Texas Lottery Tax Calculator
Great news! Texas does not tax lottery winnings. You only pay federal taxes.
Texas has no state lottery tax
Texas is one of nine states that do not impose state income tax on lottery winnings. Winners only owe federal taxes — up to 37% at the highest bracket.
Texas lottery winners pay only federal income tax. The IRS withholds 24% on prizes over $5,000, and your final federal bill may reach 37% based on your total annual income.
Enter Your Winnings
Lump sum is approximately 55% of the advertised jackpot
Your estimated take-home winnings
$387,953
After 29.46% effective tax rate
Tax Breakdown
Cash value before taxes
Winnings Distribution
Frequently Asked Questions — Texas Lottery Taxes
How much tax do I pay on a $1 million lottery win in Texas?
On a $1 million lottery win in Texas, you would choose between the lump sum (approximately $550,000 cash value) or annuity payments totaling $1 million over 29 years. For the lump sum, the federal government withholds 24% upfront ($132,000), and Texas collects no state tax. Your estimated take-home lump sum would be approximately $418,000 before accounting for your total annual income, which could push you into a higher federal bracket.
Does Texas tax lottery winnings?
No. Texas does not impose a state income tax on lottery winnings. Winners in Texas only owe federal income taxes on their prizes. The federal government withholds 24% on prizes over $5,000 and the top federal marginal rate is 37%.
What is the lottery tax rate in Texas?
In Texas, there is no state income tax on lottery winnings (0% state rate). The only tax owed is federal: 24% is withheld upfront on prizes over $5,000, and the total federal tax can reach 37% for the highest earners. The maximum total tax rate on lottery winnings in Texas is 37%.
Lottery Tax in Texas
Texas is one of nine states that do not impose a state income tax on lottery winnings. If you win a lottery prize in Texas, you will only pay federal income taxes. The federal government withholds 24% upfront on winnings over $5,000, and your total federal tax liability may be up to 37% depending on your total annual income.
Texas Lottery — Key Facts for Winners
Texas has no state income tax, meaning lottery winners keep more of their winnings compared to most other states. Only federal taxes apply to Texas lottery prizes. The Texas Lottery is one of the largest in the country by sales, and winners benefit from the same no-income-tax environment that attracts many residents and businesses to the Lone Star State.
Tax Sources & References
Federal withholding rates are based on IRS Topic No. 419 — Gambling Income and Losses. State tax rates are sourced from each state's department of revenue. Official Texas lottery rules and prize information are published on the Texas Lottery official website.
Disclaimer
This calculator provides estimates only and does not constitute tax advice. Actual tax amounts may vary based on your individual circumstances, deductions, and other income. Please consult a qualified tax professional for advice specific to your situation.