South Dakota tax on lottery and gambling winnings
South Dakota has no income tax on gambling or lottery winnings, so only federal tax applies: a single filer with no other income keeps about $680,000 of a $1,000,000 prize after about $320,000 of federal tax.
What to know
South Dakota taxes its residents on winnings from anywhere. If you won in another state as a non-resident, that state may tax the prize too, and your home state usually gives a credit for it. The federal tax is the same everywhere: see the 2026 federal rules, or compare every state.
Questions
Does South Dakota tax lottery winnings?
No. South Dakota has no income tax on winnings. Federal tax still applies, and a state where you won as a non-resident may tax the prize.
How much tax is due on a $1 million prize in South Dakota?
For a single filer with no other income, about $0 in state tax and $320,000 in federal tax, leaving about $680,000. The federal withholding of 24% covers only part of it.
State brackets from the Tax Foundation, federal from the IRS, 2026. Estimates, not tax advice. Methodology.
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