Maryland Powerball Tax Calculator: How Much Would You Keep?
Estimate a Maryland Powerball cash payout after federal, Maryland State and county income taxes. See the Lottery withholding separately from the estimated final state and local tax bill.
A Maryland Powerball Winner Can Face State Tax and County Tax
Maryland taxes lottery winnings and also has a local income tax based on the winner's county of residence. That means two Maryland residents with the same Powerball cash option can have different final state-and-local tax estimates.
Lottery withholding
For a Maryland resident with a prize over $5,000, the Maryland Lottery currently withholds 9.5% for Maryland tax purposes.
State tax
Maryland's 2026 individual income-tax schedule is progressive and now reaches a 6.5% top marginal State rate.
Local income tax
Maryland counties and Baltimore City add local income tax, with 2026 rates ranging from 2.25% to 3.30% and special graduated schedules in Anne Arundel and Frederick.
The 9.5% withholding is not automatically the final Maryland tax. The calculator separately estimates Maryland State tax and the selected county/local tax, then compares that total with the amount initially withheld.
Maryland Powerball Cash Payout & Tax Calculator
The winning-ticket state is fixed to Maryland. For a Maryland resident, select the county of residence so the calculator can estimate both the State and local tax attributable to the prize.
Maryland Powerball payout estimate
Estimated share of the cash option remaining after modeled federal, State and local tax.
Maryland estimate treats the entered other income as Maryland taxable net income before the prize and does not model deductions, exemptions, credits, capital-gain surtax or unusual adjustments.
Maryland Powerball Withholding Rates
For prizes over $5,000, Maryland Lottery currently deducts federal tax plus a Maryland withholding amount based on residency.
| Winner | Federal withholding | Maryland withholding | What happens next |
|---|---|---|---|
| Maryland resident | 24% | 9.5% | Final Maryland State and county tax are determined on the income-tax return. |
| Nonresident | 24% | 8.75% | Maryland-source tax can still apply, plus the winner's home state may have its own rules. |
Withholding is not double-counted. The calculator displays the Maryland Lottery withholding as money collected up front, then separately estimates final Maryland State and county/local tax.
Maryland's Top State Income-Tax Rate Is Now 6.5%
Maryland's 2026 rate schedule is progressive. The State rate reaches 6.25% above $500,000 for Single/Married Filing Separately and above $600,000 for joint/Head of Household filers, then reaches 6.5% above $1 million or $1.2 million respectively.
What the calculator does
- Uses Maryland's 2026 State tax schedules.
- Uses the selected federal/Maryland filing status.
- Calculates State tax with the prize and without the prize.
- Uses the difference as the estimated Maryland State tax attributable to the Powerball payout.
- Keeps the separate county/local calculation visible.
Maryland Local Income Tax by County in 2026
Maryland local income tax is based on Maryland taxable income and county of residence. Most counties use a single rate, while Anne Arundel and Frederick use graduated local schedules.
At Powerball-sized income, Anne Arundel and Frederick both reach their 3.20% top local rate. The calculator still models their full 2026 local schedules so smaller custom entries behave sensibly too.
What If You Buy the Winning Powerball Ticket in Maryland but Live Elsewhere?
Maryland states that both residents and nonresidents can be subject to Maryland tax on Maryland lottery winnings. The Lottery currently withholds 8.75% Maryland tax from a nonresident prize over $5,000.
The calculator can provide a same-state estimate using the selected county and the 2026 Maryland State schedule.
The calculator shows the published 8.75% Maryland nonresident withholding but does not guess the winner's home-state credit or final cross-state liability.
Maryland Powerball Tax FAQs
Does Maryland tax Powerball winnings?
Yes. Maryland taxes lottery winnings, and Maryland residents can also face county or Baltimore City income tax based on where they live.
How much Maryland tax is withheld from a Powerball jackpot?
For prizes over $5,000, Maryland Lottery currently withholds 9.5% Maryland tax from a resident and 8.75% from a nonresident, in addition to 24% federal withholding.
Is the 9.5% Maryland withholding the final Maryland tax?
Not necessarily. Final Maryland tax is based on the State income-tax calculation plus the applicable county/local tax for a resident. The calculator therefore shows withholding separately from the estimated final Maryland liability.
What is Maryland's top state income-tax rate in 2026?
The top Maryland State marginal rate is 6.5% in 2026. It applies above $1 million of Maryland taxable income for Single/Married Filing Separately and above $1.2 million for joint/Head of Household filing types.
Which Maryland county has the lowest local income-tax rate?
For 2026, Worcester County is listed at 2.25%. Some counties have higher rates, and Dorchester and Kent are listed at 3.30%.
Does Baltimore City add local tax to Powerball winnings?
For a Baltimore City resident, the 2026 local income-tax rate is 3.20% of Maryland taxable income. The calculator includes that local layer when Baltimore City is selected.
Does Maryland tax nonresident Powerball winners?
Maryland's tax guidance says both residents and nonresidents are subject to Maryland income tax on Maryland lottery winnings. The Lottery currently withholds 8.75% Maryland tax from qualifying nonresident prizes.
Why does the calculator ask for my Maryland county?
Maryland local income tax varies by county and Baltimore City. The local tax is based on Maryland taxable income, so county selection can change the estimated final take-home amount.
Does filing status change Maryland Powerball tax?
Yes. Maryland uses different high-income thresholds for Single/Married Filing Separately and Married Filing Jointly/Head of Household taxpayers. Federal filing status also changes the federal bracket thresholds and standard deduction.
Is this Maryland Powerball tax calculator exact?
No. It is an educational estimate. It does not reproduce every Maryland deduction, exemption, credit, capital-gain surtax rule, part-year residency rule or cross-state credit. A real jackpot winner should obtain professional federal and Maryland tax advice.
Official Sources & Last Checked
- Maryland Lottery — FAQ and current Lottery withholding rates
- Maryland Lottery — How to Claim and tax information
- Maryland Comptroller — Gambling Winnings and Your Maryland Tax Obligations
- Maryland Comptroller — 2026 State and local income-tax rates
- Maryland General Assembly — Tax-General §10-105 State rates
- Maryland General Assembly — Tax-General §10-106 county income tax
- IRS — federal gambling withholding
- IRS — 2026 federal tax brackets and standard deductions