Texas lottery tax calculator
Federal tax at your 2026 bracket (up to 37%) plus no state income tax on these prizes. A single filer with no other income keeps $679,999.75 of a $1,000,000 prize: $320,000.25 federal and $0.00 Texas tax.
Checked 2026-11-06. Source: Texas Comptroller: Texas is open for small business.
Federal tax at 2026 rates plus Texas's treatment of lottery prizes (no state tax). Enter the amount you receive this year: the cash option, or one annuity payment.
21+ in most states. If gambling stops being fun, free confidential help is available 24/7: call or text 1-800-GAMBLER (National Council on Problem Gambling).
How Texas taxes lottery prizes
- Texas has no state personal income tax, so lottery prizes carry federal tax only.
Take-home by prize size in Texas
| Prize | Federal tax | TX tax | Withheld at claim | Take-home |
|---|---|---|---|---|
| $10,000.00 | $0.00 | $0.00 | $2,400.00 | $10,000.00 |
| $100,000.00 | $13,170.00 | $0.00 | $24,000.00 | $86,830.00 |
| $1,000,000.00 | $320,000.25 | $0.00 | $240,000.00 | $679,999.75 |
| $10,000,000.00 | $3,650,000.25 | $0.00 | $2,400,000.00 | $6,349,999.75 |
| $100,000,000.00 | $36,950,000.25 | $0.00 | $24,000,000.00 | $63,049,999.75 |
Single filer, no other income, federal standard deduction and 2026 brackets. Local (city or county) taxes are not included.
Questions
How much tax do you pay on lottery winnings in Texas?
Federal tax at your 2026 bracket (up to 37%) plus no state income tax on these prizes. A single filer with no other income keeps $679,999.75 of a $1,000,000 prize: $320,000.25 federal and $0.00 Texas tax.
Does Texas withhold state tax from lottery prizes?
No state tax applies, so there is no state withholding. The lottery still withholds 24% federal tax on prizes over $5,000.
Is the 24% federal withholding the whole federal tax?
No. It is a down payment. Large prizes fall mostly into the 37% bracket, so the rest is due when you file.
Texas sources
Checked 2026-11-06. Other states: Pennsylvania, Michigan, California, Illinois, Arizona, Virginia, Oregon, Florida, Georgia, Wisconsin, Massachusetts, Colorado.
Sources
- Rev. Proc. 2025-32, section 4.01 (2026 tax rate tables) and 4.14 (standard deduction)
- IRS proposed §1.165-10, Internal Revenue Bulletin 2026-19 (90% wagering loss limit, P.L. 119-21 §70114)
- Instructions for Forms W-2G and 5754 (Rev. January 2026)
- IRS Topic no. 419, Gambling income and losses
Checked 2026-11-06. The 90% rule is law (P.L. 119-21); the IRS regulation implementing it is still proposed. Bills to restore the 100% deduction have been introduced in Congress but not passed. This is an estimate for planning, not tax advice; a tax professional can check your full return.