The odds and the advertised jackpot are the same wherever you buy a Powerball or Mega Millions ticket. What changes from state to state is how much of a prize you keep and whether your name is made public. Two rules matter most, and the second is where most people go wrong.
- Privacy follows the ticket. The state that sold the ticket decides whether the winner's name is released.
- Tax follows you. The state that sold the ticket may withhold tax, but your home state taxes its residents on their winnings wherever the ticket was bought.
So the rankings below matter most to people who live in these states, or who care about privacy more than tax.
How we compared the states
We looked at three things for each state, using its lottery's published rules and state tax sources: whether it taxes lottery prizes, whether winners can keep their names private, and how long you have to claim. Tax comes first because it moves the most money. Federal tax is the same everywhere (24% withheld on prizes over $5,000, and up to 37% owed at filing), so it doesn't change the comparison. For every state's rate, see our lottery tax rates by state table.
Which states are best for lottery winners?
| State | State tax on lottery prizes | Can winners stay anonymous? | Claim period (draw games) |
|---|---|---|---|
| Wyoming | None | Yes, on request, at any prize level | 180 days |
| Texas | None | Yes, for prizes of $1 million or more | 180 days |
| South Dakota | None | On request, but released under an open-records request | 180 days |
| Florida | None | Name withheld for 90 days on prizes of $250,000 or more | 180 days |
Wyoming
Wyoming has no state income tax, and the Wyoming Lottery says it "will honor all requests for anonymity from winners," with no minimum prize. Winning tickets are good for 180 days from the drawing. The catch is the game list: Wyoming sells Powerball, Mega Millions and its own draw games, but its law doesn't allow scratch-offs.
Texas
Texas has no state income tax, so it doesn't tax lottery prizes. Under Texas Government Code §466.411 a winner of $1 million or more can choose, on the day they claim, to keep their identifying information from being released. The protection is weaker if you take the annuity. In that case the law lets the lottery release your information from the 30th day after you claim. Your city or county of residence can be released either way. Draw-game prizes expire 180 days after the draw.
South Dakota
The South Dakota Lottery's FAQ says the state doesn't tax lottery winnings and will honor a request for anonymity. It also says that if someone files an open-records request, it must release the winner's name, city, state, game and prize amount. The retailer, game and prize amount are released regardless. You have 180 days from the draw to claim.
Florida
Florida has no state income tax, but its privacy protection is short-lived. Under Florida Statutes §24.1051, the name of a winner of $250,000 or more is confidential for 90 days from the date of claim, after which it becomes public. That exemption is due to be repealed on October 2, 2027 unless the Legislature renews it. Draw-game prizes must be claimed within 180 days, and jackpot winners have a 60-day window to choose the cash option.
Other states with no lottery tax
New Hampshire, Tennessee and Washington also don't tax lottery prizes, and California exempts prizes from its own lottery (though it taxes residents on winnings from other states). California has no anonymity law, so winners' names can be made public. If privacy matters as much as tax, some taxing states are worth knowing about: Virginia has let winners claim anonymously since July 1, 2026, the Oregon Lottery can't disclose a winner's name and address without written permission under HB 3115, and Minnesota treats the names and cities of winners of more than $10,000 as private data.
Which states are worst for lottery winners?
New York
New York's top income tax rate is 10.9%, on taxable income over $25 million, and New York City residents pay up to 3.876% on top. The state has no law letting lottery winners stay anonymous, and the New York Lottery publicly announces large winners. A bill to change that, S2613, passed the state Senate in February 2025 and again in March 2026 but is still in an Assembly committee.
To put a number on it: a $500 million Powerball jackpot currently has a cash value of roughly $205 million, since recent cash values have run about 41% of the advertised jackpot. New York State income tax on that comes to roughly $22 million, which a Texas winner doesn't pay. An NYC resident would owe about $8 million more in city tax. Federal tax applies to both. The details are in New York lottery taxes.
Wisconsin
The Wisconsin Lottery withholds 7.65% state tax on prizes of $2,000 or more. Winners can't stay anonymous: the lottery says it must release a winner's name and city on request. Draw-game prizes expire after 180 days.
Massachusetts
Massachusetts withholds 5% state tax on lottery prizes, treats winners' names as public records, and gives you a year to claim. The long claim period is the one advantage.
Maryland
Maryland has the steepest withholding of the anonymity states. Since July 1, 2025 it has withheld 9.5% from residents and 8.75% from nonresidents on winnings over $5,000. In its favor, it's one of the states that keep winners' names private.
Can you buy a ticket in a no-tax state to avoid your home state's tax?
Not unless you actually live there. A no-tax state won't withhold state tax when you claim, but your home state taxes its residents on income from every source, including a lottery prize won somewhere else. A New Yorker who wins with a ticket bought in Florida still owes New York. If you buy in a state that does tax nonresidents, your home state usually gives a credit for the tax paid there, so you end up paying roughly the higher of the two rates rather than both.
Buying out of state saves tax only if you genuinely live in the lower-tax state. A residency change made around the time of a big win is the kind of thing state tax departments look at closely. Claiming rules for out-of-state buyers are in buying lottery tickets in another state.
Can you buy out of state to stay anonymous?
Often, yes. Because the selling state's disclosure rules apply, a ticket bought in Wyoming or Virginia is covered by their anonymity rules even if you live in a state that publishes names. You still have to claim with the lottery that sold the ticket, and you still owe your home state's income tax. Our anonymous lottery winners guide has the rules for every state.
Best states for lottery winners FAQ
Which states don't tax lottery winnings?
Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming don't tax lottery prizes, and California exempts prizes from its own lottery. Federal tax still applies everywhere: 24% is withheld on prizes over $5,000, and big winners owe up to 37%.
Do I pay my home state's tax if I buy a lottery ticket in another state?
Yes. States tax their residents on income from all sources, so a win in Florida or Texas is still taxable at home. If the state that sold the ticket also taxes it, your home state usually gives a credit for that tax.
Which states let lottery winners stay anonymous?
Rules vary. Wyoming honors all anonymity requests; Virginia has allowed anonymous claims since July 2026; Oregon can't release names without permission; Texas protects prizes of $1 million or more; Minnesota keeps winners of more than $10,000 private; South Dakota honors requests but releases names under open-records requests; Florida withholds names for only 90 days.
Which state has the highest tax on lottery winnings?
New York, with a top state income tax rate of 10.9% and up to 3.876% more for New York City residents. On a $500 million Powerball jackpot taken as cash, New York State tax alone would be roughly $22 million.
How long do you have to claim a Powerball prize?
It depends on the state that sold the ticket, from 90 days to one year. Florida, South Dakota, Texas, Wisconsin and Wyoming allow 180 days; Massachusetts allows one year.
For the claim deadline, tax rate and anonymity rule in a specific state, see its FAQ on our state results pages, starting from the homepage. Laws change, so confirm with the lottery that sold your ticket, and get tax advice before you claim a large prize.
Sources: Texas Government Code §466.411 and Texas Lottery claim rules, Wyoming Lottery FAQ, South Dakota Lottery FAQ, Florida Statutes §24.1051 and Florida Lottery winner's guide, Virginia, Oregon, Minnesota, Wisconsin and Massachusetts lottery claim pages, Maryland Comptroller Tax Alert 01-JUL-2025, New York State IT-201 instructions (2025 rate schedules), Powerball FAQ and our results feed for cash values.
