Daily fantasy sports winnings tax in South Carolina
South Carolina taxes daily fantasy winnings as ordinary income at graduated rates from 1.99% to 5.21%.
Updated · 2026 tax rules · How we calculate
You keep
$4,140
Cash at payout
$4,740
Total tax
$861
Due when you file
$600
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $261
- South Carolina withholding at payout
- $261
- Still to pay when you file
- $600
- You keep
- $4,140
Daily fantasy sites report net winnings of $2,000 or more for the year on a 1099-MISC.
Daily fantasy sports winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file. If you don't give the payer your Social Security number, 24% backup withholding applies.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 12% bracket.
South Carolina taxes gambling winnings as ordinary income.
South Carolina requires the payer to hold back 5.21% for state tax.
Tax owed ($861) minus what was withheld ($261). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $861 in federal and state tax: an effective rate of 17.2%.
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.
The rules
- South Carolina tax
- South Carolina taxes daily fantasy winnings as ordinary income at graduated rates from 1.99% to 5.21%.[1]Unverified
- Federal tax form
- Daily fantasy sites generally report net winnings of $2,000 or more for the year on Form 1099-MISC, not a W-2G. The 1099-MISC threshold was $600 before 2026.[2]Unverified
- Federal withholding
- Fantasy sites don't withhold federal tax from winnings in practice.[2]Unverified
- South Carolina withholding
- South Carolina withholds 5.21% on daily fantasy winnings of $500 or more.[3]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.[4]Unverified
- Visitors
- South Carolina taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in South Carolina.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $78 | $180 | $78 | $1,242 |
| $2,000 | Yes | $104 | $240 | $104 | $1,656 |
| $5,000 | Yes | $261 | $600 | $261 | $4,140 |
| $10,000 | Yes | $521 | $1,550 | $521 | $7,929 |
| $100,000 | Yes | $5,210 | $22,114 | $5,210 | $72,676 |
Questions
- How much is South Carolina tax on daily fantasy winnings?
- South Carolina taxes daily fantasy winnings as ordinary income at graduated rates from 1.99% to 5.21%.[1]Unverified
- Does South Carolina withhold tax from daily fantasy winnings?
- South Carolina withholds 5.21% on daily fantasy winnings of $500 or more.[3]Unverified
- Do visitors pay South Carolina tax on daily fantasy winnings?
- South Carolina taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
More for South Carolina
All of South Carolina's gambling tax rules · Daily fantasy sports in every state
Sources
- [1] SCDOR, Information about H.4216 · checked September 22, 2026
- [2] IRS, Instructions for Forms 1099-MISC and 1099-NEC (2026) · checked September 22, 2026
- [3] S.C. Code 12-8-530, Withholding on cash prizes or winnings · checked September 22, 2026
- [4] S.C. H.4216 / Act No. 110 of 2026 · checked September 22, 2026
- [5] S.C. Code 59-150-230, Lottery prizes · checked September 22, 2026