Madonna is still the Queen of Pop after raking in $125m this year.
The 55 year-old, who also trumped Rihanna and Katy Perry, earned a large chunk of her earnings thanks going to the success of her latest tour, which reportedly grossed $305 million.
Gaga came in second place with $80 million, meaning the 'Material Girl' was $45 million in front of her closest competition.
However, it's unlikely Gaga will show any disappointment at not beating Madge as she recently told Attitude magazine about their feud: "There's this thing with some people that I'm a threat to the throne. I don't want your f**king throne, no thanks, I have my own.
"I actually don't want a throne at all, because I don't view myself as a queen, I view myself as one of my fans," she added.
The pair's feud began after Madonna claimed Lady Gaga had copied her song 'Express Yourself' in 2011's 'Born This Way', even performing a mash-up of the two hits on her MDNA tour last year.
See the complete list of the highest earning musicians at Forbes.com.