David Bowie and Prince are among the new entrants on the list but the earnings of both are dwarfed by those of the late pop icon.
Michael Jackson may have been dead almost eight years but this has not dented the rate at which he is making money.
Jackson, who died in 2009 at the age of 50, made $825m (£615m), according to Forbes’ top-earning dead celebrities list for 2016.
The late pop singer has topped the list every year since his death, apart from coming second to Elizabeth Taylor in 2012.
The growth in his fortune was largely due to the $750m (£616m) sale of his half in the Sony-ATV Music Publishing catalogue.
Second on the list was Peanuts creator and cartoonist Charles M Schulz, who earned $48m (£39.5m) in the last year, followed by late golfer Arnold Palmer, with $40m (£33m), most of which was earned while he was alive – he died just days before the Forbes cut-off date.
Prince and David Bowie, who died in the first half of this year, were new entrants, with Prince at number five with $25m (£20.5m) and Bowie at 11th place on $10.5m (£8.6m).
When compiling the list, Forbes estimated the pre-tax income of the celebrities between 1 October 2015 and 1 October 2016 from a variety of sourcing, including estate experts, before taking away expenses for agents, managers and lawyers.
:: The full list of top-earning celebrities for 2016
1. Michael Jackson – $825m (£615m)
2. Charles M Schulz – $48m (39.5m)
3. Arnold Palmer – $40m (£33m)
4. Elvis Presley – $27m (£22m)
5. Prince – $25m (£20.5m)
6. Bob Marley – $21m (£17.2m)
7. Theodor “Dr. Seuss” Geisel – $20m (£16.4m)
8. John Lennon – $12m (£9.8m)
9. Albert Einstein – $11.5m (£9.4m)
10. Bettie Page – $11m (£9.0)
11. David Bowie – $10.5m (£8.6m)
12. Steve McQueen – $9m (£7.4m)
13. Elizabeth Taylor – $8m (£6.5m)