Texas Lottery Tax Calculator - 0% State Tax

The Texas state income tax rate on lottery winnings in 2026 is 0%. Calculate your exact take-home amount from any Texas lottery game after federal and state taxes.

✅ Texas Tax Advantage: 0% State Income Tax!

You only owe federal taxes on your lottery winnings. No state taxes.

Winning Amount

Advertised Jackpot

Payout Type

Cash Value Factor (%)

60%

Your Take-Home (After All Taxes)

$189,000,000

Effective Tax Rate: 37.0% (Federal 37% + State 0%)

Lump Sum Amount

$300,000,000

(60% of advertised)

Fed Withholding

$72,000,000

24% immediate

Additional Federal Tax

$39,000,000

Tax gap (37% - 24%)

Texas State Tax

0% estimated state tax rate

Calculator inputs stay on your device (local processing).

Find your state

Lottery tax rates vary by state. Select another state below to see its lottery tax calculator.

Showing 24 states. Use the search above to find more.

Disclaimer: All calculators on this website are provided for informational and illustrative purposes only. The results do not constitute professional advice (including legal, tax, financial, medical, or other advice). Despite careful programming, we assume no liability for the accuracy, completeness, or timeliness of the results. For matters requiring professional advice, we recommend consulting an appropriate specialist (e.g., a tax advisor, lawyer, accountant, or physician).

How Texas Lottery Taxes Work

This calculator estimates your take-home by applying 0% Texas state income tax and an estimate for federal taxes. Note that federal withholding is commonly 24%, but your actual federal tax can be higher or lower depending on your full tax situation.

Texas Tax Calculation

Lump Sum = Advertised × 60%. Federal Tax = Lump Sum × 37%. State Tax = Lump Sum × 0%. Take-Home = Lump Sum - (Federal + State Tax).

Key Terms

Lump Sum

60% of advertised jackpot (cash value estimate)

Federal Withholding

24% taken by lottery immediately

Tax Gap

Difference between 24% withheld and 37% owed federally

State Tax

Texas state income tax: 0%

Texas State Income Tax Rate on Lottery Winnings 2026 Calculator

The Texas state income tax rate on lottery winnings 2026 is 0%. This calculator shows you your exact after-tax take-home from Powerball, Mega Millions, and other Texas lottery games, including both federal and state taxes.

Texas State Tax on Lottery Winnings

Texas has no state income tax on lottery winnings, so the Texas state portion is 0%.

Federal Tax: Withholding vs. Actual Tax

Lottery prizes are subject to federal tax. Withholding is often 24%, but the actual federal tax depends on your total taxable income and can be up to 37% at the top bracket.

Lump Sum vs. Annuity

Texas state income tax remains 0% for both payout types. However, lump sum vs. annuity changes the payout amount and can affect federal taxes.

Texas Lottery Tax FAQ

Q:Does Texas tax lottery winnings?

No. Texas has no state income tax on lottery winnings (0% state tax).

Q:Do I still pay federal tax on lottery winnings in Texas?

Yes. Federal tax applies. Withholding is commonly 24%, but your actual federal tax depends on your full tax situation and can be up to 37% at the top bracket.

Q:Is Texas lottery really “tax-free”?

It’s tax-free at the state level (0% Texas income tax), but federal taxes still apply to lottery winnings.