18:20
melted thoughts
The pop star with beautiful hats - real name Stefani Germanotta - moved four positions up from last year to knock Winfrey, 2010's chart-topper, down to two.
Gaga's ranking comprises of her earnings over the past 12 months - an estimated $90m (£55.6m).
The ranking is also based on her 32 million Facebook fans and 10 million Twitter followers.
"Lady Gaga beat Oprah this year because of her social media power," said Forbes editor Dorothy Pomerantz.
She also added that, "She's the best example of how celebrities will need to manage their careers in the coming years."
Canadian pop star Justin Bieber makes his first appearance on the list in third place, his estimated earnings are $53m (£32.7m).
Irish rockers U2 are fourth in the countdown with estimated of $195m (£120.5m) (pre-tax income between 1 May 2010 and 1 May 2011.)
Sir Elton John is at five. He is the highest ranked Briton on the list. This measures celebrity "power" by entertainment-related earnings, media visibility and social media popularity.
He is joined in the Top 10 by Simon Cowell, whose role as music producer and X Factor judge gifts him ninth place in the countdown.
Lady Gaga's latest achievement coincides with the grand release of her latest record, Born This Way.
All 14 tracks from the album were streamed online in Europe this week ahead of its official release on Monday.
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