Why are lottery winnings not taxed in Canada?

Lottery winnings aren’t taxable in Canada because the country views them as "windfalls" as opposed to income generated. They look at a lottery win just like an inheritance or gift money, and just like gifts and inheritances and other unexpected payments, it isn't subject to taxation.

Do you get the full amount when you win the lottery in Canada?

Yes, you will get the full amount of money that you’ve won while playing the lottery when you hit the jackpot in Canada. You’ll only have to devote a portion of your lottery winnings to tax obligations if you’re a pro gambler or if you’ve used lottery winnings to earn interest or profits from investments.

Do you have to declare lottery winnings in Canada?

No, Canadians don’t have to declare lottery winnings in Canada when doing taxes unless you work as a pro gambler or have earned interest by keeping lottery winnings in an interest-bearing savings account. You might also need to declare them if you use lottery winnings to buy stocks.

Do Canadian lottery winners have to go public?

Yes, those who win the lottery in Canada usually have to go public when they turn in winning tickets. The rush of excitement surrounding their win is great publicity for Lotto Max or 649 drawings. People can only remain anonymous in rare instances in which revealing their identities would put them in harm's way.

Can a tourist win the lottery in Canada?

Yes, a tourist can win the lottery in Canada and they won't have lottery winnings taxed in Canada. But unlike when a Canadian wins the lottery, tourists need to check on the tax laws in their respective countries to ensure they pay the proper taxes on lottery winnings.

How long do you have to claim lottery winnings in Canada?

You have about a year to claim your prize when you win the lottery in Canada in most cases. Check the expiration dates on lottery tickets to make sure you claim winnings before they expire on you. It is rare for someone to hold onto a winning lottery ticket for more than a year.

Are lottery prizes taxed in Canada?

Q: Is gambling taxed in Canada?

No, gambling isn’t taxed in Canada. The only exceptions to this will be if you’re considered a professional gambler or if you use gambling winnings to earn income on interest or investments. In these cases, you may be taxed on gambling winnings in Canada after you're paid interest or sell the investments.

Author: Dmitry Rogalchuk

Updated:06.01.2025

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In 2024, Canada proudly commemorates half a century since establishing its first national lottery, known as the Olympic lottery.took place in 1974 This lottery successfully generated over $230 million in funds for the Montreal Olympic Games, offering a groundbreaking tax-free jackpot of $1 million, which was the largest ever at that time.

Canada remains a haven for lottery enthusiasts, with winners usually exempt from taxes on their prizes, similar to how funds from casino winnings and sports betting are treated. Read on to grasp the specific circumstances under which lottery winnings in Canada may become taxable.

What to expect if you win the lottery

Back in 1974, only a single national lottery was available in Canada, whereas in 2025, players can choose from three national games: Lotto 6/49, Lotto Max, and Daily Grand.

If you're fortunate enough to win in one of these lotteries, knowing the proper steps is vital – start by signing your ticket to verify ownership and make plans to claim your winnings before the deadline.1 in 33,294,800 Winnings are generally processed within five business days. Your decisions on spending, saving, or investing that money could influence its tax implications in Canada.

What are the tax obligations regarding lottery winnings in Canada?

Winning the lottery in the U.S. can quickly lead to confusion over the considerable taxes that will be deducted from your earnings, as they are subject to substantial taxation.

The IRS requires you to pay federal taxes and often withholds an additional 12% for state taxes.25% of your lottery prize taken Conversely, in Canada, as long as you're participating in the lottery for fun and not as a professional gambler, you typically won't face taxation on your lottery earnings. There are only a few scenarios in which Canadian winners might have to pay taxes. Let’s examine some situations where lottery winnings are taxable.

About two-thirds of adults in Canada have acknowledged gambling at least once in the past year. Most are casual players and won’t need to fret about taxes on their lottery winnings or online gaming successes.won't have to set aside money On the other hand, some professional gamblers do exist in the landscape, and they are required to pay taxes on any lottery prizes or other earnings. A professional gambler is characterized as someone who relies on gambling for taxable income to sustain themselves. They often incur tax rates ranging from 15% to 33%.

Professional gambler winnings tax

If you identify as a professional gambler, it’s wise to explore how to deduct expenses to lessen your tax obligations with the Canada Revenue Agency (CRA). It's crucial to consult with a financial advisor regarding potential tax deductions. Tax obligations associated with money won through lotteries.

Once you’ve won the lottery in Canada, the impulse to secure your newfound wealth in a savings account may arise. This is a sensible approach; however, be aware that interest accrued in a savings account may be subject to taxation.

You might also incur taxes by investing your lottery winnings in stocks or mutual funds, as any profits generated could result in capital gains taxes. Starting a business with your winnings may also create tax liabilities if you generate income.

The specific tax implications associated with interest earned from lottery wins or additional income from investing lottery funds will vary based on the province in which you reside.

If you do face taxes on your winnings or earnings derived from gaming or sports betting, the rate will differ from one province to another. Refer to a detailed chart to find out what taxes professional gamblers and those who invest their lottery payouts might anticipate.

Tax Legislation Comparison Table by Province.

For the first C$142,292, the tax rate is set at 10%. In regions such as Calgary and parts of Alberta, incomes exceeding C$341,502 are taxed at a maximum rate of 15%.

Tax laws by province

Tax starts at a rate of 5.06% for income over C$45,654, increasing to as high as 20.5% for winnings that exceed C$240,716. online casinos in Canada For incomes up to C$36,842, the tax rate is 10.8%, whereas it rises to 17.4% for earnings beyond C$79,625.

Tax for the first C$47,715 is 9.4%, while amounts over C$176,756 incur a tax rate of 19.5%.
Province	Tax
Alberta	An initial tax rate of 8.7% applies to the first C$41,457, but for those earning over C$1,059,000, the tax rate jumps to 21.8%.
British Columbia	Earnings of up to C$29,590 are taxed at 8.79%, and income exceeding C$150,000 faces a tax rate of 21%.
Manitoba	Tax rates range from 5.05% to 13.16%, varying by income brackets.
New Brunswick	With a tax of 9.8% on the first C$31,984 and 16.7% for sums over $63,969.
Newfoundland and Labrador	Tax is set at 10.50% for income up to C$49,720 and 14.5% for amounts exceeding $142,058.
Nova Scotia	Numerous remarkable lottery wins have occurred in Canada since 1974. Having discussed the conditions under which lottery winnings are taxable in Canada, let’s highlight five of the most significant lottery wins in the nation’s history.
Ontario	In early 2020, credit risk manager Adlin Lewis achieved the largest jackpot ever recorded in Canada’s lottery.
Prince Edward Island	Noel Patricio, who works as a housekeeper, claimed the record-breaking 6/49 lottery prize in December 2023.
Saskatchewan	However, he mentioned that he has no intentions of leaving his job.
Quebec	The tax is 14% for income up to C$49,275,

Lottery winners in Canada

Merel Chiasson, a fisherman, delayed claiming his jackpot-winning 6/49 ticket for a full year, only doing so in March 2024. He presented the ticket to claim his prize.

The $70 million Lotto Max lottery:

Bon Truong, a landscaper, consistently played the same numbers for three decades and eventually won the grand prize. He spent ten months contemplating how to manage his winnings.walked away with $70 million .
The $68 million Lotto 6/49 lottery:

Juliette Lamour, a university student, won one of the largest 6/49 lottery prizes on her very first attempt at playing. At just 18 years old, she hit the jackpot.earned $68 million Winning the lottery is not always a cause for concern in many countries, but in Canada, winners keep their entire jackpot without issue. You’ll only face taxes if you are a professional gambler or if you generate income from investments using your lottery winnings.
The $64 million Lotto 6/49 lottery:

For those looking to save their lottery winnings without tax worries, consider establishing a tax-free savings account (TFSA). Opening a TFSA at a bank or financial institution allows you to save lottery funds without tax implications on the interest accrued. Explore options for a TFSA.win a whopping $64 million .
The $60 million Lotto Max lottery:

You might also think about creating a Registered Retirement Savings Plan (RRSP) or a Non-registered Savings Plan (NRSP) for your financial security. Many individuals use these avenues to optimize their financial planning.pocketed $60 million In Canada, lottery earnings are generally tax-free , providing a major benefit to those who win. Differing from the U.S., where winnings are heavily taxed, Canadian winners retain the full amount unless they are professional gamblers . However, should these winnings be invested or create further earnings through interest or capital gains, provincial taxes may apply. For those interested in joining the fun, there are plentiful options for engaging in online lotteries through reputable gaming platforms, chosen meticulously by our
The $48 million Lotto 6/49 lottery:

to guarantee a safe and satisfying experience.scored $48 million .

Tax free lottery wins

With over five years of experience in the iGaming industry, Dmitry Rogalchuk oversees a content team at Cheapnbajerseyshornets, ensuring each article on the Cheapnbajerseyshornets site is both informative and compelling for readers.

Holding a Master of Business Administration - MBA, specializing in Digital Marketing and Business Analytics.qualify to open a TFSA .

No, gambling isn’t subject to taxes in Canada. The sole exceptions occur if you’re recognized as a professional gambler or if you profit from your winnings via interest or investments. In such cases, you may owe taxes on gambling winnings in Canada after receiving interest or liquidating your investments.

Summary

What is the reason for the absence of taxation on lottery winnings in Canada? trusted online casino reviews Lottery winnings are not taxed in Canada because such earnings are classified as 'windfalls' rather than generated income. The government treats a lottery win similarly to an inheritance or gift, and like these other unexpected financial gains, it remains free from taxation.

Will you receive the total prize amount upon winning the lottery in Canada?

Dmitry Rogalchuk

5.0

Former Head of Content

The University of British Columbia

Indeed, in Canada, you will receive the full amount of your lottery winnings if you hit the jackpot. The only situation where a portion might go toward taxes is if you're a professional gambler or if you've utilized your winnings to earn income through investments.

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Gambling taxes FAQ

Is gambling taxed in Canada?

Is it necessary to declare lottery winnings in Canada?

No, Canadians are not required to report lottery winnings when filing taxes unless they are professional gamblers or have earned interest from keeping their winnings in an interest-bearing account. You may also have to declare your winnings if they have been used to purchase stocks.

Are Canadian lottery winners required to go public with their identities?

Yes, most lottery winners in Canada are expected to go public when they claim their winning tickets. The excitement surrounding their victory serves as excellent exposure for Lotto Max or 649 draws. Remaining anonymous is rarely allowed, only in exceptional situations where revealing one’s identity may pose a risk.

Can tourists participate in the lottery in Canada?

Absolutely, tourists are eligible to win the lottery in Canada, and their winnings will not be taxed here. However, they should consult the tax regulations of their home countries to ensure proper tax compliance on any lottery earnings.

How long do you have to claim your lottery winnings in Canada?

Understanding the taxation of lottery winnings in Canada ᐉ Everything about taxable earnings

Are lottery prizes in Canada subject to taxes? ✅ What taxes do Canadians face when they win the big jackpot? ✅ A comprehensive exploration of the tax status of winnings in Canada

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Is there a tax on lottery winnings in Canada?

Graphic depicting lottery taxation in Canada