Does Texas tax lottery winnings?
No. Texas has no personal income tax, so it takes nothing from a lottery prize and nothing is withheld for the state; only federal tax applies. Since 2019 the Texas Constitution has barred a tax on individuals' net income, so a state tax on lottery winnings would first need a constitutional amendment approved by voters (Tex. Const. art. 8, § 24-a).
Source: Tax Foundation, 2026 state income tax rates, checked October 1, 2026.
Texas Powerball and Mega Millions payout after taxes
With nothing owed to the state, a single winner in Texas keeps about $121,262,000 from the $467 Million Powerball jackpot's $192.4 Million cash option, and about $87,998,000 from the $345 Million Mega Millions jackpot's $139.6 Million cash option, or $218,849,993 over 30 annual payments.
How much is $1 million after taxes in Texas?
About $680,000, the same as anywhere without a state lottery tax: $320,000 of federal tax for a single filer with no other income, of which $240,000 is withheld at the claim.
Claiming in Texas: you choose cash or annuity when you buy the ticket
- A Texas draw-game prize must be claimed no later than 180 days after the draw date (Texas Lottery).
- Texas is different from most states: you choose the Cash Value Option or 30 annual payments on the playslip when you buy the ticket, and the jackpot is paid the way the winning ticket shows (Texas Lottery).
- Every Powerball and Mega Millions jackpot, any prize over $5 million and any prize paid as an annuity must be processed at Texas Lottery headquarters in Austin (Texas Lottery).
- The Texas Lottery deducts delinquent state taxes or other money owed to a state agency, defaulted Texas student loans and delinquent child support from a winner's prize, and pays only the balance (Tex. Gov't Code § 466.407).
Can you stay anonymous in Texas?
Only in some cases. At least $1 million: qualifying individuals and beneficial owners can elect anonymity. The entity name remains public; annuity claimants receive only a 30-day delay (source). The guide to what to do if you win the lottery compares the rules in every state.
Billion-dollar jackpots won in Texas
One of the largest lottery jackpots was sold in Texas. Take-home is for a single Texas resident at 2026 rates.
| Drawing | Jackpot | Lump sum take-home today |
|---|---|---|
| Powerball, September 6, 2025Split 2 ways; take-home is for one ticket | $1.79 Billion | $258,539,000 |
Texas compared with neighboring states
$467 Million Powerball jackpot, lump sum, by state of residence. No neighboring state does better: a Texas resident keeps $11,348,958 more than a winner living in New Mexico.
| State of residence | State & local tax | Lump sum take-home |
|---|---|---|
| Texas | $0 | $121,262,000 |
| Louisiana | $5,772,000 | $115,490,000 |
| Arkansas | $7,503,513 | $113,758,487 |
| Oklahoma | $8,657,785 | $112,604,215 |
| New Mexico | $11,348,958 | $109,913,042 |
Assumes the ticket was bought in the state of residence. Taxes on lottery winnings explains what happens when you buy in another state.
Estimates for a single filer with no other income unless noted. Formulas and sources: methodology. Every state's rates: lottery tax by state.