A Powerball jackpot bought in Maryland is taxed at 9.7% at the state level, among the highest in the country. On today's $674,000,000 jackpot that is about $27,537,214 to Maryland, leaving $151,362,730 from the $283,888,800 cash option.
Maryland taxes lottery prizes twice: a 6.5% state rate plus a county income tax of up to 3.2%. That combination makes Maryland one of the more expensive states to win in, and it is the reason the state withholds 8.75% from large prizes.
Calculate your take-home
Maryland Powerball payout after tax
| Line | Lump sum | Annuity (30 payments) |
|---|---|---|
| Advertised jackpot | $674,000,000 | $674,000,000 |
| Amount paid out before tax | $283,888,800 | $674,000,000 |
| Federal tax (37% bracket) | −$104,988,856 | −$247,880,007 |
| Maryland tax (9.7%) | −$27,537,214 | −$65,378,000 |
| You keep | $151,362,730 | $360,741,992 |
| Share of the advertised jackpot | 22.5% | 53.5% |
Built from today's live cash value ($283,900,000). Single filer, standard deduction, no other income.
How Maryland taxes lottery winnings
Maryland uses a graduated income tax, and lottery prizes are ordinary income — not capital gains, not a special category. Because a jackpot is far above the highest bracket threshold, the effective state rate on the prize is the top rate, 9.7%.
- Maryland withholds 8.75% from prizes over $5,000 — higher than its own top state rate, because it is collecting county tax too.
- The exact county rate depends on the winner’s county of residence, not where the ticket was bought.
- Maryland also taxes nonresidents who claim Maryland prizes.
- Maryland adds a county income tax of up to 3.2% on top of the 6.5% state rate. The 9.7% figure used here is the upper bound.
Three prizes, worked out for Maryland
| Prize | Cash value | Federal | Maryland | You keep |
|---|---|---|---|---|
| $1M | $421,200 | −$110,554 | −$40,856 | $269,789 |
| $10M | $4,212,000 | −$1,508,440 | −$408,564 | $2,294,996 |
| Current jackpot ($674M) | $283,888,800 | −$104,988,856 | −$27,537,214 | $151,362,730 |
Smaller prizes are worth checking against your own bracket: below roughly $640,600 of taxable income the federal rate is 35% or less, so the flat 37% used here overstates the bill on smaller wins.
If you live in Maryland but buy elsewhere
Lottery income is generally taxed by the state where the ticket was purchased, and again by your state of residence, with a credit for tax paid to the first state. That credit is usually capped at the home state's own rate, so a higher-tax home state still collects the difference.
Maryland is surrounded by states with similar rates (Washington, D.C. 10.75%, Virginia 5.75%, Delaware 6.6%), so where you buy changes the withholding and the filing, but rarely the total by much.
Residency is decided by facts — where you spend the year, where you vote, where your home is — not by the address you write on the claim form. Moving after the win does not retroactively change the state that taxes the prize.
Compare Maryland with its neighbours
| State | Rate on a jackpot | Take-home (lump sum) | Difference |
|---|---|---|---|
| Maryland | 9.7% | $151,362,730 | — |
| Washington, D.C. | 10.75% | $148,381,898 | −$2,980,832 |
| Virginia | 5.75% | $162,576,338 | +$11,213,608 |
| Delaware | 6.6% | $160,163,283 | +$8,800,553 |
All 46 jurisdictions are listed in the state tax index and the full rate table.
Frequently asked
Does Maryland tax Powerball winnings?
Yes. Maryland treats a Powerball jackpot as ordinary income and taxes it at 9.7% at the top marginal rate. On the current $674M jackpot that is about $27,537,214 on a lump-sum claim. Maryland adds a county income tax of up to 3.2% on top of the 6.5% state rate. The 9.7% figure used here is the upper bound.
How much would I keep from the current jackpot in Maryland?
About $151,362,730 on the cash option ($283,888,800), or about $360,741,992 if you take the 30-payment annuity and stay in Maryland for all of it. Both figures are before any local tax, professional fees or other income.
Do I pay Maryland tax if I buy the ticket in another state?
It depends on residency. Maryland taxes its residents on income wherever it arises, and the state where you bought the ticket may withhold too. You would normally claim a credit in Maryland for tax paid to the other state. The state of purchase is not automatically the only one that taxes you.
Can I claim anonymously in Maryland?
Anonymity rules are set by the state lottery, not the tax code, and they change. Some states let a trust or LLC claim in place of the individual; others publish the winner's name regardless. Check the Maryland lottery claim rules before you sign the back of the ticket.