Montana Lottery
Montana Lottery Tax Calculator
Montana withholds 5.9% from lottery prizes over $5,000 even though its 2026 top rate is 5.65% — one of the few states where a large winner is usually over-withheld for state tax.
Verified · tax year 2026
Montana prize — results
Take-home
62.4% kept of $1,000,000
Annuity · 30 payments
Year 1 — → year 30 —
| Cash received | $1,000,000 |
|---|---|
| Federal income tax | −$320,000 |
| Tax to Montana | $0 |
| Montana tax | −$56,049 |
| Local income tax | $0 |
| You keep | $623,951 |
| Federal withholding (24%) | −$240,000 |
|---|---|
| State withholding | −$59,000 |
| Check you receive | $701,000 |
| Still owed when you file | $77,049 |
Data: IRS Rev. Proc. 2025-32 · state agencies, verified · what this leaves out
Over-withheld, then refunded
Montana’s temporary rate section, which ends December 31, 2026, taxes the first $47,500 of a single filer’s taxable income at 4.7% and the rest at 5.65% (joint filers $95,000; heads of household $71,250). A $1,000,000 prize produces $56,049 of Montana tax, but the Lottery withholds $59,000 at 5.9%. The excess comes back as a refund on the Montana return.
2027 brings lower rates — already enacted
The version of MCA 15-30-2103 effective January 1, 2027 drops the top rate to 5.4% and widens the 4.7% band to $65,000 single, $97,500 head of household and $130,000 joint. An annuity winner will see those rates on every payment from 2027 on. Montana law also allows lottery winners to remain anonymous.
Montana at a glance
| State income tax on winnings | Up to 5.65% |
|---|---|
| Rate table used | 2026 (MCA 15-30-2103, version ending Dec. 31, 2026) |
| Lottery | Montana Lottery |
| State withholding at claim | 5.9% over $5,000 |
| Scheduled change | From January 1, 2027 the top rate falls to 5.4% and the 4.7% band widens to $65,000 single / $130,000 joint. |
What Montana winners should know
- Montana withholds 5.9% although its 2026 top rate is 5.65%, so a large Montana prize is usually over-withheld and part comes back as a refund.
- Montana law lets lottery winners remain anonymous.
Montana sources
- MCA 15-30-2103 — Rate of tax (2025 MCA, temporary and effective-2027 versions) — Montana Legislature
- Claim Your Prize — Montana Lottery †
Agency: Montana Department of Revenue. † read through a browser session (why). How the math works.
Neighboring states
Idaho · North Dakota · South Dakota · Wyoming