Are Lottery Winnings Taxed in Canada?

We’ve all heard about those insane lottery jackpots around the world. Whether it’s a billion-dollar US Powerball draw or million-euro jackpots from EuroMillions, there’s really no reason not to try your luck! You might be thinking; how can I play? If you’re in Canada, there aren’t many lotteries to play and the prizes are nowhere near as high as those in the US or Europe!

Worry not–that’s why the online lottery exists!

Are lottery winnings taxed in Canada?

Thanks to the online lottery, it’s possible to play some of the largest jackpots that you’ll ever see. The lottery has never been so easy to play – simply pick your numbers, play and you’ll be emailed you if you’ve won something!

Unfortunately, as with most things in life, we’re always going to get taxed. Do you also need to pay taxes on winnings in Canada, and if so, what are the rules around it and how is each region affected?

Do you need to pay taxes on winnings in Canada?

Luckily, you don’t need to worry so much about it. Lottery in Canada has some fairly lax rules when it comes to any winning.

According to the Canada Revenue Agency’s windfall rules, you don’t actually have to report the winnings nor do you have to pay tax! This means that if you do win a big jackpot, you don’t even need to tell the authorities about it and you can keep every single penny to yourself. However, there are some exceptions to this rule.

Are lottery winnings taxed in Canada?

For starters, if your winnings earn interest, such as if you use them to invest in a business or even if you put them into a savings account, then those interest amounts could be subject to taxation. Additionally, if your workplace hosts a lottery and you win, then those winnings do count as income which means they’re taxable. Lastly, if you win a commission for selling winning tickets, such as if you’re a store owner that offers lottery tickets, then your personal winnings are considered income and must be reported.

However, if you’re in Canada and you’ve just won the lottery, then you don’t need to report it and it isn’t taxed, even if you’ve won a billion-dollar jackpot! So play away, buy online lottery entries in Canada and don’t worry about a chunk of your winnings going to the tax man!

Play the lottery online for your chance to win

So now that we’ve explained that you do not need to pay taxes on your winnings, you’re free to play as many online lotteries as you want. Simply create an account, pick your numbers (or let the computer randomise them) and then wait for the draw to happen. If you’ve won, then you’ll get an email from our Customer Support Team about it. It couldn’t be any simpler to play the lottery online. Thanks to all of the advances of modern technology, you can play the lotteries from all over the world no matter where you are – even in Canada!



This post was written by
Jason L - who has written 2687 articles
Comments

Posted by Kanhu Charan (1/08/2019)

i would suggest when u win a lump sump its better to inform the authority of the state


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