PBPowerballTax

8.75% state lottery tax

Maryland Powerball Tax Calculator

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Maryland applies a 8.75% state lottery tax — among the higher U.S. rates. Combined with federal taxes, the effective tax on a large jackpot exceeds 40%.

Note: 8.75% rate plus local surtax for non-residents

Maryland after-tax take-home by jackpot tier

24% federal withholding + top-bracket adjustment + state tax. Cash lump sum estimated at 60% of advertised jackpot.

AdvertisedCash take-homeCash effectiveAnnuity take-home
$100M$32.6M45.61%$54.3M
$300M$97.7M45.7%$162.8M
$500M$162.8M45.72%$271.3M
$700M$227.9M45.73%$379.8M
$1B$325.6M45.74%$542.6M
$1.5B$488.3M45.74%$813.8M
$2B$651.1M45.74%$1.1B

Maryland vs neighboring states ($1B cash)

StateRateCash take-home
Maryland (MD)8.75%$325.6M
Delaware (DE)6.6%$338.5M
Pennsylvania (PA)3.07%$359.7M
Virginia (VA)5.75%$343.6M

Frequently asked questions

Does Maryland tax Powerball winnings?

Maryland taxes Powerball winnings at 8.75%. Note: 8.75% rate plus local surtax for non-residents.

How much does a $1 billion Powerball winner take home in Maryland?

On a $1 billion advertised jackpot taken as cash (gross $600,000,000), a Maryland winner keeps approximately $325,583,278 after taxes — an effective rate of about 45.74%.

Can I avoid Maryland lottery tax by moving states before claiming?

No. State lottery tax is determined by the state where the ticket was sold, not the winner's residence. A ticket bought in Maryland is taxed at Maryland's 8.75% rate; the winner's home state may credit or assess additional tax at filing.

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