CheckOfficial Texas Lottery Data

    Texas (TX) Lottery
    Tax & Payout Calculator

    Texas doesn't tax lottery winnings, but federal income tax applies. 24% federal tax is withheld from prizes over $5,000. Taken as cash, the next $538 million Powerball jackpot leaves a Texas winner about $139 million.

    Texas Powerball & Mega Millions Jackpots After Taxes

    What each jackpot leaves after federal tax, as one cash payment or paid yearly.

    Powerball

    Jackpot
    $538M
    Cash value
    $220.6M
    Federal tax
    $81.6M
    You keep
    About $139M

    Mega Millions

    Jackpot
    $385M
    Cash value
    $154.8M
    Federal tax
    $57.2M
    You keep
    About $97.6M

    Lotto Texas

    Jackpot
    $8.8M
    Cash value
    $4.4M
    Federal tax
    $1.6M
    You keep
    About $2.8M

    Texas Two Step

    Jackpot
    $475K
    Cash value
    $475K
    Federal tax
    $114KWithheld
    You keep
    $361KAfter withholding

    Federal tax at the 2026 rates for a single filer with no other income; Texas has no tax on lottery winnings.

    Play scratch-offs too?Up to x104 better jackpot odds

    For $50K to $5M+ jackpots on the best Texas scratch-offs. ScratchOdds ranks all 76 by today's odds.

    Get the Free AppScratchOdds

    Texas Lottery Tax Calculator

    Type your prize to see what's withheld when it's paid and what you're handed.

    $
    PrizeWithheld at claimPaid to you
    $1,000Nothing$1,000
    $5,000Nothing$5,000
    $10,000$2,400$7,600
    $50,000$12,000$38,000
    $100,000$24,000$76,000
    $1,000,000$240,000$760,000

    Every prize is taxable income. From $2,000 the lottery reports it to the IRS, and your final federal tax depends on your income, from 10% to 37%.

    Good to Know

    Texas tax on winnings 

    None

    Texas doesn't tax lottery winnings; federal tax still applies.

    Withheld when you're paid 

    24% federal over $5,000

    Smaller prizes are paid in full.

    Not a U.S. citizen or resident 

    30% withheld

    From prizes of $600 or more.

    Top federal rate 

    37% over $640,600

    $768,700 for married filing jointly. A jackpot owes most of its tax at this rate, more than the 24% withheld.

    Reported to the IRS 

    Prizes of $2,000 or more

    On Form W-2G, from 2026; it was $600 before.

    Cash or annuity 

    Your choice

    Cash is one smaller payment. The annuity pays the full jackpot yearly: 30 years for Powerball, Mega Millions and Lotto Texas.

    Reviewed by Bishop Woosley, former Director of the Arkansas Scholarship Lottery and NASPL President.

    You can't change the lottery's odds.
    You can pick better scratch-offs.

    The best Texas scratch-offs right now have up to x104 better jackpot odds for $50K to $5M+ jackpots.

    • Every Texas scratch-off ranked by today's odds
    • The best tickets for your budget and the prize you want
    • A free app, built on official Texas Lottery data
    Get the Free App
    Download on the App StoreGet it on Google Play
    The ScratchOdds app: today's best scratch-offs and the goal picker

    More Texas Lottery Help

    What each game pays, the best scratch-offs, and taxes in other states.

    Frequently Asked Questions

    Answers about the Texas Lottery

    Does Texas tax lottery winnings?
    No. Texas has no state income tax on lottery winnings, but federal income tax applies.
    What is the Texas lottery tax rate?
    Texas has no state tax on lottery winnings; federal income tax applies. 24% federal tax is withheld from prizes over $5,000; smaller prizes are paid in full. For a winner who isn't a U.S. citizen or resident, 30% federal tax is withheld from prizes of $600 or more.
    How much tax do you pay on a $1,000 lottery ticket in Texas?
    Nothing is withheld: the Texas Lottery pays the full $1,000. The prize is still taxable income, taxed at your federal rate when you file: from 10% to 37%, depending on your income.
    How much tax do you pay on a $10,000 lottery ticket in Texas?
    The Texas Lottery withholds $2,400 and pays you $7,600. The prize is still taxable income, taxed at your federal rate when you file: from 10% to 37%, depending on your income.
    How much tax do you pay on $1 million in lottery winnings in Texas?
    The Texas Lottery withholds $240,000 and pays you $760,000. The prize is still taxable income, taxed at your federal rate when you file: from 10% to 37%, depending on your income.
    How much are lottery winnings taxed?
    Lottery winnings are taxed as income. Federal rates run from 10% to 37%, and in 2026 the top rate starts at $640,600 for a single filer and $768,700 for a married couple filing jointly. What's withheld when you're paid is a down payment: on a large prize, you'll likely owe more when you file.
    Do you get a W-2G for lottery winnings?
    Yes, for prizes of $2,000 or more: the lottery reports them to the IRS on Form W-2G. The threshold was $600 before 2026. Smaller prizes are still taxable income you report.
    How much is the Powerball jackpot after taxes in Texas?
    The next Powerball jackpot is an estimated $538 million, or $220.6 million as one cash payment. After federal tax (Texas has none), the cash leaves a single winner about $139 million. Taken as 30 yearly payments, it pays about $340.4 million after taxes in all.
    How much is the Mega Millions jackpot after taxes in Texas?
    The next Mega Millions jackpot is an estimated $385 million, or $154.8 million as one cash payment. After federal tax (Texas has none), the cash leaves a single winner about $97.6 million. Taken as 30 yearly payments, it pays about $244 million after taxes in all.
    How much is the Lotto Texas jackpot after taxes in Texas?
    The next Lotto Texas jackpot is an estimated $8.8 million, or $4.4 million as one cash payment. After federal tax (Texas has none), the cash leaves a single winner about $2.8 million.
    What is the difference between the cash option and the annuity?
    The cash option is one payment, smaller than the advertised jackpot: the next Powerball jackpot's is 41% of it, all taxed in one year. The annuity pays the full jackpot in 30 yearly payments, each 5% larger than the last, each taxed in the year it's paid.
    Are scratch-off winnings taxed in Texas?
    Yes, the same as draw game prizes: scratch-off winnings are taxable income, and 24% federal tax is withheld from prizes over $5,000. Texas doesn't tax them.

    Still have questions? Email our support team

    ScratchOdds background
    ScratchOdds mobile app download
    Download Free

    Ready to Play Smarter?

    Join 50,000+ players who've stopped guessing and started winning more. Download free—no credit card, no commitment. Your state's best games are waiting.

    Free forever - No card required
    Real-time odds from 41+ states
    Optimized for your budget & goal
    Find best game in 30 seconds
    Start Playing Smarter
    Download on the App StoreGet it on Google Play
    100% Legal & Free Forever