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WinningsTax

Lottery winnings tax in South Carolina

South Carolina taxes lottery winnings as ordinary income at graduated rates from 1.99% to 5.21%.

Updated · 2026 tax rules · How we calculate

$
$
$
$
More options
$

You keep

$37,045

Cash at payout

$35,395

Total tax

$12,955

Over-withheld

$1,650

Form W-2G
Yes

$50,000 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
$12,000

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
$10,350

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

State tax
$2,605

South Carolina taxes gambling winnings as ordinary income.

South Carolina withholding at payout
$2,605

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

Over-withheld
$1,650

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
$37,045

$50,000 minus $12,955 in federal and state tax: an effective rate of 25.9%.

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 lottery winnings as ordinary income at graduated rates from 1.99% to 5.21%.[1]Unverified
Federal tax form
Lottery prizes of $2,000 or more that are at least 300 times the ticket price are reported on a W-2G. The threshold was $600 before 2026.[2]
Federal withholding
24% is withheld from lottery prizes of more than $5,000 (minus the ticket price). No 300x test applies to lotteries.[4]
South Carolina withholding
South Carolina withholds 5.21% on lottery winnings of $500 or more.[5]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.[6]Unverified
Visitors
South Carolina taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]
Where to play
South Carolina runs a state lottery.[8]Unverified

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.

WonW-2GWithheldFederal taxState taxYou keep
$1,500No$78$180$78$1,242
$2,000Yes$104$240$104$1,656
$10,000Yes$2,921$1,550$521$7,929
$50,000Yes$14,605$10,350$2,605$37,045
$100,000Yes$29,210$22,114$5,210$72,676

Assumes a $2 ticket price, so the 300x test is met at every amount shown.

Questions

How much is South Carolina tax on lottery winnings?
South Carolina taxes lottery winnings as ordinary income at graduated rates from 1.99% to 5.21%.[1]Unverified
Does South Carolina withhold tax from lottery winnings?
South Carolina withholds 5.21% on lottery winnings of $500 or more.[5]Unverified
Do visitors pay South Carolina tax on lottery winnings?
South Carolina taxes nonresidents on lottery winnings won there, so visitors may need to file a nonresident return.[7]

More for South Carolina

All of South Carolina's gambling tax rules · Lottery in every state

Sources

  1. [1] SCDOR, Information about H.4216 · checked September 22, 2026
  2. [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
  3. [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
  4. [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
  5. [5] S.C. Code 12-8-530, Withholding on cash prizes or winnings · checked September 22, 2026
  6. [6] S.C. H.4216 / Act No. 110 of 2026 · checked September 22, 2026
  7. [7] S.C. Code 59-150-230, Lottery prizes · checked September 22, 2026
  8. [8] S.C. Code Title 16, Chapter 19 (Gambling and Lotteries) · checked September 22, 2026