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WinningsTax

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

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$
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More options
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You keep

$7,929

Cash at payout

$7,079

Total tax

$2,071

Over-withheld

$850

Form W-2G
Yes

$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.

Federal withholding at payout
$2,400

The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.

Federal tax on the winnings
$1,550

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.

State tax
$521

South Carolina taxes gambling winnings as ordinary income.

South Carolina withholding at payout
$521

South Carolina requires the payer to hold back 5.21% for state tax.

Over-withheld
$850

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.

You keep
$7,929

$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
No, starting in 2026. Act 110 replaced federal standard and itemized deductions with the South Carolina Income Adjusted Deduction, so itemized gambling losses no longer carry over.[2]Unverified
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.[3]Unverified
Nonresidents
Yes. Nonresidents who win South Carolina lottery prizes owe South Carolina tax, and withholding covers prizes paid to nonresidents.[4]
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.[5]
Legal gambling
Sports betting: not legal. State lottery: yes. Casinos: no. Online casino: not legal.[6]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.[2]
  • 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.[3]

Examples by game

For a single filer with $60,000 of other income and no gambling losses, living and winning in South Carolina.

GameWonWithheldFederal taxState taxYou 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?
No, starting in 2026. Act 110 replaced federal standard and itemized deductions with the South Carolina Income Adjusted Deduction, so itemized gambling losses no longer carry over.[2]Unverified
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.[3]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.[4]

South Carolina by game

Sources

  1. [1] SCDOR, Information about H.4216 · checked September 22, 2026
  2. [2] S.C. H.4216 / Act No. 110 of 2026 · checked September 22, 2026
  3. [3] S.C. Code 12-8-530, Withholding on cash prizes or winnings · checked September 22, 2026
  4. [4] S.C. Code 59-150-230, Lottery prizes · checked September 22, 2026
  5. [5] SC1040TC (2025), Credit for taxes paid to another state · checked September 22, 2026
  6. [6] S.C. Code Title 16, Chapter 19 (Gambling and Lotteries) · checked September 22, 2026