Sports betting winnings tax in Maryland
Maryland taxes sports betting 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.
The rules
- Maryland tax
- Maryland taxes sports betting winnings as ordinary income at graduated rates from 2% to 6.5%.[1]
- Federal tax form
- Sports betting winnings are reported on a W-2G when they are $2,000 or more (after subtracting the wager) and at least 300 times the wager. The threshold was $600 before 2026.[2]
- Federal withholding
- 24% is withheld from sports betting winnings of more than $5,000, but only when the win is also at least 300 times the wager.[2]
- Maryland withholding
- Maryland withholds 8.75% for nonresidents on sports betting winnings over $5,000. Maryland withholds 9.5% on sports betting winnings over $5,000.[5]
- 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.[6]Unverified
- Visitors
- Maryland taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[7]
- Where to play
- Sports betting in Maryland: legal online and in person. Winnings from a bet placed in another state are taxable here all the same.[8]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 | No | $0 | $240 | $95 | $1,665 |
| $10,000 | Yes | $3,350 | $1,550 | $475 | $7,975 |
| $100,000 | Yes | $33,500 | $22,114 | $4,963 | $72,923 |
Assumes a $25 stake on this bet, so the 300x test is met at every amount shown.
Questions
- How much is Maryland tax on sports betting winnings?
- Maryland taxes sports betting winnings as ordinary income at graduated rates from 2% to 6.5%.[1]
- Does Maryland withhold tax from sports betting winnings?
- Maryland withholds 8.75% for nonresidents on sports betting winnings over $5,000. Maryland withholds 9.5% on sports betting winnings over $5,000.[5]
- Do visitors pay Maryland tax on sports betting winnings?
- Maryland taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[7]
More for Maryland
All of Maryland's gambling tax rules · Sports betting 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] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
- [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [5] Maryland Tax Alert: Gambling Winnings and Your Maryland Tax Obligations (effective July 1, 2025) · checked September 22, 2026
- [6] DLS Fiscal and Policy Note, HB 926 (2026 Session) · checked September 22, 2026
- [7] Maryland Withholding Tax Facts, January 2026 · checked September 22, 2026
- [8] Maryland Lottery and Gaming: Sports Wagering · checked September 22, 2026