Withholding for Gambling Winnings

Effective January 1, 2008, a payor must withhold tax at a rate of 8.5 percent on a resident's winnings derived from wagering. For a nonresident, the withholding rate is 6.75 percent.

Income tax will automatically be withheld from Maryland Lottery winnings that total more than $5,000.

In addition, income tax will automatically be withheld from winnings from pari-mutuel wagering (horseracing) if the proceeds from the wager exceed $5,000 and are at least 300 times as large as the amount of the original wager.