Lotto Tax in the Philippines — How Much Is Deducted From PCSO Winnings
PCSO prizes above ₱10,000 have a 20% final withholding tax deducted before the money is handed over. Prizes of ₱10,000 and below have nothing deducted. This page explains the rule and shows the arithmetic.
The rule
Set by Republic Act 10963 (the TRAIN Law), in force since 1 January 2018. Before that, all PCSO prizes were exempt. "Final withholding" means PCSO deducts it before paying you — there is nothing further to settle afterwards.
It applies to the whole prize, not just the part above ₱10,000
This is the most common misunderstanding. The ₱10,000 figure is a threshold, not a tax-free allowance. A ₱10,000 prize is paid in full. A ₱10,001 prize has 20% taken off the entire ₱10,001 — about ₱2,000 — leaving roughly ₱8,001. Crossing the line by one peso costs more than the peso.
Calculator
Worked examples
Real prize amounts from PCSO games, plus two either side of the threshold to show where the line falls. Jackpot figures are illustrative.
| Prize | Amount | Tax | You receive |
|---|---|---|---|
| EZ2 (2D) straight | ₱4,000 | None | ₱4,000 |
| Swertres (3D) straight | ₱4,500 | None | ₱4,500 |
| Exactly at the threshold | ₱10,000 | None | ₱10,000 |
| One peso over the threshold | ₱10,001 | −₱2,000 | ₱8,001 |
| 6D match-5 tier | ₱40,000 | −₱8,000 | ₱32,000 |
| Small jackpot (illustrative) | ₱6,000,000 | −₱1,200,000 | ₱4,800,000 |
| Large jackpot (illustrative) | ₱50,000,000 | −₱10,000,000 | ₱40,000,000 |
Common questions
How much tax is deducted from lotto winnings in the Philippines?
20% of the prize, for any PCSO prize above ₱10,000. Prizes of ₱10,000 and below have no tax deducted.
Are small lotto prizes taxed?
No. A prize of ₱10,000 or less is exempt, which covers the standard Swertres and EZ2 straight prizes.
Who deducts the tax?
PCSO withholds it at source. The amount handed over at the claim counter is already net of tax.
Does a lotto prize go on an annual income tax return?
It is a final tax, which means it is settled at the point of payment and is not included again in the annual return.