With the fourth largest Powerball jackpot up for grabs tonight it's shocking that someone would find a downside to winning it, but someone did. As far as I'm concerned there is really not a downside to winning $500 million but as you start dreaming about how you will spend the millions one financial blog broke down what state would be the worst to win it in.

Every winner is subjected to a 25% federal withholding tax.  So.  Really you would be winning $306 million, but if you want the lump sum it would look more like $229.5 million. I'm still not seeing a terrible downside but if you are in New York that's where the biggest initial tax hit will get you.  For New Yorkers that $500 million will go down to $202,510,800 and we won't even talk about how that shrinks even more if you live in New York City.

A resident of Maryland and D.C. could see a check in the $205 million range.

What does Colorado look like according to the website USAmega.com?

 

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Credit: USAmega.com
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