The difference, of course, is that New Jersey has some of the lowest gaming tax rates in the U.S., while Pennsylvania has some of the highest. That might sound like a lot, but neighboring Pennsylvania collected $1.1 billion in taxes - well more than triple New Jersey’s take - on a slightly lower $2.65 billion from the same revenue sources for the Keystone State’s casinos (plus a small amount from truck stop video gaming terminals and fantasy sports). Read our full guide here More Informationįor more information see the official New Jersey Lottery guide here: Jersey took in $302.7 million in tax revenue in 2020 off $2.88 billion in gross operating revenue from casino brick-and-mortar, online casino, and sports betting operations. What about Lump Sum money invested wisely? This is done as a percentage of ticket sales - the more tickets sold the bigger the jackpot and the bigger the cash value. This means if you win Mega Millions, Powerball or a state lottery you will pay the same rate of taxes. All gambling winnings are treated equally. Is the tax rate different for different lotteries? New Jersey currently has a gambling tax rate of 8%. These vary from 0% at the lowest to 8.82% at the highest. Individual states have their own taxes on lottery winnings. We would always recommend checking with an independent financial advisor before choosing to sell your annuity.

However, in the long run you are likely to make less money. If you select annuity and then you change your mind you may have the option of selling your annuity payments. The returns from this investment add to the increased jackpot amount. The idea behind the annuity option is that the money is invested on your behalf.

This varies winner to winner and we would always recommend consulting an independent financial advisor first. What are the main considerations when deciding between cash & annuity options? This means the ‘Net Payout’ you see above would need to be added to your personal income tax return for the year. Gambling/lottery winnings are subject to New Jersey individual income tax to the extent that they are included in your adjusted gross income. Are lottery winnings subject to New Jersey individual income tax?

Nj gambling tax