Poker tournaments winnings tax in Maryland
Maryland taxes poker tournament winnings as ordinary income at graduated rates from 2% to 6.5%.
Updated · 2026 tax rules · How we calculate
You keep
$15,300
Cash at payout
$18,100
Total tax
$4,700
Due when you file
$2,800
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $3,750
- State tax
- $950
- Maryland withholding at payout
- $1,900
- Still to pay when you file
- $2,800
- You keep
- $15,300
$20,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
Poker tournaments 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 22% bracket.
Maryland taxes gambling winnings as ordinary income.
Maryland requires the payer to hold back 9.5% for state tax.
Tax owed ($4,700) minus what was withheld ($1,900). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$20,000 minus $4,700 in federal and state tax: an effective rate of 23.5%.
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 poker tournament winnings as ordinary income at graduated rates from 2% to 6.5%.[1]
- Federal tax form
- Poker tournament winnings of $2,000 or more, net of the buy-in, are reported on a W-2G. No 300x test applies.[2]Unverified
- Federal withholding
- Poker tournament winnings aren't subject to regular withholding if the payer files a W-2G and gives you a copy.[2]Unverified
- Maryland withholding
- Maryland withholds 8.75% for nonresidents on poker tournament winnings over $5,000. Maryland withholds 9.5% on poker tournament 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 poker tournament winnings won there, so visitors may need to file a nonresident return.[5]
- Where to play
- Maryland has casinos.[6]Unverified
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 | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $71 | $1,249 |
| $2,000 | Yes | $0 | $240 | $95 | $1,665 |
| $10,000 | Yes | $950 | $1,550 | $475 | $7,975 |
| $20,000 | Yes | $1,900 | $3,750 | $950 | $15,300 |
| $100,000 | Yes | $9,500 | $22,114 | $4,963 | $72,923 |
Questions
- How much is Maryland tax on poker tournament winnings?
- Maryland taxes poker tournament winnings as ordinary income at graduated rates from 2% to 6.5%.[1]
- Does Maryland withhold tax from poker tournament winnings?
- Maryland withholds 8.75% for nonresidents on poker tournament winnings over $5,000. Maryland withholds 9.5% on poker tournament winnings over $5,000.[3]
- Do visitors pay Maryland tax on poker tournament winnings?
- Maryland taxes nonresidents on poker tournament winnings won there, so visitors may need to file a nonresident return.[5]
More for Maryland
All of Maryland's gambling tax rules · Poker tournaments in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · 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
- [6] Maryland Lottery and Gaming: Sports Wagering · checked September 22, 2026