South Dakota Lottery
South Dakota Lottery Tax Calculator
South Dakota collects no income tax from anyone, but a South Dakotan who buys a ticket across the border can still owe another state’s tax on the prize.
Verified · tax year 2026
South Dakota prize — results
Lump sum · take-home
63.1% kept of $36,000,000
Annuity · 30 payments
Year 1 $808,592 → year 30 $3,172,469
| Cash received | $36,000,000 |
|---|---|
| Federal income tax | −$13,270,000 |
| Tax to South Dakota | $0 |
| South Dakota tax | $0 |
| Local income tax | $0 |
| You keep | $22,730,000 |
| Federal withholding (24%) | −$8,640,000 |
|---|---|
| State withholding | $0 |
| Check you receive | $27,360,000 |
| Still owed when you file | $4,630,000 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
An $80 million Mega Millions win at home
The Department of Revenue counts South Dakota among the seven states that impose no income tax. For an $80 million Mega Millions jackpot claimed as $36 million cash, federal tax is $13,270,000 and nothing goes to Pierre, leaving $22,730,000. Choosing the annuity instead gives a first after-tax payment of $808,592 and $51,899,993 in total.
Buying in Minnesota or Iowa instead
The answer changes if the ticket came from a neighboring lottery. Minnesota withholds 7.25% from every prize over $5,000 and taxes income at up to 9.85%; Iowa withholds and taxes at 3.8% and says nonresidents are not exempt. On a $1,000,000 prize the calculator shows about $92,805 of Minnesota tax or $38,000 of Iowa tax for a South Dakota resident — with no South Dakota tax to credit it against, that cost is final.
South Dakota at a glance
| State income tax on winnings | None |
|---|---|
| Lottery | South Dakota Lottery |
| State withholding at claim | None |
What South Dakota winners should know
- South Dakota imposes no state income tax, so a South Dakota winner pays federal tax only.
South Dakota sources
- Individuals — Taxes — South Dakota Department of Revenue †
Agency: South Dakota Department of Revenue. † read through a browser session (why). How the math works.
Neighboring states
Iowa · Minnesota · Montana · Nebraska · North Dakota · Wyoming