Maryland lottery tax at a glance
| State tax on a jackpot | Up to 6.5% |
|---|---|
| Withheld when you claim a jackpot | 24% federal + 9.5% Maryland |
| $1 million prize after taxes | $590,986 |
| $835 Million Powerball jackpot, cash option | $191,307,936 |
| Time to claim a Powerball jackpot | 182 days |
| Stay anonymous | Yes |
Single filer with no other income, lump sum, 2026 rates. Details and sources for each line are below.
Does Maryland tax lottery winnings?
Yes. Maryland taxes lottery prizes as ordinary income, at rates up to 6.5% in 2026. Maryland withholds 9.5% for state tax when the prize is paid. For a large prize, that covers most of the state tax you will owe.
Maryland residents also owe county income tax; the calculator adds the average county rate (2.25%–3.30% by county). Nonresident withholding is 8.75%.
Source: Comptroller of Maryland (“9.5 percent on a resident's winnings; nonresident 8.75 percent”), checked October 1, 2026.
County tax is why Maryland withholds 9.5%
A Maryland resident pays state income tax and a county income tax. On a $1 million prize this model estimates $58,385 of state tax at rates up to 6.5% and $30,629 of county tax at the average county rate, $89,014 in all. The Lottery withholds 9.5% from a resident, $95,000, which covers both, with about $5,986 to spare. A nonresident has 8.75% withheld instead. County rates run from 2.25% to 3.30%, so your own county moves the result.
For comparison, a $10,000 cash prize on top of $60,000 of other income adds $1,550 in federal tax and $475 in modeled Maryland tax, leaving $7,669 from the prize. The estimate subtracts tax on the existing income so that only the prize’s additional tax is charged.
Illustrative 2026 calculation, not a reported payout. Rule source. Model assumptions and corrections.
Maryland Powerball and Mega Millions payout after taxes
A single winner living in Maryland who takes the cash option on the $835 Million Powerball jackpot keeps about $191,307,936, after about $132,373,000 in federal tax and $34,219,064 in Maryland tax. Recalculated daily.
| Game | Maryland tax (lump sum) | Lump sum take-home | Annuity take-home (30 payments) |
|---|---|---|---|
| Powerball$835 Million jackpot · $357.9 Million cash | $34,219,064 | $191,307,936 | $447,898,086 |
| Mega Millions$482 Million jackpot · $203.6 Million cash | $19,463,483 | $108,854,517 | $259,265,184 |
How much is $1 million after taxes in Maryland?
About $590,986. A single filer with no other income pays about $320,000 in federal tax and $89,014 in Maryland tax on a $1,000,000 prize. When you claim, $335,000 is withheld, and the rest of the tax is due when you file.
| Prize (cash) | Federal tax | Maryland tax | Take-home |
|---|---|---|---|
| $1,000,000 | $320,000 | $89,014 | $590,986 |
| $2,000,000 | $690,000 | $184,643 | $1,125,357 |
| $10,000,000 | $3,650,000 | $949,677 | $5,400,323 |
| $100,000,000 | $36,950,000 | $9,556,302 | $53,493,698 |
| $1,000,000,000 | $369,950,000 | $95,622,552 | $534,427,448 |
Lump sum, single filer with no other income, 2026 federal and Maryland rates. A $2,000,000 prize is the Powerball or Mega Millions match-5 prize with the multiplier. Smaller prizes and other states: lottery winnings after taxes by amount.
Claiming in Maryland: 182 days, and prizes over $25,000 in Baltimore
- Maryland draw-game tickets, including Powerball and Mega Millions, must be redeemed within 182 days of the drawing (Maryland Lottery).
- A ticket worth more than $25,000 must be claimed at Maryland Lottery headquarters, 1800 Washington Boulevard in Baltimore, by appointment only. Allow at least 30 business days for payment (Maryland Lottery).
- Maryland pays prizes less any offsets and obligations owed by the winner, so the check can be smaller than the prize minus tax (Maryland Lottery).
Bought the ticket in another state? The deadline is set by the lottery that sold it: see lottery claim deadlines in every state.
Can you stay anonymous in Maryland?
Yes. Draw, scratch-off and FAST PLAY winners may remain anonymous. Second-chance promotions can have separate rules (source). The guide to what to do if you win the lottery compares the rules in every state.
Maryland compared with neighboring states
$835 Million Powerball jackpot, lump sum, by state of residence. A winner living in Pennsylvania keeps $23,231,534 more than a Maryland resident, and one living in Washington, D.C. keeps $4,239,211 less.
| State of residence | State & local tax | Lump sum take-home |
|---|---|---|
| Pennsylvania | $10,987,530 | $214,539,470 |
| West Virginia | $17,249,942 | $208,277,058 |
| Virginia | $20,578,993 | $204,948,007 |
| Delaware | $23,620,384 | $201,906,616 |
| MarylandIncludes average county tax | $34,219,064 | $191,307,936 |
| Washington, D.C. | $38,458,275 | $187,068,725 |
Hypothetical residence-tax comparison only. Tax imposed by the ticket-selling state and credits for tax paid elsewhere are excluded; this is especially important for residents of states without lottery sales. Taxes on lottery winnings explains what happens when you buy in another state.
Estimates for a single filer with no other income unless noted. Formulas and sources: methodology. Every state's rates: lottery tax by state.