MARYLAND LOTTERY TAX · TAX YEAR 2026
Maryland lottery tax calculator
Maryland taxes lottery winnings as income, at rates from 2% to 6.5% plus county tax. On a $1,000,000 prize with $75,000 of wages, a single filer owes $91,946 of Maryland and Montgomery County tax and $340,080 of federal income tax, $432,026 in all, and keeps $567,974.
Tax on your prize
- Total tax on the prize
- $432,026.02
- Federal income tax
- $340,080.25
- Maryland and Montgomery County tax
- $91,945.77
- After-tax prize
- $567,973.98
- Effective rate
- 43.20%
- Federal withholding at 24%
- $240,000.00
- Maryland withholding at 9.5% (2025)
- $95,000.00
- Still owed at tax time
- $97,026.02
Maryland tax by size of prize
What a single filer with $75,000 of wages owes on a prize, and what Maryland withholds from it. Maryland figures include Montgomery County tax.
| Prize | Federal tax | State tax | State withholding |
|---|---|---|---|
| $10,000 | $2,200 | $795 | $950 |
| $100,000 | $23,064 | $8,554 | $9,500 |
| $1 million | $340,080 | $91,946 | $95,000 |
| $10 million | $3,670,080 | $964,946 | $950,000 |
Maryland lottery tax questions
Does Maryland tax lottery winnings?
Yes. Maryland taxes lottery winnings as income, at rates from 2% to 6.5% plus county tax.
How much tax is due on a $1,000,000 lottery prize in Maryland?
A single filer with $75,000 of wages owes $340,080 of federal income tax and $91,946 of Maryland and Montgomery County tax on a $1,000,000 prize, $432,026 in all, and keeps $567,974. On a $100,000 prize, Maryland tax is $8,554 and federal tax $23,064.
How much is withheld from a Maryland lottery prize?
Maryland withholds 9.5%, its 2025 published rate, for state tax and 24% for federal tax from a prize over $5,000. On a $1,000,000 prize, $335,000 is withheld against $432,026 of tax, leaving $97,026 to pay at tax time.
Do nonresidents pay Maryland tax on a Maryland Lottery prize?
Yes. Maryland withholds 8.75% of a nonresident's prize over $5,000, against 9.5% for a resident. A prize from $601 to $5,000 has no Maryland withholding but is still taxable.
What the calculator leaves out
Federal tax stacks the prize on wages after the 2026 standard deduction and taxes it at the ordinary brackets. Withholding treats the whole prize as winnings, though the IRS tests winnings minus the wager. The calculator takes the cash received this year: a lump sum is taxed in full the year it is paid, and annuity payments are taxed each year as they are received. Gambling losses are left out; only filers who itemize can deduct them, and from 2026 only up to 90% of losses. Tax another state may charge on a ticket bought there is left out.
Sources
- IRS Topic 419, Gambling income and losses
- IRS Instructions for Forms W-2G and 5754
- IRS Publication 505 (2026), Tax Withholding and Estimated Tax
- IRS Revenue Procedure 2025-32: 2026 tax brackets
- Comptroller of Maryland: gambling winnings and your Maryland tax obligations
- Maryland Lottery: FAQs
- 2026 estimated tax worksheet: rate schedules, standard deduction, exemptions and local rates