Maryland Lottery Tax Calculator - 9.8% State Tax

The Maryland state income tax rate on lottery winnings in 2026 is 9.8%. Calculate your exact take-home amount from any Maryland lottery game after federal and state taxes.

Maryland State Income Tax: 9.8%

In addition to federal taxes, Maryland residents owe 9.8% state tax on lottery winnings.

Winning Amount

Advertised Jackpot

Payout Type

Cash Value Factor (%)

60%

Your Take-Home (After All Taxes)

$159,600,000

Effective Tax Rate: 46.8% (Federal 37% + State 9.8%)

Lump Sum Amount

$300,000,000

(60% of advertised)

Fed Withholding

$72,000,000

24% immediate

Additional Federal Tax

$39,000,000

Tax gap (37% - 24%)

Maryland State Tax

$29,400,000

9.8% estimated state tax rate

Withheld at payout: $28,500,000 (9.5%)

Estimated additional state due: $900,000

Calculator inputs stay on your device (local processing).

Find your state

Lottery tax rates vary by state. Select another state below to see its lottery tax calculator.

Showing 24 states. Use the search above to find more.

Disclaimer: All calculators on this website are provided for informational and illustrative purposes only. The results do not constitute professional advice (including legal, tax, financial, medical, or other advice). Despite careful programming, we assume no liability for the accuracy, completeness, or timeliness of the results. For matters requiring professional advice, we recommend consulting an appropriate specialist (e.g., a tax advisor, lawyer, accountant, or physician).

How Maryland Lottery Taxes Work

This calculator uses a conservative top-bracket federal estimate (37%) and shows the typical federal withholding (24%) separately. Maryland income tax includes a state component (with a top state rate of 6.50%) and a local county/Baltimore City component (up to 3.30% for tax years beginning after 12/31/2025). For large wins, this calculator uses a conservative top combined estimate. Maryland Lottery withholding on prizes over $5,000 is 9.5% for Maryland residents and 8.75% for nonresidents.

Maryland Tax Calculation

Lump Sum = Advertised × 60%. Federal Tax = Lump Sum × 37%. State Tax = Lump Sum × 9.8%. Take-Home = Lump Sum - (Federal + State Tax).

Key Terms

Lump Sum

60% of advertised jackpot (cash value estimate)

Federal Withholding

24% taken by lottery immediately

Tax Gap

Difference between 24% withheld and 37% owed federally

State Tax

Maryland state income tax: 9.8%

Maryland State Income Tax Rate on Lottery Winnings 2026 Calculator

The Maryland state income tax rate on lottery winnings 2026 is 9.8%. This calculator shows you your exact after-tax take-home from Powerball, Mega Millions, and other Maryland lottery games, including both federal and state taxes.

Maryland Tax on Lottery Winnings (State + Local)

Maryland income tax generally includes both a state rate (progressive) and a local rate (county/Baltimore City). For large wins, the combined top rate can be close to ~10% depending on your local rate.

Maryland Lottery Withholding (9.5% / 8.75%)

For prizes larger than $5,000, Maryland Lottery withholds 9.5% for Maryland residents and 8.75% for nonresidents (in addition to federal withholding). Withholding is a prepayment/credit; your final Maryland tax can differ based on your full-year return.

Federal Tax: Withholding vs. Final

Federal withholding is commonly 24% at payout for larger prizes, but the final federal tax depends on your total taxable income and can be higher (up to 37%).

Maryland Lottery Tax FAQ

Q:What is Maryland lottery withholding on prizes over $5,000?

Maryland Lottery withholds 9.5% for Maryland residents and 8.75% for nonresidents on prizes over $5,000 (plus federal withholding).

Q:Why does Maryland look like a “~10%” state?

Because Maryland income tax includes both a state component and a local (county/Baltimore City) component. The combined top rate can be close to 10% depending on your local rate.

Q:Why is the calculator’s total tax higher than 24%?

Because 24% is typically federal withholding at payout, not the final federal tax. The calculator estimates final federal tax (up to 37%) plus an estimated Maryland tax, and shows withholding separately.