Montana gambling winnings tax calculator
Montana taxes gambling winnings as ordinary income at graduated rates from 4.7% to 5.65%.
Updated · 2026 tax rules · How we calculate
You keep
$7,919
Cash at payout
$7,600
Total tax
$2,081
Over-withheld
$319
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $531
- Over-withheld
- $319
- You keep
- $7,919
$10,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
Montana taxes gambling winnings as ordinary income.
More was withheld than these winnings add to your tax. The difference reduces what you owe on the rest of your return, or comes back as a refund.
$10,000 minus $2,081 in federal and state tax: an effective rate of 20.8%.
An estimate for 2026, not tax advice. It treats this win as your only gambling income for the year and leaves out local income taxes. Nothing you enter leaves your browser.
How Montana taxes gambling winnings
- State income tax
- Montana taxes gambling winnings as ordinary income at graduated rates from 4.7% to 5.65%.[1]
- Gambling losses
- Montana starts from federal taxable income, so gambling losses count only if you itemize federally, with the federal 90% limit.[2]
- Withholding
- The Montana Lottery withholds state tax at Montana's top rate from prizes over $5,000. Its site still says 5.9%, while the 2026 top rate is 5.65%, so the rate isn't confirmed. No other payer is required to withhold.[3]Unverified
- Nonresidents
- Nonresidents owe Montana tax on Montana lottery winnings and other income attributable to Montana, reported on Form 2.[2]
- Tax paid to other states
- Residents can claim a nonrefundable credit for income tax paid to another state on income from that state, unless that state already credited the Montana tax.[4]
- Legal gambling
- Sports betting: legal in person only. State lottery: yes. Casinos: yes. Online casino: not legal.[5]Unverified
Also worth knowing
- Since tax year 2024 (SB 399), Montana starts from federal taxable income, so federal itemized gambling-loss deductions carry over automatically; Montana has no separate gambling-loss rule.[4]
- Sports betting in Montana is a state monopoly run by the Montana Lottery (Sports Bet Montana) through licensed bars and casinos.[5]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Montana.
| Game | Won | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| Sports betting | $10,000 | $2,400 | $1,550 | $531 | $7,919 |
| Casino and slots | $5,000 | $0 | $600 | $248 | $4,152 |
| Table games | $5,000 | $0 | $600 | $248 | $4,152 |
| Poker tournaments | $20,000 | $0 | $3,750 | $1,096 | $15,154 |
| Lottery | $50,000 | $12,000 | $10,350 | $2,791 | $36,859 |
| Daily fantasy sports | $5,000 | $0 | $600 | $248 | $4,152 |
| Horse racing | $8,000 | $1,920 | $1,110 | $418 | $6,472 |
Questions
- Does Montana tax gambling winnings?
- Yes, at graduated rates from 4.7% to 5.65%.[1]
- Can you deduct gambling losses in Montana?
- Montana starts from federal taxable income, so gambling losses count only if you itemize federally, with the federal 90% limit.[2]
- Does Montana withhold tax from gambling winnings?
- The Montana Lottery withholds state tax at Montana's top rate from prizes over $5,000. Its site still says 5.9%, while the 2026 top rate is 5.65%, so the rate isn't confirmed. No other payer is required to withhold.[3]Unverified
- Do nonresidents pay Montana tax on gambling winnings?
- Nonresidents owe Montana tax on Montana lottery winnings and other income attributable to Montana, reported on Form 2.[2]
Montana by game
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] MCA 15-30-2101 Definitions · checked September 22, 2026
- [3] MCA 15-30-2522 Withholding of lottery winnings · checked September 22, 2026
- [4] Montana DOR 2025 Form 2 Instructions · checked September 22, 2026
- [5] Sports Bet Montana · checked September 22, 2026