Maryland lottery taxes: 6.5% state, plus county tax
Rate checked on November 4, 2026 against the sources listed at the end of this page.
Maryland raised its top income tax rates in its 2025 session. Since tax year 2025 there is a 6.25% bracket above $500,000 (single) or $600,000 (joint) and a 6.5% bracket above $1,000,000 (single) or $1,200,000 (joint). A lottery jackpot lands well inside the top bracket, so we use 6.5%. That slightly overstates the tax on the first million.
Maryland is also one of the few states where a local income tax applies to almost every resident: each county, and Baltimore City, adds its own rate.
Take-home pay on a lump-sum prize in Maryland
The table applies the top federal rate of 37% plus 6.5% Maryland state tax (top bracket; county tax of 2.25% to 3.30% not included). 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 | −$65,000 | $565,000 |
| $10.00M | −$3.70M | −$650,000 | $5.65M |
| $100.00M | −$37.00M | −$6.50M | $56.50M |
| $500.00M | −$185.00M | −$32.50M | $282.50M |
| $1.00B | −$370.00M | −$65.00M | $565.00M |
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.
County tax: not included in the calculator
For 2026 Maryland's local income tax rates run from 2.25% (Wicomico County) to 3.30% (for example Kent and Frederick counties). The 2025 law raised the county cap to 3.30%. Anne Arundel and Garrett counties use tiered rates. County tax is not included in our calculator or in the table above. A resident of a 3.30% county pays about 6.5% + 3.3% = 9.8% in state and local tax on most of a jackpot.
What is withheld when you claim
The Comptroller's 2026 withholding guide sets withholding on lottery and other gambling winnings over $5,000 at 9.50% for Maryland residents (covering state and local tax) and 8.75% for nonresidents. The guide notes that gambling withholding rates changed for 2026. Withholding is not the final bill: a resident of a high-rate county can owe a little more when filing.
Nonresidents: the special nonresident tax
Nonresidents do not pay county tax, but Maryland charges them an additional state tax equal to the lowest local rate, 2.25% in 2026. This nonresident tax is not included in our calculator, which uses the state where you live. Residents of Pennsylvania, Delaware, Virginia, West Virginia and the District of Columbia who win with a Maryland ticket should expect the 8.75% withholding. Their home state may tax the prize too; see our Virginia and Pennsylvania guides and ticket state vs home state.
Common questions
What is Maryland's state tax rate on a lottery jackpot?
6.5% on taxable income over $1,000,000 (single) or $1,200,000 (joint), the top bracket since tax year 2025.
How much does the Maryland Lottery withhold?
On winnings over $5,000: 9.50% for Maryland residents (state and local) and 8.75% for nonresidents, per the Comptroller's 2026 withholding guide.
How much of a $100 million cash prize would I keep in Maryland?
About $56.5 million after 37% federal and 6.5% state tax, before county tax. In a 3.30% county, about $53.2 million.
Sources
- IRS Topic 419: Gambling income and losses
- IRS Instructions for Forms W-2G and 5754
- Comptroller of Maryland: 2026 Employer Withholding Guide (gambling withholding 9.50% / 8.75%, PDF)
- Comptroller of Maryland: Withholding Tax Facts 2026 (brackets, county rates, nonresident tax, PDF)
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