Daily fantasy sports winnings tax in Maryland
Maryland taxes daily fantasy winnings as ordinary income at graduated rates from 2% to 6.5%.
Updated · 2026 tax rules · How we calculate
You keep
$4,163
Cash at payout
$5,000
Total tax
$838
Due when you file
$838
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $238
- Still to pay when you file
- $838
- You keep
- $4,163
Daily fantasy sites report net winnings of $2,000 or more for the year on a 1099-MISC.
Daily fantasy sports winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file. If you don't give the payer your Social Security number, 24% backup withholding applies.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 12% bracket.
Maryland taxes gambling winnings as ordinary income.
Tax owed ($838) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $838 in federal and state tax: an effective rate of 16.8%.
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.
The rules
- Maryland tax
- Maryland taxes daily fantasy winnings as ordinary income at graduated rates from 2% to 6.5%.[1]
- Federal tax form
- Daily fantasy sites generally report net winnings of $2,000 or more for the year on Form 1099-MISC, not a W-2G. The 1099-MISC threshold was $600 before 2026.[2]Unverified
- Federal withholding
- Fantasy sites don't withhold federal tax from winnings in practice.[2]Unverified
- Maryland withholding
- Maryland withholds 8.75% for nonresidents on daily fantasy winnings over $5,000. Maryland withholds 9.5% on daily fantasy winnings over $5,000.[3]
- 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.[4]Unverified
- Visitors
- Maryland taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Maryland.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $71 | $1,249 |
| $2,000 | Yes | $0 | $240 | $95 | $1,665 |
| $5,000 | Yes | $0 | $600 | $238 | $4,163 |
| $10,000 | Yes | $950 | $1,550 | $475 | $7,975 |
| $100,000 | Yes | $9,500 | $22,114 | $4,963 | $72,923 |
Questions
- How much is Maryland tax on daily fantasy winnings?
- Maryland taxes daily fantasy winnings as ordinary income at graduated rates from 2% to 6.5%.[1]
- Does Maryland withhold tax from daily fantasy winnings?
- Maryland withholds 8.75% for nonresidents on daily fantasy winnings over $5,000. Maryland withholds 9.5% on daily fantasy winnings over $5,000.[3]
- Do visitors pay Maryland tax on daily fantasy winnings?
- Maryland taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
More for Maryland
All of Maryland's gambling tax rules · Daily fantasy sports in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms 1099-MISC and 1099-NEC (2026) · checked September 22, 2026
- [3] Maryland Tax Alert: Gambling Winnings and Your Maryland Tax Obligations (effective July 1, 2025) · checked September 22, 2026
- [4] DLS Fiscal and Policy Note, HB 926 (2026 Session) · checked September 22, 2026
- [5] Maryland Withholding Tax Facts, January 2026 · checked September 22, 2026