Sports betting winnings tax in Montana
Montana taxes sports betting 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.
The rules
- Montana tax
- Montana taxes sports betting winnings as ordinary income at graduated rates from 4.7% to 5.65%.[1]
- Federal tax form
- Sports betting winnings are reported on a W-2G when they are $2,000 or more (after subtracting the wager) and at least 300 times the wager. The threshold was $600 before 2026.[2]
- Federal withholding
- 24% is withheld from sports betting winnings of more than $5,000, but only when the win is also at least 300 times the wager.[2]
- Montana withholding
- No Montana withholding requirement for sports betting winnings. Tax is due when you file.[5]Unverified
- Gambling losses
- Montana starts from federal taxable income, so gambling losses count only if you itemize federally, with the federal 90% limit.[6]
- Visitors
- Montana taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[6]
- Where to play
- Sports betting in Montana: legal in person only. Winnings from a bet placed in another state are taxable here all the same.[7]Unverified
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Montana.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $71 | $1,250 |
| $2,000 | No | $0 | $240 | $94 | $1,666 |
| $10,000 | Yes | $2,400 | $1,550 | $531 | $7,919 |
| $100,000 | Yes | $24,000 | $22,114 | $5,616 | $72,270 |
Assumes a $25 stake on this bet, so the 300x test is met at every amount shown.
Questions
- How much is Montana tax on sports betting winnings?
- Montana taxes sports betting winnings as ordinary income at graduated rates from 4.7% to 5.65%.[1]
- Does Montana withhold tax from sports betting winnings?
- Montana has no withholding requirement for sports betting winnings. Tax is due when you file.[5]Unverified
- Do visitors pay Montana tax on sports betting winnings?
- Montana taxes nonresidents on sports betting winnings won there, so visitors may need to file a nonresident return.[6]
More for Montana
All of Montana's gambling tax rules · Sports betting in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
- [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [5] MCA 15-30-2522 Withholding of lottery winnings · checked September 22, 2026
- [6] MCA 15-30-2101 Definitions · checked September 22, 2026
- [7] Sports Bet Montana · checked September 22, 2026