SOUTH CAROLINA LOTTERY TAX · TAX YEAR 2026
South Carolina lottery tax calculator
South Carolina taxes lottery winnings as income, at rates from 1.99% to 5.21%. On a $1,000,000 prize with $75,000 of wages, a single filer owes $52,384 of South Carolina tax and $340,080 of federal income tax, $392,465 in all, and keeps $607,535.
Tax on your prize
- Total tax on the prize
- $392,464.72
- Federal income tax
- $340,080.25
- South Carolina tax
- $52,384.47
- After-tax prize
- $607,535.28
- Effective rate
- 39.25%
- Federal withholding at 24%
- $240,000.00
- Federal tax still owed
- $100,080.25
South Carolina's lottery withholds state tax at its published rate.
South Carolina tax by size of prize
What a single filer with $75,000 of wages owes on a prize.
| Prize | Federal tax | State tax |
|---|---|---|
| $10,000 | $2,200 | $663 |
| $100,000 | $23,064 | $5,494 |
| $1 million | $340,080 | $52,384 |
| $10 million | $3,670,080 | $521,284 |
South Carolina lottery tax questions
Does South Carolina tax lottery winnings?
Yes. South Carolina taxes lottery winnings as income, at rates from 1.99% to 5.21%.
How much tax is due on a $1,000,000 lottery prize in South Carolina?
A single filer with $75,000 of wages owes $340,080 of federal income tax and $52,384 of South Carolina tax on a $1,000,000 prize, $392,465 in all, and keeps $607,535. On a $100,000 prize, South Carolina tax is $5,494 and federal tax $23,064.
How much is withheld from a South Carolina lottery prize?
South Carolina withholds state tax at its top income tax rate from a prize over $500, and federal withholding is 24% of a prize over $5,000. On a $1,000,000 prize, federal withholding of $240,000 against $340,080 of federal tax leaves $100,080 of federal tax to pay at tax time.
What the calculator leaves out
Federal tax stacks the prize on wages after the 2026 standard deduction and taxes it at the ordinary brackets. Withholding treats the whole prize as winnings, though the IRS tests winnings minus the wager. The calculator takes the cash received this year: a lump sum is taxed in full the year it is paid, and annuity payments are taxed each year as they are received. Gambling losses are left out; only filers who itemize can deduct them, and from 2026 only up to 90% of losses. Tax another state may charge on a ticket bought there is left out.
Sources
- IRS Topic 419, Gambling income and losses
- IRS Instructions for Forms W-2G and 5754
- IRS Publication 505 (2026), Tax Withholding and Estimated Tax
- IRS Revenue Procedure 2025-32: 2026 tax brackets
- South Carolina Code 12-8-530
- South Carolina Education Lottery: FAQ
- SCDOR Tax Legislative Update for 2026: Act 110 rates and SCIAD