Montana Lottery Tax Calculator - 7% State Tax

The Montana state income tax rate on lottery winnings in 2026 is 7%. Calculate your exact take-home amount from any Montana lottery game after federal and state taxes.

Montana State Income Tax: 7%

In addition to federal taxes, Montana residents owe 7% state tax on lottery winnings.

Winning Amount

Advertised Jackpot

Payout Type

Cash Value Factor (%)

60%

Your Take-Home (After All Taxes)

$168,000,000

Effective Tax Rate: 44.0% (Federal 37% + State 7%)

Lump Sum Amount

$300,000,000

(60% of advertised)

Fed Withholding

$72,000,000

24% immediate

Additional Federal Tax

$39,000,000

Tax gap (37% - 24%)

Montana State Tax

$21,000,000

7% estimated state tax rate

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Lottery tax rates vary by state. Select another state below to see its lottery tax calculator.

Showing 24 states. Use the search above to find more.

Disclaimer: All calculators on this website are provided for informational and illustrative purposes only. The results do not constitute professional advice (including legal, tax, financial, medical, or other advice). Despite careful programming, we assume no liability for the accuracy, completeness, or timeliness of the results. For matters requiring professional advice, we recommend consulting an appropriate specialist (e.g., a tax advisor, lawyer, accountant, or physician).

How Montana Lottery Taxes Work

Montana residents face federal (37%) and state (7%) taxes. IRS withholds 24%. Our calculator shows complete burden.

Montana Tax Calculation

Lump Sum = Advertised × 60%. Federal Tax = Lump Sum × 37%. State Tax = Lump Sum × 7%. Take-Home = Lump Sum - (Federal + State Tax).

Key Terms

Lump Sum

60% of advertised jackpot (cash value estimate)

Federal Withholding

24% taken by lottery immediately

Tax Gap

Difference between 24% withheld and 37% owed federally

State Tax

Montana state income tax: 7%

Montana State Income Tax Rate on Lottery Winnings 2026 Calculator

The Montana state income tax rate on lottery winnings 2026 is 7%. This calculator shows you your exact after-tax take-home from Powerball, Mega Millions, and other Montana lottery games, including both federal and state taxes.

Montana's 7% State Tax

Montana imposes 7% on lottery winnings. On $60M, that's $4.2M in state taxes. Higher than many Mountain West states.

Total Tax Burden

Federal 37% + Montana 7% = 44%. With federal gap, typically 41-44% of lump sum.

Mountain State Revenue Model

Montana Lottery generates revenue for state education and programs.

Withholding

24% federal, 37% actual, plus 7% Montana.

Lump Sum vs Annuity

7% for both. Annuity may help spread burden.

Regional Comparison

Montana's 7% is higher than Wyoming (0%) and Colorado (4%), but reasonable regionally.

Tax Planning

Consult professionals before claiming.

Montana Games

Powerball, Mega Millions, Montana games all taxed at 7%.

Montana Lottery Tax FAQ

Q:Montana's tax rate?

Flat 7% on all lottery prizes.

Q:Total tax?

Federal 37% + Montana 7% = 44%, typically 41-44% total.

Q:Lump sum vs annuity?

Both taxed at 7%.

Q:Reduce it?

No, mandatory 7% withholding.

Q:Move after?

If claimed in Montana, 7% applies to that win.

Q:Regional comparison?

Higher than Wyoming (0%) but reasonable for region.

Q:Revenue?

Montana lottery supports state education.