South Carolina gambling winnings tax calculator
South Carolina taxes gambling winnings as ordinary income at graduated rates from 1.99% to 5.21%.
Updated · 2026 tax rules · How we calculate
You keep
$7,929
Cash at payout
$7,079
Total tax
$2,071
Over-withheld
$850
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $521
- South Carolina withholding at payout
- $521
- Over-withheld
- $850
- You keep
- $7,929
$10,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
South Carolina taxes gambling winnings as ordinary income.
South Carolina requires the payer to hold back 5.21% for state tax.
More was withheld than these winnings add to your tax. The difference reduces what you owe on the rest of your return, or comes back as a refund.
$10,000 minus $2,071 in federal and state tax: an effective rate of 20.7%.
An estimate for 2026, not tax advice. It treats this win as your only gambling income for the year and leaves out local income taxes. Nothing you enter leaves your browser.
How South Carolina taxes gambling winnings
- State income tax
- South Carolina taxes gambling winnings as ordinary income at graduated rates from 1.99% to 5.21%.[1]Unverified
- Gambling losses
- Not from 2026. Act 110 ended South Carolina's use of federal standard and itemized deductions and replaced them with the South Carolina Income Adjusted Deduction, so itemized gambling losses no longer reduce South Carolina tax.[2] How the federal 90% loss rule works
- Withholding
- Anyone paying prizes or winnings of $500 or more must withhold South Carolina tax at the top individual rate, 5.21% for 2026. This applies to residents and nonresidents.[4]Unverified
- Nonresidents
- Yes. Nonresidents who win South Carolina lottery prizes owe South Carolina tax, and withholding covers prizes paid to nonresidents.[5]
- Tax paid to other states
- Yes. Residents can claim a credit for income tax paid to another state on income both states tax, up to the South Carolina tax on that income.[6]
- Legal gambling
- Sports betting: not legal. State lottery: yes. Casinos: no. Online casino: not legal.[7]Unverified
Also worth knowing
- Act 110 of 2026 (H.4216) replaced federal standard and itemized deductions with a South Carolina Income Adjusted Deduction starting in 2026, ending state itemized deductions for gambling losses.[3]
- Noncash prizes of $500 or more can be grossed up for withholding under the statute's formula, and prizes to spectator-sporting-event participants are exempt from withholding.[4]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in South Carolina. South Carolina ranks 37th of 51 for what you keep from a $10,000 sports bet, and 33rd of 51 for a $1 million lottery prize. See every state ranked.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $2,921 | $1,550 | $521 | $7,929 |
| Casino and slots | $5,000 | $261 | $600 | $261 | $4,140 |
| Table games | $5,000 | $261 | $600 | $261 | $4,140 |
| Poker tournaments | $20,000 | $1,042 | $3,750 | $1,042 | $15,208 |
| Lottery | $50,000 | $14,605 | $10,350 | $2,605 | $37,045 |
| Daily fantasy sports | $5,000 | $261 | $600 | $261 | $4,140 |
| Horse racing | $8,000 | $2,337 | $1,110 | $417 | $6,473 |
Questions
- Does South Carolina tax gambling winnings?
- Yes, at graduated rates from 1.99% to 5.21%.[1]Unverified
- Can you deduct gambling losses in South Carolina?
- Not from 2026. Act 110 ended South Carolina's use of federal standard and itemized deductions and replaced them with the South Carolina Income Adjusted Deduction, so itemized gambling losses no longer reduce South Carolina tax.[2]
- Does South Carolina withhold tax from gambling winnings?
- Anyone paying prizes or winnings of $500 or more must withhold South Carolina tax at the top individual rate, 5.21% for 2026. This applies to residents and nonresidents.[4]Unverified
- Do nonresidents pay South Carolina tax on gambling winnings?
- Yes. Nonresidents who win South Carolina lottery prizes owe South Carolina tax, and withholding covers prizes paid to nonresidents.[5]
Gambling across the border from South Carolina
Win in a neighboring state and both states can tax it: the state you won in as a visitor, and South Carolina as your home state, usually with a credit for the tax you paid there.
Sources
- [1] SCDOR, Information about H.4216 · checked September 22, 2026
- [2] SCDOR Information Letter #26-20: Individual Income Tax Reform (August 31, 2026) · checked October 2, 2026
- [3] H.4216, Act No. 110 of 2026 (signed March 30, 2026) · checked October 2, 2026
- [4] S.C. Code 12-8-530, Withholding on cash prizes or winnings · checked September 22, 2026
- [5] S.C. Code 59-150-230, Lottery prizes · checked September 22, 2026
- [6] SC1040TC (2025), Credit for taxes paid to another state · checked September 22, 2026
- [7] S.C. Code Title 16, Chapter 19 (Gambling and Lotteries) · checked September 22, 2026
- [8] Office of the Governor of Georgia, Gov. Kemp signs legislation lowering taxes (May 11, 2026) · checked September 22, 2026
- [9] Georgia DOR: Filing Residents, Nonresidents, and Part-Year Residents FAQ · checked September 22, 2026
- [10] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [11] N.C.G.S. 105-153.4 · checked September 22, 2026