Maryland Lottery Tax Calculator
Enter a prize amount.
Withheld at payout
(24% federal + 9.5% state)
Check you receive
at claim time
Estimated keep after
ALL taxes at top rates
Estimates assume the top federal bracket (37%) and the top Maryland rate (6.5%) on the full prize, which is close to reality for jackpots and conservative for smaller prizes. Local taxes (see below), deductions, and filing status change the exact number. This is education, not tax advice.
Quick Answer
Quick Answer: How Maryland Taxes Lottery Winnings
The Maryland Lottery withholds 9.5% state tax on prizes over $5,000 plus 24% federal. Maryland's 6.5% rate means the state withholding generally matches what you owe. Federally, large prizes are taxed at up to 37% even though only 24% is withheld up front.
Maryland Lottery Tax Facts
| State withholding on large prizes | 9.5% (prizes over $5,000) |
| Top state rate you may actually owe | 6.5% (graduated) |
| Local taxes | County/Baltimore City local income tax of 2.25%-3.3% applies on top of state tax; nonresident lottery withholding is 8.75% |
| Federal withholding | 24% on prizes over $5,000 |
| Top federal bracket | 37% |
| Claim deadline | 182 days from the drawing date |
| Winner anonymity | Anonymous permitted - winners have the right to remain anonymous; name released only with written consent |
2025 BRFA added 6.25%/6.5% brackets and raised lottery withholding from 8.95% to 9.5% resident
Withholding Is Not the Bill
On any prize over $5,000 the lottery sends 24% straight to the IRS before you see a dollar. A large prize, however, lands mostly in the 37% federal bracket, so the true federal bill runs well past what was withheld. In Maryland the 6.5% graduated rate means state withholding and state liability generally line up. Winners who spend to the post-withholding number get an ugly surprise in April. Set the difference aside the week you claim.
Local Taxes in Maryland
County/Baltimore City local income tax of 2.25%-3.3% applies on top of state tax; nonresident lottery withholding is 8.75%. Local layers rarely get withheld by the lottery, which makes them the most commonly missed line on a winner's first return.
Claiming Rules That Matter in Maryland
The claim window is 182 days from the drawing date. Anonymity: anonymous permitted - winners have the right to remain anonymous; name released only with written consent.
Already Collecting Annual Lottery Payments?
If you took the annuity and your plans have changed, you can sell some or all of your remaining installments for a lump sum through a court-approved assignment. The lump sum keeps the same tax character as the payments it replaces, and quotes through this site disclose the exact discount rate in writing. Transactions are funded and completed by our funding partner, Genex Capital, after court approval. Start with the Maryland lottery payments page or request a free quote.