How much tax do you pay on lottery winnings in Maryland?

Maryland taxes lottery winnings at up to 6.5%, its top marginal income tax rate. That is on top of federal tax of up to 37%. On the current Powerball cash value of $326 million, Maryland state tax alone would be about $21,190,000.

Is it better to take the lump sum or annuity in Maryland?

The state rate of 6.5% applies to both, so Maryland's tax treatment does not favour one over the other. The decision comes down to whether you want control of the capital or the structural protection of a payment stream.

How much is withheld immediately?

The lottery withholds 24% federally at claim time, plus 9.5% for Maryland state tax. That is less than you actually owe. The top federal bracket is 37%, and the difference is due when you file.

How much tax is withheld from a Maryland Powerball or Mega Millions jackpot?

For prizes over $5,000 the Maryland Lottery withholds 24% federal tax plus 9.5% state tax if you are a Maryland resident, or 8.75% if you are not. Maryland's top state rate is 6.5% and county tax adds 2.25% to 3.30% for residents, so a resident in a 3.20% county owes about 9.7% in total and may owe a little more at filing.

Do I have to claim a Maryland jackpot in person?

Prizes over $25,000 must be claimed at Maryland Lottery headquarters in Baltimore by appointment, with no walk-ins. You can mail a claim for any amount, but mail claims take at least 30 business days to process. You have 182 days from the drawing date to redeem a Powerball or Mega Millions ticket.

Maryland lottery tax calculator

Q: Can lottery winners stay anonymous in Maryland?

Yes, winners may remain anonymous. Maryland's top state rate of 6.5% is moderate, but a mandatory county income tax of up to 3.3% on top makes it one of the most expensive states to win in. It is also one of the few high-tax states that lets winners stay anonymous.

Maryland taxes lottery winnings at up to 6.5%, on top of federal tax of up to 37%.

State rate

6.5%

11th highest of 46 lottery states

Anonymity

Yes, winners may remain anonymous

Local tax

3.2% county income tax

Maryland's top state rate of 6.5% is moderate, but a mandatory county income tax of up to 3.3% on top makes it one of the most expensive states to win in. It is also one of the few high-tax states that lets winners stay anonymous.

Now spend it: $184.2 million from MarylandWhat the current Powerball leaves you here, carried straight into the planner. Buy the house, then see what the rest pays you every year.

Maryland takes one of the largest state cuts of any jackpot. For prizes over $5,000 the Lottery withholds 9.5% for state and local tax from residents, plus 24% federal. The top state rate is 6.5% on income over $1 million for a single filer (over $1.2 million for joint filers), and 2026 county rates run from 2.25% in Worcester County to 3.30% in Dorchester and Kent counties, with most at 3.20%. A jackpot winner in a 3.20% county ends up at 9.7% total, so the 9.5% withheld can fall slightly short and the balance is due at filing.

The size of the cut shows up fast on a big win. When Maryland's largest prize, a $731.1 million Powerball jackpot sold in Lonaconing on January 20, 2021, had a cash value of $546.8 million, the Lottery put the state tax at about $49 million. That was at the 8.95% rate then in effect. At today's 9.5%, the same cash value would see about $52 million withheld, before the 24% federal share. Withholding rates were updated effective July 1, 2025 after Maryland added higher brackets at $500,000 and $1 million for single filers.

Maryland pairs that high tax with strong privacy and a strict claim process. Any winner can stay anonymous, and the Lottery releases no name or photo without written consent. Winners of more than $25,000 must make an appointment at the Baltimore headquarters. A Pennsylvania couple who won a $128.8 million Powerball jackpot on a ticket sold in Elkton arrived with legal counsel, stayed anonymous, and had not yet picked between the annuity and roughly $81 million in cash when the Lottery announced the win.

Lump sum vs annuity in Maryland

Powerball is currently advertising $760 million, with a cash value of $326 million. Here is what a single filer in Maryland would keep under each payout option.

Lump sum

One payment of $326 million, today

$184,240,000

Federal tax: $120,570,000
Maryland tax: $21,190,000
Effective rate: 43.48%

30-year annuity

$760 million paid across 29 years

$430,899,992

First payment, after tax: $6,513,086
Final payment, after tax: $26,652,939
Total advantage: +$246,659,993

The annuity pays $246,659,993 more in total, but the lump sum can be invested immediately and stays under your control. Around nine in ten winners take the cash. See how to decide between them.

Claiming a jackpot in Maryland

Deadline: Draw game tickets, including Powerball and Mega Millions, must be redeemed within 182 days of the drawing date.
Where to claim: Prizes over $25,000 must be claimed at Maryland Lottery headquarters, 1800 Washington Boulevard in Baltimore, by appointment only; walk-ins are not accepted. Mail claims are accepted for any amount but take at least 30 business days, and for prizes over $600 you must include copies of your photo ID and Social Security documentation.
Staying anonymous: Anyone who wins on a draw game, FAST PLAY or scratch-off ticket has the right to remain anonymous, and the Lottery will not release a name or photo without the winner's written consent. The exception is the My Lottery Rewards second-chance and Points for Drawings contests, where winners are published.
Living in another state: Maryland taxes nonresidents too: the Comptroller says both residents and nonresidents owe Maryland income tax on lottery winnings, and the Lottery withholds 8.75% from a nonresident winner on prizes over $5,000, which is lower than the 9.5% for residents. A Maryland resident who wins in another state is still taxed by Maryland, and can claim a credit on Form 502CR for income tax paid to the other state, which is split into a state portion and a local portion.

Run your own numbers

Switch games, compare the annuity, change your filing status, then plan what to do with what is left.

1. Choose a jackpot

Powerball

$760 million

Cash value $326 million

Next draw Saturday, October 31

Mega Millions

$463 million

Cash value $194.9 million

Next draw Friday, October 30

2. Where did you buy the ticket?

Filing status

Payout

Add county income tax

3. What you actually take home

Your estimated take-home

$184,240,000

43.48% of the prize goes to tax

You keep$184,240,00056.52%

Federal tax$120,570,00036.98%

Maryland tax$21,190,0006.5%

Cash value (lump sum)	$326,000,000
Federal tax withheld24% taken automatically at claim time	−$78,240,000
Additional federal tax due at filingThe gap between 24% withholding and your real bracket	−$42,330,000
Maryland state tax6.5% top marginal rate	−$21,190,000
Total tax	−$141,760,000
You keep	$184,240,000

The lottery withholds $78,240,000 up front, but your actual federal bill is $120,570,000. Set aside roughly $42,330,000 for April. This shortfall is the most common surprise for jackpot winners.

4. Plan what to do with it

The hard part is not the windfall, it is what is left in year ten. Sketch out your spending and see what the remainder can pay you every year, indefinitely.

What would you buy first?

Tap an idea to add it at a typical price, or dream up your own. Every amount stays editable once it is in your plan.

The fun part

The people you love

Something else

Amount (USD)

Your plan

Nothing yet. Start spending and watch what is left keep paying you.

After-tax winnings: $184,240,000
Planned spending: −$0
Left to invest: $184,240,000

Paid to you every year, for life

$7,369,600

That is $614,133 a month, or about 84 times the typical American household's income, without touching the principal.

Assumes the remaining $184,240,000 is invested and you draw 4.0% a year, the standard planning rule for money meant to last indefinitely.

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Anyone with the link sees your breakdown and can build their own.

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Maryland lottery tax questions

Compare with other states

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Rates reflect each state's top marginal income tax rate as applied to lottery winnings, current as of 2026-01-01. The amount withheld at claim time frequently differs. This is an estimate for planning, not tax advice.

Maryland claim rules checked 2026-10-02 against: