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WinningsTax

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

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$
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More options
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You keep

$7,975

Cash at payout

$6,650

Total tax

$2,025

Over-withheld

$1,325

Form W-2G
Yes

$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.

Federal withholding at payout
$2,400

The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.

Federal tax on the winnings
$1,550

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.

State tax
$475

Maryland taxes gambling winnings as ordinary income.

Maryland withholding at payout
$950

Maryland requires the payer to hold back 9.5% for state tax.

Over-withheld
$1,325

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.

You keep
$7,975

$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 on both your federal and Maryland returns. Maryland uses your federal itemized deductions as limited by federal law, so the 90% limit applies. From 2025, itemizers with federal AGI over $200,000 ($100,000 married filing separately) lose 7.5% of the excess from their deductions.[2] How the federal 90% loss rule works
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.[5]
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.[6]
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).[7]
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.[6]
Legal gambling
Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.[8]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.[5]
  • 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%.[5]
  • 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.[9]

Examples by game

For a single filer with $60,000 of other income and no gambling losses, living and winning in Maryland. Maryland ranks 31st of 51 for what you keep from a $10,000 sports bet, and 40th of 51 for a $1 million lottery prize, counting state tax only (Maryland's local income taxes aren't included). See every state ranked.

GameWonWithheldFederal taxState taxYou 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 on both your federal and Maryland returns. Maryland uses your federal itemized deductions as limited by federal law, so the 90% limit applies. From 2025, itemizers with federal AGI over $200,000 ($100,000 married filing separately) lose 7.5% of the excess from their deductions.[2]
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.[5]
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.[6]

Gambling across the border from Maryland

Win in a neighboring state and both states can tax it: the state you won in as a visitor, and Maryland as your home state, usually with a credit for the tax you paid there.

StateTop rateVisitors taxed
District of Columbia10.75%[1]Not taxed[10]
Delaware6.6%[1]Some games[11]Unverified
Pennsylvania3.07%[1]Taxed[12]
Virginia5.75%[1]Taxed[13]
West Virginia4.58%[14]Some games[15]Unverified

Sources

  1. [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  2. [2] Md. Code, Tax-General § 10-218 · checked October 2, 2026
  3. [3] Md. Code, Tax-General § 10-108 (automatic decoupling) · checked October 2, 2026
  4. [4] Comptroller of Maryland Tax Alert: Maryland Impacts of the One Big Beautiful Bill Act · checked October 2, 2026
  5. [5] Maryland Tax Alert: Gambling Winnings and Your Maryland Tax Obligations (effective July 1, 2025) · checked September 22, 2026
  6. [6] Maryland Withholding Tax Facts, January 2026 · checked September 22, 2026
  7. [7] Md. Code, Tax-General 10-703 · checked September 22, 2026
  8. [8] Maryland Lottery and Gaming: Sports Wagering · checked September 22, 2026
  9. [9] DLS Fiscal and Policy Note, HB 926 (2026 Session) · checked September 22, 2026
  10. [10] DC 2025 D-40 Booklet (Who is a Resident?; D-40B) · checked September 22, 2026
  11. [11] Delaware 2025 PIT-NON Instructions (Line 14 Other Income) · checked September 22, 2026
  12. [12] PA PIT Guide, Gambling and Lottery Winnings (PDF) · checked September 22, 2026
  13. [13] Va. Code § 58.1-302, Income and deductions from Virginia sources · checked September 22, 2026
  14. [14] West Virginia Tax Division, Personal Income Tax Reduction Bill · checked September 22, 2026
  15. [15] W. Va. Code § 11-21-32 · checked September 22, 2026
  16. [16] WV TSD 432, Gambling Withholding and Losses (Rev. June 2026) · checked September 22, 2026