PBPowerballTax

0.00% state lottery tax

South Dakota Powerball Tax Calculator

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South Dakota is one of nine U.S. states that do not tax Powerball winnings at the state level. A winner in South Dakota pays only the federal taxes — 24% withheld at the source plus an estimated top-bracket adjustment to ~37% — and keeps every dollar of what would otherwise be state tax.

Note: No state income tax

South Dakota after-tax take-home by jackpot tier

24% federal withholding + top-bracket adjustment + state tax. Cash lump sum estimated at 60% of advertised jackpot.

AdvertisedCash take-homeCash effectiveAnnuity take-home
$100M$37.9M36.86%$63.1M
$300M$113.5M36.95%$189.1M
$500M$189.1M36.97%$315.1M
$700M$264.7M36.98%$441.1M
$1B$378.1M36.99%$630.1M
$1.5B$567.1M36.99%$945.1M
$2B$756.1M36.99%$1.3B

South Dakota vs neighboring states ($1B cash)

StateRateCash take-home
South Dakota (SD)0%$378.1M
North Dakota (ND)2.5%$363.1M
Nebraska (NE)5.2%$346.9M
Wyoming (WY)0%$378.1M

Frequently asked questions

Does South Dakota tax Powerball winnings?

South Dakota taxes Powerball winnings at 0.00%. Note: No state income tax.

How much does a $1 billion Powerball winner take home in South Dakota?

On a $1 billion advertised jackpot taken as cash (gross $600,000,000), a South Dakota winner keeps approximately $378,083,278 after taxes — an effective rate of about 36.99%.

Can I avoid South Dakota lottery tax by moving states before claiming?

No. State lottery tax is determined by the state where the ticket was sold, not the winner's residence. A ticket bought in South Dakota is taxed at South Dakota's 0.00% rate; the winner's home state may credit or assess additional tax at filing.

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