A Powerball jackpot bought in Texas faces federal tax only — Texas takes nothing at the state level. On today's $674,000,000 jackpot that leaves about $178,899,944 from the $283,888,800 cash option.
Texas has no personal income tax, so a Texas-bought Powerball jackpot faces federal tax only. It is the largest no-income-tax state in the country and the reason Texas winners keep the most among big-state players.
Calculate your take-home
Texas Powerball payout after tax
| Line | Lump sum | Annuity (30 payments) |
|---|---|---|
| Advertised jackpot | $674,000,000 | $674,000,000 |
| Amount paid out before tax | $283,888,800 | $674,000,000 |
| Federal tax (37% bracket) | −$104,988,856 | −$247,880,007 |
| Texas tax (none) | $0 | $0 |
| You keep | $178,899,944 | $426,119,992 |
| Share of the advertised jackpot | 26.5% | 63.2% |
Built from today's live cash value ($283,900,000). Single filer, standard deduction, no other income.
How Texas taxes lottery winnings
Texas levies no personal income tax at all, so there is no state layer to apply to a jackpot. The federal 37% rate still applies to the cash value, and the 24% withholding rule still applies at payout.
- No state withholding and no state income tax return for lottery prizes.
- Texas does not allow lottery winners to remain anonymous; the Texas Lottery publishes the winner’s name and city.
- Texas has no state income tax but relatively high property and sales taxes.
Three prizes, worked out for Texas
| Prize | Cash value | Federal | Texas | You keep |
|---|---|---|---|---|
| $1M | $421,200 | −$110,554 | $0 | $310,646 |
| $10M | $4,212,000 | −$1,508,440 | $0 | $2,703,560 |
| Current jackpot ($674M) | $283,888,800 | −$104,988,856 | $0 | $178,899,944 |
Smaller prizes are worth checking against your own bracket: below roughly $640,600 of taxable income the federal rate is 35% or less, so the flat 37% used here overstates the bill on smaller wins.
If you live in Texas but buy elsewhere
Lottery income is generally taxed by the state where the ticket was purchased, and again by your state of residence, with a credit for tax paid to the first state. That credit is usually capped at the home state's own rate, so a higher-tax home state still collects the difference.
Because Texas takes nothing on a home-state ticket, buying elsewhere only adds another state's tax — there is nothing for Texas to credit back. A resident who buys in Oklahoma pays that state's withholding at claim and settles the difference there at filing, with no offset at home.
Residency is decided by facts — where you spend the year, where you vote, where your home is — not by the address you write on the claim form. Moving after the win does not retroactively change the state that taxes the prize.
Compare Texas with its neighbours
| State | Rate on a jackpot | Take-home (lump sum) | Difference |
|---|---|---|---|
| Texas | 0% | $178,899,944 | — |
| Oklahoma | 4.5% | $166,124,948 | −$12,774,996 |
| New Mexico | 5.9% | $162,150,505 | −$16,749,439 |
| Louisiana | 3% | $170,383,280 | −$8,516,664 |
All 46 jurisdictions are listed in the state tax index and the full rate table.
Frequently asked
Does Texas tax Powerball winnings?
No. Texas has no personal income tax, so a ticket bought here faces federal tax only.
How much would I keep from the current jackpot in Texas?
About $178,899,944 on the cash option ($283,888,800), or about $426,119,992 if you take the 30-payment annuity and stay in Texas for all of it. Both figures are before any local tax, professional fees or other income.
Do I pay Texas tax if I buy the ticket in another state?
It depends on residency. Texas taxes its residents on income wherever it arises, and the state where you bought the ticket may withhold too. You would normally claim a credit in Texas for tax paid to the other state. The state of purchase is not automatically the only one that taxes you.
Can I claim anonymously in Texas?
Anonymity rules are set by the state lottery, not the tax code, and they change. Some states let a trust or LLC claim in place of the individual; others publish the winner's name regardless. Check the Texas lottery claim rules before you sign the back of the ticket.