Maryland Salary Calculator

Maryland Gambling & Lottery Tax Calculator

Estimate the federal and Maryland state tax withholding on your lottery prizes, sports betting payouts, casino winnings, and horse racing wagers.

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Maryland · 2026 tax year · salaried or hourly

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How it works

Follow the exact steps to get your result instantly and privately.

STEP 1

Enter winnings and wager

Input your total gross prize amount and the amount you bet or paid for the ticket. The wager is deducted from the winnings to calculate tax.

How Maryland Gambling and Lottery Taxes Work

All gambling and lottery winnings are considered taxable income by both the IRS and the State of Maryland. For winnings that exceed $5,000, tax withholding is automatically deducted at the time of payout. The federal government requires a flat 24% withholding. The State of Maryland requires 9.5% withholding for Maryland residents and 8.75% for non-residents. Keep in mind that withholding is just an estimate; your final tax rate depends on your total annual tax bracket when you file your returns.

Tax Breakdown Layers
Calculation Model
v2026.1
Taxable Winnings = Gross Winnings − Wager
Federal Withholding (if > $5k) = Taxable Winnings × 24%
Maryland Withholding (if > $5k) = Taxable Winnings × 9.5% (Resident) or 8.75% (Non-Resident)
Total Withholding = Federal Withholding + Maryland Withholding
Estimated Net Payout = Gross Winnings − Total Withholding
Live Example
Verified

Example: You win $50,000 on a $2 lottery ticket. Since the prize exceeds $5,000, withholding applies. Taxable winnings are $49,998. Federal withholding (24%) is $11,999.52. Maryland resident withholding (9.5%) is $4,749.81. Total taxes withheld at payout are $16,749.33, leaving an estimated net payout of $33,250.67.

Worked examples

$10,000 lottery win, $2 ticket (Resident)

📋
9.5% state tax + 24% federal tax
ResultFederal: $2,399.52 | State: $949.81 | Estimated payout: $6,650.67

$100,000 casino win, $100 wager (Non-Resident)

📋
8.75% state tax + 24% federal tax
ResultFederal: $23,976 | State: $8,741.25 | Estimated payout: $67,282.75

$3,000 sports bet win, $50 wager (Any Residency)

📋
Under the $5,000 threshold (No automatic withholding)
ResultFederal: $0 withheld | State: $0 withheld | Payout: $3,000 (Reportable on tax return)
DID YOU KNOW?

| Quick facts

  • Gambling and lottery winnings are subject to ordinary federal and Maryland state income taxes, regardless of the amount.

  • For prizes over $5,000, federal tax is withheld at a flat rate of 24%.

  • Maryland requires a flat 9.5% withholding on prizes over $5,000 won by Maryland residents, and 8.75% for non-residents.

  • Wagers or ticket costs are deductible from the gross prize to determine the taxable portion.

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Frequently asked questions

For winnings over $5,000, Maryland automatically withholds a flat 9.5% for Maryland residents and 8.75% for non-residents. If winnings are under $5,000, nothing is withheld at payout, but the winnings must still be reported on your tax return and will be taxed at your standard progressive Maryland state and local tax brackets.

Yes. You only pay taxes on your net winnings (the gross prize minus the cost of the winning ticket or wager). You cannot deduct other losing tickets or wagers directly from your payout at the counter, but you may be able to claim losing wagers as an itemized deduction on your federal return up to the amount of your winnings.

For most gambling winnings over certain thresholds (e.g., $1,200 for slots/bingo, $1,500 for keno, or $5,000 for poker tournaments or lottery), the payer is required to issue a Form W-2G to you and the IRS, reporting the payout and any taxes withheld.

Yes. Maryland taxes all gambling and lottery winnings originating within the state. If you are a non-resident and win a prize over $5,000 at a Maryland casino, racetrack, or lottery, a flat 8.75% state tax is automatically withheld.

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