In Tennessee, the ticket included the Power Play option for an additional $1 million, which increased the winnings to $2 million. The Powerball jackpot has been growing for more than three months, reflecting the long odds of 1 in 292.2 million of winning the top prize. State taxes on lottery winningsThere are also state taxes in most jurisdictions, which range from a low 2.9% in North Dakota to 10.9% in New York. But if you're lucky enough to live in California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington or Wyoming, you won't pay any state taxes on your winnings. If you win the jackpot, experts suggest working with a tax professional, financial advisor and estate planning attorney immediately.