Maryland gambling winnings tax calculator
Maryland taxes gambling winnings as ordinary income at graduated rates from 2% to 6.5%.
Updated · 2026 tax rules · How we calculate
You keep
$7,975
Cash at payout
$6,650
Total tax
$2,025
Over-withheld
$1,325
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $475
- Maryland withholding at payout
- $950
- Over-withheld
- $1,325
- You keep
- $7,975
$10,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
Maryland taxes gambling winnings as ordinary income.
Maryland requires the payer to hold back 9.5% for state tax.
More was withheld than these winnings add to your tax. The difference reduces what you owe on the rest of your return, or comes back as a refund.
$10,000 minus $2,025 in federal and state tax: an effective rate of 20.3%.
An estimate for 2026, not tax advice. It treats this win as your only gambling income for the year and leaves out local income taxes. Nothing you enter leaves your browser.
How Maryland taxes gambling winnings
- State income tax
- Maryland taxes gambling winnings as ordinary income at graduated rates from 2% to 6.5%.[1]
- Gambling losses
- You can deduct gambling losses only if you itemize; Maryland itemized deductions generally follow your federal ones. From 2025, itemizers with federal AGI over $200,000 lose 7.5% of the excess from their deductions.[2]Unverified
- Withholding
- Maryland withholds 9.5% from residents' winnings over $5,000 and 8.75% from nonresidents'. Horse-racing winnings are withheld only if they also reach 300 times the wager.[3]
- Nonresidents
- Nonresidents owe Maryland tax on Maryland winnings, plus a special nonresident tax of 2.25% in place of county tax. They file Form 505.[4]
- Tax paid to other states
- Residents can claim a credit for tax paid to another state, split between state and county tax, with limits (for example, not where the other state credits Maryland tax).[5]
- Local tax
- Residents pay county income tax, 2.25% to 3.30% for 2026, on all taxable income including gambling winnings. Nonresidents pay a 2.25% special nonresident tax instead.[4]
- Legal gambling
- Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.[6]Unverified
Also worth knowing
- If you receive more than $500 in winnings with no Maryland tax withheld, you must pay estimated tax on Form PV within 60 days.[3]
- Resident withholding rose from 8.75% to 9.5% on July 1, 2025, after the 2025 budget law added a 6.5% top state rate; nonresidents are still withheld at 8.75%.[3]
- From tax year 2025, itemizers with federal AGI over $200,000 ($100,000 married filing separately) lose itemized deductions equal to 7.5% of the excess, which can shrink the value of deducted gambling losses.[2]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Maryland.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $3,350 | $1,550 | $475 | $7,975 |
| Casino and slots | $5,000 | $0 | $600 | $238 | $4,163 |
| Table games | $5,000 | $0 | $600 | $238 | $4,163 |
| Poker tournaments | $20,000 | $1,900 | $3,750 | $950 | $15,300 |
| Lottery | $50,000 | $16,750 | $10,350 | $2,384 | $37,266 |
| Daily fantasy sports | $5,000 | $0 | $600 | $238 | $4,163 |
| Horse racing | $8,000 | $2,680 | $1,110 | $380 | $6,510 |
Questions
- Does Maryland tax gambling winnings?
- Yes, at graduated rates from 2% to 6.5%.[1]
- Can you deduct gambling losses in Maryland?
- You can deduct gambling losses only if you itemize; Maryland itemized deductions generally follow your federal ones. From 2025, itemizers with federal AGI over $200,000 lose 7.5% of the excess from their deductions.[2]Unverified
- Does Maryland withhold tax from gambling winnings?
- Maryland withholds 9.5% from residents' winnings over $5,000 and 8.75% from nonresidents'. Horse-racing winnings are withheld only if they also reach 300 times the wager.[3]
- Do nonresidents pay Maryland tax on gambling winnings?
- Nonresidents owe Maryland tax on Maryland winnings, plus a special nonresident tax of 2.25% in place of county tax. They file Form 505.[4]
Maryland by game
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] DLS Fiscal and Policy Note, HB 926 (2026 Session) · checked September 22, 2026
- [3] Maryland Tax Alert: Gambling Winnings and Your Maryland Tax Obligations (effective July 1, 2025) · checked September 22, 2026
- [4] Maryland Withholding Tax Facts, January 2026 · checked September 22, 2026
- [5] Md. Code, Tax-General 10-703 · checked September 22, 2026
- [6] Maryland Lottery and Gaming: Sports Wagering · checked September 22, 2026