Maryland State Tax on Lottery Winnings
Free Maryland lottery tax calculator for Powerball and Mega Millions. Maryland taxes lottery winnings at 9.50% (top marginal rate).
Current Powerball $516M jackpot, single filer
$113.79M
Actual take-home: 22.1% of what they advertise
Note: 6.5% state top rate for 2026 plus 2.25% to 3.30% local county income tax; the Lottery withholds 9.5% from residents and 8.75% from non-residents
What You'd Actually Take Home.
Lottery Tax Calculator for Powerball, Mega Millions, and Every State.
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Standard deduction: $16,100. All lottery income is taxed at your individual rate. This is the most common filing status for winners.
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10 states · no lottery taxHighest: Hawaii, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Washington DC
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What to Know Before Claiming a Jackpot in Maryland
Maryland is a heavy tax state for a jackpot winner and the reason is easy to miss. The state top rate rose to 6.5% for 2026, but Maryland residents also pay a county or Baltimore City income tax of 2.25% to 3.30% on the same winnings, so the Lottery withholds 9.5% from residents, against 8.75% from out-of-state winners. What Maryland gives back is privacy. State law gives every Lottery winner the right to remain anonymous. You have 182 days to claim, and any prize over $25,000 is paid at Lottery headquarters in Baltimore.
- State tax rate (2026)
- 6.5% state top rate, plus 2.25% to 3.30% local county income tax. The Lottery withholds 9.5% from residents, 8.75% from non-residents
- Deadline to claim
- 182 days from the drawing date
- Anonymity
- Allowed. Every Maryland Lottery winner has the right to remain anonymous, with no minimum prize
- Where jackpots are claimed
- In person at Maryland Lottery headquarters, 1800 Washington Boulevard, Baltimore, for any prize over $25,000. Allow about 15 business days to process
- What proceeds fund
- The State General Fund, which supports education, public safety, health, and the environment. The Lottery contributes on the order of $780 million a year
Sources: Comptroller of Maryland: 2025 Legislative Session Tax Rate Changes · Maryland Lottery: How to Claim a Prize · Maryland Lottery: FAQs · Maryland Lottery: Where the Money Goes
Maryland Lottery Winnings Tax Overview
The Maryland state tax on lottery winnings is 9.5%, which sits in the upper tier among states that collect a lottery tax. Ranked number 7 out of 41 taxed states, Maryland pulls a meaningful cut from any Powerball or Mega Millions payout before the federal lottery tax applies. The Maryland lottery tax calculator above breaks down every dollar of your potential lump sum prize, from the advertised jackpot to the final after tax number that lands in your account.
How the Maryland Lottery Payout Calculator Works
In Maryland, the lottery payout calculation begins with the lump sum cash option, which equals roughly 45% of the advertised jackpot. The IRS withholds 24% federal lottery tax at the moment of payout, but a Powerball or Mega Millions prize pushes the winner into the 37% top federal bracket, so additional federal tax comes due at filing. On top of that, Maryland taxes lottery winnings at 9.5% of the full lump sum. The lottery payout calculator above runs all of this math for you, using IRS 2026 brackets and the top marginal Maryland lottery tax rate. One Maryland specific detail to factor in: 6.5% state top rate for 2026 plus 2.25% to 3.30% local county income tax; the Lottery withholds 9.5% from residents and 8.75% from non-residents.
How Maryland Compares to Other Lottery Tax States
Maryland's 9.5% lottery tax rate ranks number 7 out of 41 taxed states. States with a higher lottery tax rate than Maryland include Oregon and Minnesota. States with a lower rate include Maine and Massachusetts. For context, 10 states collect no lottery tax at all, which means a Powerball or Mega Millions winner in one of those states keeps an extra 9.5% of their lump sum compared to a winner in Maryland.
Maryland Lottery Tax FAQs
What is the Maryland state tax on lottery winnings?
Maryland taxes lottery winnings at a top marginal rate of 9.5%. This rate applies to the lump sum cash option from any Powerball or Mega Millions prize, and it is paid in addition to the federal lottery tax of up to 37% at the highest bracket. The lottery tax calculator above shows the exact dollar amount for any current jackpot.
Should I take the lump sum or annuity in Maryland?
Most Powerball and Mega Millions winners choose the lump sum cash option. In Maryland, both options face the same 9.5% state lottery tax rate, but the annuity spreads the tax across 30 years while the lump sum delivers the full cash value now. The lottery payout calculator above shows the lump sum after taxes; the annuity choice is a separate financial decision based on personal goals and investment return assumptions.
Does Maryland withhold tax on a lottery payout before payment?
The IRS withholds 24% federal lottery tax on any lottery prize above $5,000 before the winner ever sees the check. Maryland also withholds state tax at or near the 9.5% top rate at the moment of payout. The remaining federal balance, up to the 37% top bracket, then comes due in April when the winner files a federal return.
Can you stay anonymous if you win the lottery in Maryland?
Yes. Maryland is one of the states that lets a lottery winner stay anonymous. Anyone who wins a prize on a Maryland Lottery draw game, FAST PLAY, or scratch-off ticket has the right to keep their name out of the public record, with no minimum prize amount, so a Powerball or Mega Millions jackpot winner can claim privately.