california tax rate for gambling winnings

Nowadays, luck helps determine which communities and businesses profit from the sudden influx of lottery winners. “It is more likely to increase your taxes because of increased welfare and police costs.” “NOT A PENNY OF THAT MONEY WILL GO FOR EDUCATION,” former San Francisco Police Commissioner Don Fazackerley and others argued at the time. “EVERY PENNY OF LOTTERY PROFITS would go to PUBLIC EDUCATION.”īack in 1964, California voters shot down an earlier proposal to create a state lottery system after opponents used taxes as a scare tactic against what was known as Prop 16.

“Contrary to our opponents’ falsehoods: No lottery revenue would go to the state,” supporters argued at the time. Thirty-six other states take their cut of the winnings – including New York, Arizona and Virginia. In this case, it’s like winning a second $123 million jackpot. So will the IRS.īut there’s a surprising reason why the mystery winner is lucky they bought the richest lottery ticket ever sold in the history of the planet here instead of, say, Louisiana or Kentucky: They won’t have to deal with the state taxman in the Golden State.Ĭalifornia doesn’t charge a cent in state income tax on lottery winnings, no matter the amount. Cousins of cousins will suddenly turn up at their doorstep. Yes, everybody is waiting for the country’s newest billionaire to come forward. Station owner Joe Chahayed, 75, says the winner has not revealed themselves, but a steady stream of customers have streamed into the station, paying for gas and buying Lotto tickets. (Photo by Hans Gutknecht, Los Angeles Daily News/SCNG)Īll week long, the good residents of Altadena have been eyeing neighbors, counting co-workers who call in sick, and ringing up ex-spouses to size up who may have the single winning $2.04 billion Powerball ticket sold at Joe’s Service Center, a Mobil gas station on Woodbury Road and Fair Oaks Avenue. Chahayed received $1 million from the California Lottery for selling the $2.04 billion Powerball ticket at his Altadena gas station minimart. Joe Chahayed, owner of Joe’s Service Center in Altadena CA., works at his business Wednesday, Nov 9, 2022.

California tax rate for gambling winnings