Texas State Tax on Lottery Winnings
Free Texas lottery tax calculator for Powerball and Mega Millions. Texas has no state income tax on lottery winnings, but you still owe federal.
Current Powerball $516M jackpot, single filer
$133.98M
Actual take-home: 26.0% of what they advertise
What You'd Actually Take Home.
Lottery Tax Calculator for Powerball, Mega Millions, and Every State.
Pick your game, state, and filing status to see what you'd really keep after taxes.
Standard deduction: $16,100. All lottery income is taxed at your individual rate. This is the most common filing status for winners.
Know What a Big Lottery Jackpot Is Really Worth.
The jackpot is $516M right now. Get occasional jackpot updates showing the advertised prize, estimated lump-sum cash value, and estimated take-home after federal and state taxes.
Free to join. No spam. Unsubscribe anytime. We never sell your email.
From Advertised to Deposit, Line by Line.
Every row updates as you change the controls above. Sources cited inline.
Browse by stateAll 50 States + DC, Ranked by Lottery Tax Bite.
10 states · no lottery taxHighest: Hawaii, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Washington DC
All 50 States + DC, Ranked by Lottery Tax Bite.
Click any tile to see that state's full breakdown. Green = no state lottery tax. Red = top-bracket states.
What to Know Before Claiming a Jackpot in Texas
Texas collects no state income tax, so a jackpot winner here only owes the federal share. Texas also has one of the more detailed anonymity laws in the country. A winner of $1 million or more can elect at the time of claiming to keep their name, Social Security number, date of birth, and government ID number confidential, though their city or county of residence can still be released. That protection is not automatically permanent for an annuity payout. If the prize is paid in installments, the Lottery may release the winner's name starting 30 days after the claim. You have 180 days to claim the prize, and proceeds fund the Foundation School Fund.
- State tax rate (2026)
- None. Texas collects no state income tax on lottery winnings
- Deadline to claim
- 180 days from the draw date
- Anonymity
- Available for prizes of $1 million or more if elected at the time of claiming. Name, Social Security number, date of birth, and government ID stay confidential, though city or county of residence can still be released
- Annuity anonymity limit
- For prizes paid in installments, the Lottery may release the winner's name starting 30 days after the claim, even with the election on file
- What proceeds fund
- The Foundation School Fund for Texas public education, about $1.7 to 1.8 billion a year, plus veteran support programs
Sources: Texas Government Code Chapter 466: State Lottery · 16 Tex. Admin. Code Section 401.324: Prize Winner Election to Remain Anonymous · Texas Lottery: Supporting Education and Veterans
Texas Lottery Winnings Tax Overview
The Texas state tax on lottery winnings is 0%. Winning a Powerball or Mega Millions jackpot in Texas is one of the most tax friendly outcomes any lottery winner can hope for. Texas does not collect state income tax on lottery winnings, joining 9 other no tax states such as Alaska, California, and Florida. The federal lottery tax still applies, but no additional Texas state tax comes out of your lump sum cash option. The Texas lottery tax calculator above shows your real take home for the current jackpot.
How the Texas Lottery Payout Calculator Works
For a Texas resident who wins Powerball or Mega Millions, the lottery payout calculation starts with the lump sum cash option, which equals roughly 45% of the advertised jackpot. The IRS withholds 24% federal lottery tax at the source on the day of payout. At tax filing, the rest of the federal tax kicks in because lottery winnings push the winner into the top 37% bracket. Since Texas does not collect state income tax on lottery winnings, the final take home equals the lump sum minus the full federal lottery tax, with no additional state withholding line.
How Texas Compares to Other Lottery Tax States
Texas sits alongside 9 other no tax states for lottery winners: Alaska, California, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming. Compared to high tax states like New York or New Jersey, where lottery winners can lose more than 10% of their lump sum to the state tax line alone, Texas leaves the entire lump sum, after the federal lottery tax, in the winner's hands. This makes Texas one of the most favorable jurisdictions in the country to claim a Powerball or Mega Millions prize.
Texas Lottery Tax FAQs
Does Texas tax lottery winnings?
No. Texas does not collect state income tax on lottery winnings. Powerball and Mega Millions winners in Texas only owe the federal lottery tax, which can reach 37% at the top bracket. The lump sum cash option arrives without any Texas withholding line on top of the federal portion.
Should I take the lump sum or annuity in Texas?
Most Powerball and Mega Millions winners choose the lump sum cash option. In Texas, neither choice changes the state tax bill because Texas does not tax lottery winnings. The lottery payout calculator above shows the lump sum after taxes; the annuity choice is a separate financial decision based on personal goals and investment return assumptions.
Does Texas withhold tax on a lottery payout before payment?
The IRS withholds 24% federal lottery tax on any lottery prize above $5,000 before the winner ever sees the check. Texas adds no state withholding line because Texas does not tax lottery winnings, so the only further federal balance comes due in April when the winner files a federal return.
Can you stay anonymous if you win the lottery in Texas?
Yes, within limits. Under Texas law, a winner of $1 million or more can elect at the time of claiming to keep their name, Social Security number, date of birth, and government ID confidential, though their city or county of residence can still be disclosed. That protection is not fully permanent for an annuity payout: the Lottery may release the winner's name starting 30 days after the claim if the prize is paid in installments rather than as a lump sum.