Tax on Lotto Winnings in the Philippines
PCSO keeps 20% of any prize above ₱10,000 as tax; smaller prizes are paid in full. Basahin sa Tagalog
The rule in one line
Prize of ₱10,000 or less: no tax. Prize above ₱10,000: 20% of the whole prize is withheld.
Worked examples
| Prize | Amount | 20% tax | You receive |
|---|---|---|---|
| Swertres (3D), ₱10 straight play | ₱4,500 | None | ₱4,500 |
| EZ2 (2D), ₱10 straight play | ₱4,000 | None | ₱4,000 |
| A prize of exactly ₱10,000 | ₱10,000 | None | ₱10,000 |
| 6D second prize, ₱10 play | ₱40,000 | ₱8,000 | ₱32,000 |
| 6D minimum first prize, ₱10 play | ₱150,000 | ₱30,000 | ₱120,000 |
| 6/42 Lotto minimum jackpot | ₱10,000,000 | ₱2,000,000 | ₱8,000,000 |
| 6/58 Ultra Lotto minimum jackpot | ₱75,000,000 | ₱15,000,000 | ₱60,000,000 |
| 6/58 Ultra Lotto jackpot, October 13, 2026 | ₱392,060,109.64 | ₱78,412,021.93 | ₱313,648,087.71 |
A jackpot shared by several winners is split first; the tax then applies to each winner's share.
Where the rule comes from
The Tax Reform for Acceleration and Inclusion (TRAIN) Law, Republic Act 10963, took effect on January 1, 2018. It amended Section 24(B)(1) of the National Internal Revenue Code so that PCSO and lotto winnings above ₱10,000 are subject to a 20% final tax. Before TRAIN, PCSO and lotto winnings were exempt. PCSO's own FAQ puts it simply: prizes above ₱10,000 are subject to 20% tax pursuant to the TRAIN Law.
How it is collected
It is a final withholding tax: PCSO deducts it when you claim, and you receive the net amount. You don't pay it separately at a BIR office. Outlets only pay prizes up to ₱10,000, so every taxable prize is paid out by a PCSO branch or the Main Office, which handle the withholding — see how to claim a prize.
The ₱10,000 threshold is a cliff
Because the 20% applies to the whole prize once it passes ₱10,000, a prize just above the threshold can pay less than one just below it: ₱10,000 is paid in full, while ₱10,500 is paid as ₱8,400. For the standard bets this rarely matters — the fixed Swertres and EZ2 prizes and most small lotto prizes are below the threshold — but it does for bigger bets on the digit games, where the prize grows with the amount you play.
Tax on the ticket itself
The ticket price already includes a 20% documentary stamp tax. PCSO states this on its game pages — for example, the ₱10 play amount for 2D, 3D, 4D and 6D is inclusive of the documentary stamp tax — so nothing extra is added at the counter.
Sources: PCSO FAQs and game pages (checked September 27, 2026); Republic Act 10963. This page explains the general rule and is not tax advice.
Frequently asked questions
How much is the tax on lotto winnings in the Philippines?
20% of the prize, for any PCSO prize above ₱10,000. It is a final tax that PCSO withholds before paying you. Prizes of ₱10,000 or less are not taxed.
Is the 20% tax only on the amount above ₱10,000?
No. Once a prize is above ₱10,000, the 20% applies to the whole prize. A ₱40,000 prize is taxed ₱8,000 and paid as ₱32,000.
Are Swertres and EZ2 winnings taxed?
Not at the standard bet. A ₱10 Swertres (3D) play wins ₱4,500 and a ₱10 EZ2 (2D) play wins ₱4,000, both below the ₱10,000 threshold, so they are paid in full.
Were lotto winnings always taxed?
No. PCSO and lotto winnings were tax-exempt until the TRAIN Law (Republic Act 10963) took effect on January 1, 2018 and introduced the 20% tax on prizes above ₱10,000.
What is the documentary stamp tax on lotto tickets?
It is a tax on the bet, not the prize. PCSO states that the ticket price already includes the 20% documentary stamp tax, so you pay nothing extra at the outlet.