TEXAS LOTTERY TAX · TAX YEAR 2026
Texas lottery tax calculator
Texas has no personal income tax, so it does not tax lottery winnings. On a $1,000,000 prize with $75,000 of wages, a single filer owes only $340,080 of federal income tax and keeps $659,920.
Tax on your prize
- Total tax on the prize
- $340,080.25
- Federal income tax
- $340,080.25
- Texas tax
- $0.00
- After-tax prize
- $659,919.75
- Effective rate
- 34.01%
- Federal withholding at 24%
- $240,000.00
- Still owed at tax time
- $100,080.25
Texas tax by size of prize
What a single filer with $75,000 of wages owes on a prize.
| Prize | Federal tax | State tax |
|---|---|---|
| $10,000 | $2,200 | $0 |
| $100,000 | $23,064 | $0 |
| $1 million | $340,080 | $0 |
| $10 million | $3,670,080 | $0 |
Texas lottery tax questions
Does Texas tax lottery winnings?
No. Texas has no personal income tax, so it does not tax lottery winnings.
How much tax is due on a $1,000,000 lottery prize in Texas?
Only federal tax. A single filer with $75,000 of wages owes $340,080 of federal income tax on a $1,000,000 prize and keeps $659,920. The prize reaches the 37% federal bracket.
How much is withheld from a Texas lottery prize?
Texas has no income tax, so only federal tax is withheld: 24% of a prize over $5,000. On a $1,000,000 prize, $240,000 is withheld against $340,080 of tax, leaving $100,080 to pay at tax time.
What the calculator leaves out
Federal tax stacks the prize on wages after the 2026 standard deduction and taxes it at the ordinary brackets. Withholding treats the whole prize as winnings, though the IRS tests winnings minus the wager. The calculator takes the cash received this year: a lump sum is taxed in full the year it is paid, and annuity payments are taxed each year as they are received. Gambling losses are left out; only filers who itemize can deduct them, and from 2026 only up to 90% of losses. Tax another state may charge on a ticket bought there is left out.