Maryland Sports Betting Tax Calculator
Maryland taxes gambling winnings as ordinary income at graduated brackets (varies by income). Sports betting is legal (online and retail) in Maryland with operators including FanDuel, DraftKings, BetMGM. Maryland has county-level surcharges on top of state income tax. Sports betting legal since 2021.
Calculate Your Maryland Sports Betting Tax
2026 rules: 90% loss deduction cap applies (OBBBA)
Your salary, wages, and other non-gambling income
Losses can only be deducted if you itemize deductions
You cannot deduct gambling losses with the standard deduction. Switch to itemized to deduct losses.
Tax Breakdown
W-2G Form: Likely Required
Your total winnings of $10,000 exceed the $2,000 W-2G threshold for 2026. Individual wins that also meet the 300:1 odds requirement may trigger a W-2G form. Use our W-2G Checker for precise results.
Federal Withholding
$2,400 (24%) would be withheld at the time of payout. You may be due a refund of $1,200.
Maryland Gambling Tax Key Facts
- ✓State income tax: graduated brackets (varies by income)
- ✓Sports betting: legal (online and retail)
- ✓Available sportsbooks: FanDuel, DraftKings, BetMGM, Caesars, Fanatics
- ✓Gambling loss deductions ARE allowed (must itemize)
- ✓8.75% withholding rate for gambling winnings
- ✓County taxes add 1.75-3.2%
- ✓Non-residents pay 8% withholding
How Sports Betting Taxes Work in Maryland
Maryland taxes gambling winnings as ordinary income through graduated tax brackets. Your gambling winnings are added to all other income and taxed accordingly.
Maryland allows gambling loss deductions following federal rules. Under the 2026 OBBBA, losses are deductible at 90% (capped at the amount of winnings) when itemizing deductions.
Maryland Allows Gambling Loss Deductions
Maryland follows federal rules for gambling loss deductions. The 2026 OBBBA 90% cap applies when itemizing.
Maryland Tax Example
A single filer in Maryland earning $60,000 with $10,000 in sports betting winnings and no losses
Licensed Sportsbooks in Maryland
You must be physically located within Maryland to place bets on these platforms.
How Maryland Compares to Neighboring States
Recent Maryland Gambling Tax Changes
Maryland has county-level surcharges on top of state income tax. Sports betting legal since 2021.
Maryland Sports Betting Tax FAQ
How much tax do I pay on sports betting winnings in Maryland?
Maryland taxes gambling winnings at graduated brackets (varies by income) on top of federal tax (10-37%). Your total combined tax rate depends on your income level and filing status.
Is sports betting legal in Maryland?
Yes, sports betting is legal (online and retail) in Maryland. Licensed operators include FanDuel, DraftKings, BetMGM, Caesars, Fanatics. You must be physically located within Maryland borders to place bets.
Can I deduct gambling losses in Maryland?
Yes, Maryland allows gambling loss deductions following federal rules. You must itemize deductions, and losses are limited to the amount of your winnings. The 2026 OBBBA 90% cap applies.
Maryland Tax Authority
For official tax guidance specific to Maryland, contact the state tax authority:
https://www.marylandtaxes.gov/↗Calculate Your Maryland Sports Betting Taxes
Use our free calculator above to see exactly what you owe in Maryland.
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