Lottery winnings · Texas
Texas lottery tax calculator
Texas has no state income tax, so there is no state tax on lottery winnings — the federal bill is the whole bill.
Lump sum: enter the cash option, not the advertised jackpot. Annuity: enter one year's payment.
The prize is stacked on top of this. It decides which bracket the winnings land in — and whether the 24% withheld was too much or too little.
What you keep after taxes
20.7% of the prize goes in tax · top federal rate 22.0%
- Prize
- $50,000
- Federal income tax on it
- −$10,350
- Texas income tax on it
- −$0
- You keep
- $39,650
The cheque at claim
- Federal withheld (24.0% — proceeds over $5,000)
- −$12,000
- Texas withheld (no state income tax)
- −$0
- Cheque
- $38,000
Free · No account · Runs in your browser, so the amount you type is never sent anywhere
At the counter
What is withheld in Texas
Federal first, everywhere: on proceeds over $5,000 the payer withholds 24% of the whole amount — not the part over the line — and reports it on Form W-2G. That is a prepayment. The tax is settled on your return.
Nothing is withheld for the state at claim, because there is nothing to withhold.
Worked amounts
Three prizes, cheque and bill
| Prize | Cheque at claim | Federal tax | Texas tax | You keep |
|---|---|---|---|---|
| $10,000 | $7,600 | −$1,550 | −$0 | $8,450 |
| $100,000 | $76,000 | −$22,114 | −$0 | $77,886 |
| $1,000,000 | $760,000 | −$337,180 | −$0 | $662,820 |
Single filer with $60,000 of other income for the year.
Questions
How much tax is taken from lottery winnings in Texas?
Two layers. Federal: the payer withholds 24% on proceeds over $5,000, and the prize is then taxed on your return as ordinary income at the 2026 rates — up to 37%. State: Texas has no state income tax, so there is no state tax on lottery winnings — the federal bill is the whole bill. Nothing is withheld for the state at claim, because there is nothing to withhold.
Does Texas tax lottery winnings?
Texas has no state income tax, so there is no state tax on lottery winnings — the federal bill is the whole bill.
What will the cheque be on a $100,000 prize in Texas?
About $76,000 — the prize less $24,000 federal withholding. The tax actually owed for a single filer earning $60,000 elsewhere is about $22,114, so what you keep is $77,886. Your own figure depends on your other income and filing status.
Is the withholding the same as the tax?
No. Withholding is a prepayment at a flat rate the IRS sets for everyone. The tax is worked out on your return from your total income. If your bracket is above 24% you owe the difference in April; if it is below, the excess comes back as a refund. On a jackpot the gap is large — roughly a third of the federal tax is still owed after the 24% is taken.
Where these figures come from
- IRS Instructions for Forms W-2G and 5754 (Rev. January 2026) — regular gambling withholding, lotteries — read 2026-08-26
- Texas Comptroller — no personal income tax — read 2026-08-20
Federal tax owed uses the 2026 rate schedules and standard deduction from Form 1040-ES. Texas tax uses the same rules as our Texas paycheck calculator. Not modelled: annuity maths, itemised deductions, local income taxes, non-resident rules. Estimates only — not tax advice.
Other states