South Dakota gambling winnings tax calculator
South Dakota has no personal income tax, so it doesn't tax gambling winnings.
Updated · 2026 tax rules · How we calculate
You keep
$8,450
Cash at payout
$7,600
Total tax
$1,550
Over-withheld
$850
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $0
- Over-withheld
- $850
- You keep
- $8,450
$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 Dakota has no personal income 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 $1,550 in federal and state tax: an effective rate of 15.5%.
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 Dakota taxes gambling winnings
- State income tax
- South Dakota has no personal income tax, so it doesn't tax gambling winnings.[1]
- Legal gambling
- Sports betting: legal in person only. State lottery: yes. Casinos: yes. Online casino: not legal.[2]
Also worth knowing
- Sports betting is limited to Deadwood and tribal casinos. Mobile betting works only on casino premises, not statewide.[2]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in South Dakota. South Dakota ranks 1st of 51 (tied with 8 other states) for what you keep from a $10,000 sports bet, and 1st of 51 (tied with 9 other states) for a $1 million lottery prize. See every state ranked.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $2,400 | $1,550 | $0 | $8,450 |
| Casino and slots | $5,000 | $0 | $600 | $0 | $4,400 |
| Table games | $5,000 | $0 | $600 | $0 | $4,400 |
| Poker tournaments | $20,000 | $0 | $3,750 | $0 | $16,250 |
| Lottery | $50,000 | $12,000 | $10,350 | $0 | $39,650 |
| Daily fantasy sports | $5,000 | $0 | $600 | $0 | $4,400 |
| Horse racing | $8,000 | $1,920 | $1,110 | $0 | $6,890 |
Questions
- Does South Dakota tax gambling winnings?
- No. South Dakota has no personal income tax. You still owe federal tax.[1]
Gambling across the border from South Dakota
South Dakota won't tax your winnings, but a neighboring state can tax what you win there as a visitor, and you file a nonresident return to pay it.
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] American Gaming Association, South Dakota Gaming Regulatory Fact Sheet (2025) · checked September 22, 2026
- [3] Iowa DOR: Iowa Tax On Gambling · checked September 22, 2026
- [4] Minnesota Department of Revenue: Minnesota Income Tax Rates and Brackets · checked September 22, 2026
- [5] Minnesota Department of Revenue: Gambling Winnings · checked September 22, 2026
- [6] MCA 15-30-2101 Definitions (Montana source income) · checked September 22, 2026
- [7] ND Tax Commissioner Guideline - Income Taxation of Nonresident Aliens · checked September 22, 2026
- [8] Nebraska DOR Regulations Chapter 22 (REG-22-003.01I) · checked September 22, 2026