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California is one of the highest-taxed states but whoever won the $2.04 billion Powerball jackpot last week is probably glad they don't live elsewhere. Unlike 36 other states, California doesn't charge state income tax on lottery winnings, which is "like winning a second $123 million jackpot" for the Powerball winner, the San Jose Mercury News reports. California is one of nine states, including Florida and Texas, not to tax lottery winnings. Five others don't have lotteries, including Nevada and Utah. In California, voters approved a state lottery system in a 1984 ballot measure that included a state tax exemption.