8.75% state lottery tax
Maryland Powerball Tax Calculator (2026)
Last updated:
The Maryland comparison model uses a 8.75% headline state rate. Large prizes can produce a combined modeled burden above 40%, before any jurisdiction-specific credits, deductions, or local rules.
Note: 8.75% rate plus local surtax for non-residents
Can Maryland residents buy Powerball in-state?
Maryland is treated here as a regular Powerball ticket-selling state. The calculator uses Maryland as the ticket-state input for estimating federal tax, state tax, and cash lump-sum take-home.
| Powerball sold in-state | Yes, modeled as a standard ticket-state scenario. |
|---|---|
| Modeled resident rate | 8.75% |
| Resident buys out of state | Usually starts with the ticket jurisdiction’s claim, withholding, and nonresident filing rules, then resident-state tax or credits must be checked. |
| Moving before claiming | Do not assume moving avoids tax. Claim date, residency, ticket location, and state law can all affect the final filing position. |
Maryland after-tax take-home by jackpot tier
24% federal withholding + top-bracket adjustment + state tax. Cash lump sum estimated at 60% of advertised jackpot.
| Advertised | Cash take-home | Cash effective | Annuity take-home |
|---|---|---|---|
| $100M | $32.6M | 45.61% | $56.7M |
| $300M | $97.7M | 45.7% | $165.2M |
| $500M | $162.8M | 45.72% | $273.7M |
| $700M | $227.9M | 45.73% | $382.2M |
| $1B | $325.6M | 45.74% | $545.0M |
| $1.5B | $488.3M | 45.74% | $816.2M |
| $2B | $651.1M | 45.74% | $1.1B |
Maryland vs neighboring states ($1B cash)
| State | Rate | Cash take-home |
|---|---|---|
| Maryland (MD) | 8.75% | $325.6M |
| Delaware (DE) | 6.6% | $338.5M |
| Pennsylvania (PA) | 3.07% | $359.7M |
| Virginia (VA) | 5.75% | $343.6M |