Maine lottery taxes: the 2026 millionaire surcharge
Rate checked on November 5, 2026 against the sources listed at the end of this page.
9.15% applies only above the threshold
36 MRSA section 5111 sets a 7.15% top regular rate. Section 5111(7) adds 2% from tax year 2026 only to Maine taxable income above $1,000,000 for single filers or $1,500,000 for joint filers and heads of household. Married filing separately uses half the joint threshold.
Like the Massachusetts surtax, this is a marginal surcharge: income below the threshold does not bear the extra 2%. Our calculator conservatively applies 9.15% to the entire prize, so it overstates state tax, particularly for prizes below or near the threshold. It does not calculate individual brackets, deductions or filing status.
Take-home pay on a lump-sum prize in Maine
The table applies the top federal rate of 37% plus 7.15% + 2% surcharge above threshold. Amounts are the cash (lump-sum) value you receive, not the advertised annuity jackpot.
| Cash prize | Federal (37%) | State | You keep |
|---|---|---|---|
| $1.00M | −$370,000 | −$91,500 | $538,500 |
| $10.00M | −$3.70M | −$915,000 | $5.38M |
| $100.00M | −$37.00M | −$9.15M | $53.85M |
| $500.00M | −$185.00M | −$45.75M | $269.25M |
| $1.00B | −$370.00M | −$91.50M | $538.50M |
Federal figure is the total owed at the top bracket. At claim time only 24% is withheld; the rest is due when you file. Smaller prizes can fall into lower brackets, so the real federal bill may be less.
The Lottery still withholds 7.15%
The Maine Lottery prize page lists 24% federal and 7.15% state withholding on prizes over $5,000. State withholding therefore does not cover the extra 2% surcharge on income above the threshold. Discuss estimated payments with a tax professional rather than treating the claim check as the final after-tax amount.
Compare neighboring states
New Hampshire has no state income tax, but a New Hampshire resident buying a Maine ticket should check Maine-source filing obligations. We have not confirmed the nonresident prize rule on an official page.
Common questions
Does every Maine prize pay 9.15%?
No. The additional 2% applies only to taxable income above $1 million single or $1.5 million joint. The calculator uses the top rate as a conservative estimate.
Sources
- IRS Topic 419: Gambling income and losses
- IRS Instructions for Forms W-2G and 5754
- Brackets with 7.15% top. 2% surcharge from 2026 over $1,000,000 single / $1,500,000 joint and HoH.
- Lottery withholds 24% federal and 7.15% state on prizes over $5,000.
- Gambling withholding at the highest marginal rate for the year paid.
Calculate for Maine: Powerball · Mega Millions · any prize amount