Texas Lottery
Texas Lottery Tax Calculator
Texas forbids a personal income tax in its constitution, so a Texas Lottery prize is taxed only by the IRS — the largest real-world question is cash or 30 graduated payments.
Verified · tax year 2026
Texas prize — results
Lump sum · take-home
63% kept of $192,400,000
Annuity · 30 payments
Year 1 $4,478,282 → year 30 $18,277,412
| Cash received | $192,400,000 |
|---|---|
| Federal income tax | −$71,138,000 |
| Tax to Texas | $0 |
| Texas tax | $0 |
| Local income tax | $0 |
| You keep | $121,262,000 |
| Federal withholding (24%) | −$46,176,000 |
|---|---|
| State withholding | $0 |
| Check you receive | $146,224,000 |
| Still owed when you file | $24,962,000 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
The jackpot the Texas Lottery posted on October 5, 2026
On October 5, 2026 the Texas Lottery listed the next Powerball jackpot at an estimated $467 million annuitized, with a $192.4 million cash value. If a Texan with no other income won it, the cash option would carry $71,138,000 of federal tax and leave $121,262,000. The annuity — 30 annual graduated installments, each larger than the last — would pay $4,478,282 after tax in year one, rising to $18,277,412 in year thirty, $295,709,993 in all.
The Lottery withholds 24% at claim ($46,176,000 on the cash), which leaves about $24,962,000 owed with the return.
Why there is no Texas line on the return
Article 8, § 24-a of the Texas Constitution, approved by voters on November 5, 2019, provides that the legislature may not impose a tax on the net incomes of individuals. Section 24-b adds a ban on taxing individuals’ capital gains. Oklahomans, Louisianans, Arkansans and New Mexicans who buy in Texas pay nothing to Texas but owe their own state’s tax at home, with nothing withheld toward it.
Texas at a glance
| State income tax on winnings | None |
|---|---|
| Lottery | Texas Lottery |
| State withholding at claim | None |
What Texas winners should know
- Since 2019 the Texas Constitution (Art. 8 § 24-a) forbids a tax on individuals’ net incomes, so Texas prizes owe federal tax only.
- Texas jackpot annuities are paid in 30 graduated installments, each larger than the last.
Texas sources
- Texas Constitution Art. 8 § 24-a — Texas Legislature †
- Powerball — game page (Jackpot Option notes) — Texas Lottery Commission
Agency: Texas Comptroller of Public Accounts. † read through a browser session (why). How the math works.
Neighboring states
Arkansas · Louisiana · New Mexico · Oklahoma