Maryland lottery winners now face 9.5% state tax withholding
Maryland takes a bigger cut of lottery prizes than it used to. On any prize over $5,000, the Maryland Lottery withholds 9.5% for state income tax if the winner lives in Maryland and 8.75% if the winner doesn't. That comes on top of 24% federal withholding. The state rates were updated July 1, 2025, when Maryland raised its top income tax rate, the Comptroller of Maryland says.
| Prize | Federal (24%) | Maryland resident (9.5%) | Resident keeps | Nonresident (8.75%) | Nonresident keeps |
|---|---|---|---|---|---|
| $10,000 | $2,400 | $950 | $6,650 | $875 | $6,725 |
| $50,000 | $12,000 | $4,750 | $33,250 | $4,375 | $33,625 |
| $100,000 | $24,000 | $9,500 | $66,500 | $8,750 | $67,250 |
| $1,000,000 | $240,000 | $95,000 | $665,000 | $87,500 | $672,500 |
Withholding isn't the final bill. Maryland residents also owe county income tax on their total income when they file. Big winners usually land in the top federal bracket of 37%, so they can owe more federal tax at filing time than the 24% withheld. Nonresidents may owe tax in their home state too. Our lottery tax calculator estimates the full amount by state.
Prizes of $5,000 or less have nothing withheld, but they are still taxable. The Comptroller says anyone who wins more than $500 without Maryland tax withheld must file Form PV, the personal tax payment voucher, and pay the tax within 60 days of receiving the prize. Prizes over $600 also require a photo ID and a Social Security or tax ID number to claim, the lottery says.
Where to claim depends on the amount. Any Maryland Lottery retailer can pay up to $600. Retailers in its expanded cashing program can pay up to $5,000. Prizes up to $25,000 can be cashed at lottery headquarters or a Maryland casino cashier, where players must be 21. Anything over $25,000 is paid by check at headquarters by appointment, and the lottery says to allow at least 30 business days. Draw-game prizes expire 182 days after the drawing. How Maryland compares with other states is in our state-by-state look at a $1 million win.
How we did this. Withholding rates, the Form PV rule, and the July 1, 2025 update are from the Comptroller of Maryland's tax alert on gambling winnings. Claim limits and deadlines are from the Maryland Lottery's how-to-claim page. Table amounts apply those withholding rates to each prize and do not include county tax or tax owed at filing.
Sources
Comptroller of Maryland: Gambling winnings and your Maryland tax obligations
Frequently Asked Questions
How much tax does Maryland take from lottery winnings?
On prizes over $5,000, the Maryland Lottery withholds 9.5% for Maryland residents and 8.75% for nonresidents, plus 24% federal tax. The rates took effect July 1, 2025, after the state raised its top income tax rate.
How much do you keep from a $1 million Maryland lottery prize?
About $665,000 if you live in Maryland, after 24% federal and 9.5% state withholding, and about $672,500 if you don't. The final tax bill can be higher or lower when you file.
Do you pay Maryland tax on a $1,000 lottery win?
Yes. Nothing is withheld on prizes of $5,000 or less, but the winnings are still taxable. If you win more than $500 without Maryland tax withheld, the Comptroller says to pay with Form PV within 60 days.
Jessie Jurado is a news writer who covers new scratch-off launches, state lottery guides, taxes on winnings, news, and much more. She joined ScratchCheck in 2026 and writes the site's state-by-state coverage.
