ChamTax is a free calculator that shows the actual after-tax take-home amount for US Powerball and Mega Millions jackpots. Here's how a Powerball or Mega Millions win is taxed for a Maryland resident — combining the federal tax hit with Maryland's own lottery tax rate (6.5%).
Last updated: 2026-08-18
$1,000,000 win in Maryland, single filer estimate
Maryland taxes lottery winnings at a 6.5% top state rate in this calculator's model — a new top bracket added in 2025 for taxable income over $1,000,000 — applied on top of the federal tax bite.
Maryland counties also levy their own local income tax (roughly 2.25%–3.20% depending on where you live), and this calculator, like the rest of ChamTax, models state-level tax only — it does not add county tax on top, for consistency with how every other state here is calculated. That's also part of why the Maryland Lottery's actual withholding on a resident's prize (9.5%) is higher than the 6.5% state-only rate shown above: the withholding table bakes in an assumed average local tax. Your real total will depend on your specific county, so budget for a bit more than this page's estimate.
Whichever state you live in, the IRS automatically withholds a flat 24% from a lottery prize the moment it's paid out. That 24% is only the up-front withholding, though — it is not the final bill. For a jackpot-sized win, the actual top federal marginal rate is 37%, so most jackpot winners end up owing a significant additional amount when they file their return the following year. This calculator (like the quick-answer box above) shows the true 37% outcome, not just the smaller 24% withheld at the register, so the number you see here is the one to actually plan around.
Powerball and Mega Millions winners choose between a smaller lump-sum cash payout today or the full advertised jackpot paid out as an annuity over 29-30 years. Choosing lump sum vs. annuity changes the size and timing of the payments, but it does not change the tax rates that apply — federal and Maryland state tax (where applicable) are calculated the same way either way, just against a smaller total (the lump sum) or a series of smaller annual payments (the annuity). Most jackpot winners historically choose the lump sum. This is general information, not financial advice — the better choice depends on your own circumstances.
See your own after-tax amount in Maryland
Open the calculator →On a $1,000,000 win, the IRS withholds 24% immediately, but a jackpot-sized prize actually falls in the top 37% federal bracket, so a Maryland resident should plan for 37% federal tax — $370,000 — plus Maryland's state tax of 6.5% ($65,000), for an estimated take-home of about $565,000. Use the calculator above for other amounts.
There's no single right answer — it depends on your own financial situation, and this isn't financial advice. A lump sum gives you the full (smaller) amount immediately, which you could invest yourself, while an annuity spreads the full advertised jackpot over 29-30 years of payments. Tax rates apply the same way to either option; the difference is the total amount and the timing, not the rate.
Yes. You don't need US citizenship or residency to claim a US lottery prize — anyone who legally bought the winning ticket can collect. However, nonresident aliens (non-US-citizens without US tax residency) face a flat 30% federal withholding rate instead of the 24%-withheld/37%-top-rate treatment that applies to US residents.
The IRS withholds 24% immediately when a lottery prize is paid out. But 24% is just the withholding — for a jackpot-sized win, the real top marginal federal tax rate is 37%, so most winners owe additional federal tax beyond the 24% withheld once they file. Nonresident aliens instead face a flat 30% withholding rate.
This page is an informational simulator only and does not broker or facilitate lottery ticket purchases. Actual tax owed depends on individual circumstances and the exchange rate/tax law in effect at filing time — consult a qualified tax professional.