How much tax does Texas take from lottery winnings?

Nothing is withheld for Texas: no income tax. The federal 24% still applies to prizes over $5,000, and a winner who lives in another state may owe that state tax on it.

Do I pay federal tax on a Texas lottery prize?

Yes. The lottery withholds 24% for the IRS when the prize, less the ticket, is over $5,000, and reports prizes of $2,000 or more on Form W-2G. A large prize is taxed at up to 37% at filing, so the 24% is rarely the end of it: on a $1,000,000 prize a single filer earning $50,000 owes about $334,680 more federally, $94,680 more than was withheld.

How much of a $10,000 lottery prize do you keep in Texas?

The cheque is $7,600: $2,400 withheld federally. After the federal return, a single filer earning $50,000 keeps about $8,800.

How much would a Powerball jackpot winner keep in Texas?

On the $716 million jackpot for the October 28, 2026 drawing, a single winner taking the $307.2 million cash option keeps about $194 million after federal tax at filing. That ranks 7 of 46 lotteries. Every state, side by side.

Where do I claim a big prize in Texas?

At Texas Lottery, which must pay a prize on a ticket it sold; a ticket bought in Texas is claimed there whatever state you live in. texaslottery.com lists its claim centres and deadlines.

Texas Lottery Taxes

Texas withholds no state tax from lottery prizes. The federal 24% is still withheld from prizes over $5,000. No income tax. A Powerball jackpot winner taking the cash here keeps about $194 million of $307.2 million.

Source: Texas Constitution, Art. VIII, s. 24-a (tcss.legis.texas.gov), checked October 18, 2026.

What a prize is worth in Texas

Three prizes, as the cheque is written and after the federal return. The return is a single filer earning $50,000 besides the prize, with the 2026 brackets and standard deduction; other income changes the bill, which is what the calculator is for.

$1,000 prize

$880

kept after the federal return

Federal withheld: $0
Texas withheld: $0
Cheque: $1,000
Federal tax on it: $120

$10,000 prize

$8,800

kept after the federal return

Federal withheld: $2,400
Texas withheld: $0
Cheque: $7,600
Federal tax on it: $1,200

$1,000,000 prize

$665,320

kept after the federal return

Federal withheld: $240,000
Texas withheld: $0
Cheque: $760,000
Federal tax on it: $334,680

A $1,000 prize has nothing withheld federally and is under the $2,000 at which the lottery reports it on Form W-2G, but it is still taxable income. The withholding is a deposit against the federal bill, not the bill: on $1,000,000 the 24% falls $94,680 short, and on $1,000, with nothing withheld, about $120 is still owed.

The Powerball jackpot after Texas tax

The advertised Powerball jackpot for the October 28, 2026 drawing is $716 million, or $307.2 million as a lump sum. A single winner taking the cash in Texas:

Cheque

$233.5 million

after 24% federal withheld

Kept after filing

$193.6 million

top federal rate 37%

Annuity, first year

$6.8 million

after tax, 30 payments rising 5% a year

Rank

7 of 46

lotteries, by what a winner keeps

What the same jackpot leaves a winner in every state · Texas Powerball: add-ons and what a ticket is worth here

The federal rules, the same in every state

24% is withheld for the IRS when a prize, less the ticket, is over $5,000.
A prize of $2,000 or more (and at least 300 times the ticket) is reported on Form W-2G. The threshold was $600 until 2025.
Without a Social Security number on file, 24% backup withholding applies from the reporting threshold. A winner who is not a US resident has 30% withheld.
Every prize is taxable income, reported or not. A jackpot is taxed at up to 37% at filing.

Source: IRS, Instructions for Forms W-2G and 5754 (2026).

Work out your own number

The lottery tax calculator takes any prize, lump sum or annuity, filing status and state, with Texas's rate already in it. Claiming a prize, and the tax that comes with it covers claim deadlines and what to do first.

Texas lottery tax questions

How much tax does Texas take from lottery winnings?: Nothing is withheld for Texas: no income tax. The federal 24% still applies to prizes over $5,000, and a winner who lives in another state may owe that state tax on it.
Do I pay federal tax on a Texas lottery prize?: Yes. The lottery withholds 24% for the IRS when the prize, less the ticket, is over $5,000, and reports prizes of $2,000 or more on Form W-2G. A large prize is taxed at up to 37% at filing, so the 24% is rarely the end of it: on a $1,000,000 prize a single filer earning $50,000 owes about $334,680 more federally, $94,680 more than was withheld.
How much of a $10,000 lottery prize do you keep in Texas?: The cheque is $7,600: $2,400 withheld federally. After the federal return, a single filer earning $50,000 keeps about $8,800.
How much would a Powerball jackpot winner keep in Texas?: On the $716 million jackpot for the October 28, 2026 drawing, a single winner taking the $307.2 million cash option keeps about $194 million after federal tax at filing. That ranks 7 of 46 lotteries. Every state, side by side.
Where do I claim a big prize in Texas?: At Texas Lottery, which must pay a prize on a ticket it sold; a ticket bought in Texas is claimed there whatever state you live in. texaslottery.com lists its claim centres and deadlines.

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