Maryland Lottery
Maryland Lottery Tax Calculator
Maryland stacks a county income tax of 2.25% to 3.30% on top of state rates that now reach 6.5%, which is why the Maryland Lottery withholds 9.5% from residents’ prizes over $5,000.
Verified · tax year 2026
Maryland prize — results
Take-home
59% kept of $1,000,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $1,000,000 |
|---|---|
| Federal income tax | −$320,000 |
| Tax to Maryland | $0 |
| Maryland tax | −$58,385 |
| Local income tax | −$32,000 |
| You keep | $589,615 |
| Federal withholding (24%) | −$240,000 |
|---|---|
| State withholding | −$95,000 |
| Check you receive | $665,000 |
| Still owed when you file | $75,385 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
State brackets plus your county
Maryland’s state schedule climbs from 2% to 4.75% quickly, then adds 5%, 5.25%, 5.5% and 5.75% steps, with 6.25% above $500,000 and 6.5% above $1,000,000 for single filers ($600,000 and $1.2 million joint). Counties and Baltimore City then levy their own tax on Maryland taxable income. A Montgomery County resident who wins $1,000,000 pays $58,385 in state tax and $32,000 at Montgomery’s 3.20% local rate, against Lottery withholding of $95,000.
Nonresidents pay a “special nonresident tax”
A Virginian or Pennsylvanian who wins in Maryland is withheld 8.75%. Maryland taxes the prize at state rates and replaces the county tax with a special nonresident tax figured at the lowest local rate, 2.25%. For a Virginia resident with a $1,000,000 Maryland prize this calculator shows $80,885 to Maryland; it then credits that against Virginia’s own tax on the prize, leaving $0 for Virginia — confirm the credit on the Virginia return.
Anne Arundel and Frederick counties use graduated local rates; their 3.20% top rate is applied here as an upper bound.
Maryland at a glance
| State income tax on winnings | Up to 6.5% |
|---|---|
| Rate table used | Rates published for 2025, unchanged for 2026 (Comptroller table) |
| Lottery | Maryland Lottery |
| State withholding at claim | 9.5% over $5,000 |
| Local tax | Maryland county (local income tax) |
What Maryland winners should know
- Maryland adds a county income tax (2.25% to 3.30% for 2026) on top of the state rate, which is why the Lottery withholds 9.5% from residents.
- Nonresidents who win in Maryland are withheld 8.75% and owe Maryland’s special nonresident tax, figured at the lowest local rate (2.25%), in place of a county tax.
- Anne Arundel and Frederick counties use graduated local rates; this calculator applies their 3.20% top rate as an upper bound.
Maryland sources
- Maryland Income Tax Rates and Brackets — Comptroller of Maryland †
- How to Claim; FAQs — Maryland Lottery and Gaming †
Agency: Comptroller of Maryland. † read through a browser session (why). How the math works.
Neighboring states
Delaware · Pennsylvania · Virginia · West Virginia · District of Columbia