Sell Your Texas Lottery Payments for a Lump Sum

How Texas Lottery Payments Work

If you won a Texas Lotto, Powerball, or Mega Millions jackpot and chose the annuity option, you’re receiving installment payments over a multi-year period. Powerball and Mega Millions annuities pay 30 graduated installments increasing by 5% each year. Texas Lotto annuities are paid in 30 annual installments. These payments are managed by the Texas Lottery Commission and backed by investments in U.S. government securities.

While guaranteed income over decades sounds appealing, life changes. Whether you need to pay off debt, invest in a business, purchase real estate, or handle unexpected expenses, selling some or all of your remaining Texas lottery payments can provide the financial flexibility a fixed annuity schedule cannot.

Texas Lottery Assignment Law: Gov. Code § 466.410

Texas lottery prize payments paid in installments may be voluntarily assigned via court order under V.T.C.A., Government Code § 466.410. Several features distinguish Texas from other states:

• Travis County exclusivity: All Texas lottery assignments must be filed in a District Court of Travis County (Austin), regardless of where the winner lives. This single-venue requirement means the court process takes place in Austin even if you reside in Houston, Dallas, San Antonio, or anywhere else in Texas.
• Both parties sign: The assignment must be in writing and executed by both the assignor and assignee (or designated agent). Most states only require the seller’s signature.
• Sworn and notarized affidavit (7 elements): The seller must provide a sworn and notarized affidavit attesting to sound mind, age 18 or older, no child support delinquency, independent legal counsel, understanding of lost payments, a one-page 14-point boldface disclosure statement with payment details, and the 3-business-day cancellation right.
• Notarized spousal consent: The winner must disclose whether they have a spouse. If married, a sworn and notarized spousal consent statement must be submitted. Texas is a community property state, making this requirement especially significant.
• Child support absolute bar: A person who is delinquent in child support payments is flatly ineligible to assign lottery payments. This is an absolute bar, not merely an offset as in most other states.
• Maximum 3 persons per payment: Court orders may not require the Commission to divide a single payment among more than 3 different persons.

Written notice of the petition must be served on the Executive Director at least 20 days before any hearing. After approval, a certified copy must be delivered at least 20 days before the first assigned payment, and the Commission must acknowledge receipt in writing within 20 days.

Tax Implications for Texas Lottery Winners

Texas has no state income tax. Whether you receive your lottery winnings as annual payments or sell them for a lump sum, you owe 0% state tax. This makes Texas one of the most tax-favorable states for lottery winners, alongside Florida and a handful of others.

Federal taxes still apply: the IRS withholds 24% from lottery prizes over $5,000, and the top federal marginal rate is 37%. Because there’s no state layer of taxation, the lump sum vs. annuity calculation in Texas is simpler and generally more favorable to the winner. Estimate your after-tax proceeds with our lottery calculator.

How CSF Buys Texas Lottery Payments

Catalina Structured Funding handles the entire Texas lottery transfer process, including the Travis County filing requirement:

1. Free quote: Call (800) 317-3769 or request a quote online. We evaluate your remaining payment schedule and current market rates to provide a competitive offer.
2. Accept the offer: Review the terms at your own pace. Texas law requires independent legal counsel and provides a 3-business-day cancellation right.
3. Spousal consent (if married): We prepare the required sworn and notarized spousal consent statement. Both you and CSF sign the assignment agreement.
4. Travis County filing: CSF files the petition with the Travis County District Court and handles all hearing logistics, including the 20-day advance notice to the Executive Director. You do not need to travel to Austin, CSF manages the process.
5. Get your lump sum: After court approval and the Commission’s written acknowledgment, funds are transferred directly to you. CSF also offers cash advances upon signing.

Why Texas Lottery Winners Choose CSF

• Transparent pricing: The amount we quote is the amount you receive
• Travis County expertise: We handle the Austin filing so you don’t have to travel
• No state income tax: Texas winners keep more of their lump sum
• Competitive rates for Texas Lotto, Powerball, and Mega Millions annuity payments
• Cash advances available upon signing
• Flexible options: Sell some or all of your remaining payments
• Free, no-obligation quotes: call (800) 317-3769 or request a quote online

For official information about Texas lottery prize payments, visit the Texas Lottery Commission website.