested by a big jackpot winner in NJ until this latest Powerball winner. That is why it has changed on USA Mega.

The 10.8% was the top state income tax rate at the time the law was introduced in 2009. Currently, the top rate in NJ is 8.9%, so that is the final rate that somebody like the latest NJ Powerball winner would ultimately pay by the end of the year.

NJ State Tax on Lottery Winnings

ineed9million — Sat, 20 Apr 2013 12:04:38 GMT

Last I checked the state tax on lottery winnings in NJ was 10.8%. This morning I checked USA Mega for the current Powerball jackpot analysis and the site states the state tax is 3%. Am I missing something