Some people are lucky and win a house in a raffle. But if they do, they need to know that they will have to pay taxes on the value of the house they have won. The IRS will consider the winnings from the raffle as income, and you'll have to pay income taxes on the value of the house. Most house raffles by individuals are illegal in most states. While in some states charities can raffle off homes and keep the proceeds for their use in one state, charities can work with homeowners to raffle off their homes. There are strict rules and a house raffle may not be much better than trying to auction the home or selling the home using conventional methods.