Rules vary according to the applicable laws and regulations in the jurisdiction where the ticket is sold, and the winner's residence (e.g. if a New Jerseyan wins on a ticket bought near their workplace in Manhattan). Mega Millions winnings are exempt from state income tax in California; while Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington state, and Wyoming do not have an income tax. On the other hand, some residents of New York City and Yonkers, New York pay three levels of income tax, as these cities levy income taxes.
On January 15, 2012, the price of each basic Powerball play doubled to $2, while PowerPlay games became $3; the minimum jackpot doubled to $40 million. A non-jackpot play matching the five white balls won $1 million. The red balls decreased from 39 to 35. The drawings were moved from Universal Studios Orlando to the Florida Lottery’s studios in Tallahassee. Sam Arlen served as host, with Alexa Fuentes substituting.
The structure of the draw is one which regular lottery players will be very familiar with; players must pick 5 regular numbers from a pool with a total of 69 numbers and in addition to these regular number picks, you also choose one bonus ball (known as the Powerball) from a pool of 26. These two pools of numbers are mutually exclusive and remain completely separate throughout the drawing procedure. In order to jackpot the US Powerball, you need to match all 5 regular numbers and the Powerball. Do this and you are instant Powerball millionaire – it’s as simple as that!