How much tax does Montana take from lottery winnings?

Montana withholds 5.65% (Tied by law to the top income-tax rate, 5.65% for 2026). That is withholding, paid on your behalf before the cheque is written; what you finally owe the state is settled on your return.

Do I pay federal tax on a Montana lottery prize?

Yes. The lottery withholds 24% for the IRS when the prize, less the ticket, is over $5,000, and reports prizes of $2,000 or more on Form W-2G. A large prize is taxed at up to 37% at filing, so the 24% is rarely the end of it: on a $1,000,000 prize a single filer earning $50,000 owes about $334,680 more federally, $94,680 more than was withheld.

How much of a $10,000 lottery prize do you keep in Montana?

The cheque is $7,035: $2,400 withheld federally and $565 for Montana. After the federal return, a single filer earning $50,000 keeps about $8,235.

How much would a Powerball jackpot winner keep in Montana?

On the $716 million jackpot for the October 28, 2026 drawing, a single winner taking the $307.2 million cash option keeps about $176 million after federal tax at filing and Montana's 5.65%. That ranks 33 of 46 lotteries. Every state, side by side.

Where do I claim a big prize in Montana?

At Montana Lottery, which must pay a prize on a ticket it sold; a ticket bought in Montana is claimed there whatever state you live in. montanalottery.com lists its claim centres and deadlines.

Montana Lottery Taxes

Montana withholds 5.65% from lottery prizes (Tied by law to the top income-tax rate, 5.65% for 2026), on top of the federal 24% on prizes over $5,000. A Powerball jackpot winner taking the cash here keeps about $176 million of $307.2 million.

Source for Montana's rate: MCA 15-30-2522 (mca.legmt.gov), checked October 18, 2026.

What a prize is worth in Montana

Three prizes, as the cheque is written and after the federal return. The return is a single filer earning $50,000 besides the prize, with the 2026 brackets and standard deduction; other income changes the bill, which is what the calculator is for. What you finally owe Montana is worked out on its own return at its own income-tax rates, so the state line here is the withholding.

$1,000 prize

$880

kept after the federal return

Federal withheld: $0
Montana withheld: $0
Cheque: $1,000
Federal tax on it: $120

$10,000 prize

$8,235

kept after the federal return

Federal withheld: $2,400
Montana withheld: $565
Cheque: $7,035
Federal tax on it: $1,200

$1,000,000 prize

$608,820

kept after the federal return

Federal withheld: $240,000
Montana withheld: $56,500
Cheque: $703,500
Federal tax on it: $334,680

A $1,000 prize has nothing withheld federally and is under the $2,000 at which the lottery reports it on Form W-2G, but it is still taxable income. Montana starts withholding on prizes over $5,000. The withholding is a deposit against the federal bill, not the bill: on $1,000,000 the 24% falls $94,680 short, and on $1,000, with nothing withheld, about $120 is still owed.

The Powerball jackpot after Montana tax

The advertised Powerball jackpot for the October 28, 2026 drawing is $716 million, or $307.2 million as a lump sum. A single winner taking the cash in Montana:

Cheque

$216.1 million

after 24% federal and 5.65% state withheld

Kept after filing

$176.2 million

top federal rate 37%

Annuity, first year

$6.2 million

after tax, 30 payments rising 5% a year

Rank

33 of 46

lotteries, by what a winner keeps

What the same jackpot leaves a winner in every state · Montana Powerball: add-ons and what a ticket is worth here

The federal rules, the same in every state

24% is withheld for the IRS when a prize, less the ticket, is over $5,000.
A prize of $2,000 or more (and at least 300 times the ticket) is reported on Form W-2G. The threshold was $600 until 2025.
Without a Social Security number on file, 24% backup withholding applies from the reporting threshold. A winner who is not a US resident has 30% withheld.
Every prize is taxable income, reported or not. A jackpot is taxed at up to 37% at filing.

Source: IRS, Instructions for Forms W-2G and 5754 (2026).

Work out your own number

The lottery tax calculator takes any prize, lump sum or annuity, filing status and state, with Montana's rate already in it. Claiming a prize, and the tax that comes with it covers claim deadlines and what to do first.

Montana lottery tax questions

How much tax does Montana take from lottery winnings?: Montana withholds 5.65% (Tied by law to the top income-tax rate, 5.65% for 2026). That is withholding, paid on your behalf before the cheque is written; what you finally owe the state is settled on your return.
Do I pay federal tax on a Montana lottery prize?: Yes. The lottery withholds 24% for the IRS when the prize, less the ticket, is over $5,000, and reports prizes of $2,000 or more on Form W-2G. A large prize is taxed at up to 37% at filing, so the 24% is rarely the end of it: on a $1,000,000 prize a single filer earning $50,000 owes about $334,680 more federally, $94,680 more than was withheld.
How much of a $10,000 lottery prize do you keep in Montana?: The cheque is $7,035: $2,400 withheld federally and $565 for Montana. After the federal return, a single filer earning $50,000 keeps about $8,235.
How much would a Powerball jackpot winner keep in Montana?: On the $716 million jackpot for the October 28, 2026 drawing, a single winner taking the $307.2 million cash option keeps about $176 million after federal tax at filing and Montana's 5.65%. That ranks 33 of 46 lotteries. Every state, side by side.
Where do I claim a big prize in Montana?: At Montana Lottery, which must pay a prize on a ticket it sold; a ticket bought in Montana is claimed there whatever state you live in. montanalottery.com lists its claim centres and deadlines.

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