Maine
Maine’s Mega Millions winner would be richer if they got the ticket a mile away
The one that purchased the successful $1.35 billion Mega Hundreds of thousands jackpot ticket at a Lebanon retailer already beat 1-in-302.6 million odds, however they might have been luckier in the event that they purchased the ticket only a mile or so away.
The haul from the life-changing prize is smaller in Maine than it could be in New Hampshire, which has no revenue tax. However taxes are decrease than they might be about 35 miles away in Massachusetts, the place voters accredited a “millionaires tax” that took impact this yr.
Final week’s Mega Hundreds of thousands winner has the choice of taking the complete prize over 30 annuity funds or a lump-sum worth of $723.5 million. However federal revenue taxes eat up a lot of that, decreasing the payout to roughly $816.7 million over 30 years or $455.8 million directly, based on calculations from USAMega.com.
That is earlier than state taxes are available. Maine withholds 5 p.c from massive lottery prizes and the winner would fall into the state’s high revenue tax bracket at 7.15 p.c, that means the annual funds that means the annuity funds would add as much as about $754 million — or $25.1 million per yr. The lump sum could be $404.1 million.
In New Hampshire, the comparable figures could be $850.3 million over 30 years and $455 million as a lump sum. The upper taxes in Massachusetts would drop the pots right down to $729 million or $390.7 million, respectively.
All of which means that the winner of the jackpot is just not the one winner. Gov. Janet Mills and lawmakers ought to be pleased as nicely, as a result of the state will get roughly $52 million in revenue taxes. That will roughly cowl the estimated price of two years of free meals in Maine faculties, noted James Myall, an analyst for the liberal Maine Heart for Financial Coverage.
It additionally highlights Maine’s high revenue tax fee of seven.15 p.c, which applies to the brand new lottery winner in addition to these far lower than them. It kicks in on revenue above $54,450 per yr for single filers and above $108,900 for {couples}.
Maine’s victory led New Hampshire Gov. Chris Sununu to needle Mills over the revenue tax hole, saying the mile between Lebanon and the New Hampshire line was an costly one.
“Congrats on the windfall, @GovJanetMills …however we’ll follow no revenue tax,” he tweeted.