Are Canadians taxed on lottery prizes?

Reply #9

KY Floyd — Wed, 17 Dec 2008 06:56:38 GMT

Any taxable lottery winnings will be treated as ordinary income, and taxed at whatever rate your total taxable income results in. For any sizable jackpot you can plan to pay the highest rate on the vast majority of it. Right now, NY's top bracket is 6.85%. If you buy awinning ticket in another state, you may have to pay tax in that state, at their rate. If you buy a PB ticket in VT, for example, their top rate is about 9.5%.

Reply #8

myturn — Tue, 16 Dec 2008 07:58:24 GMT

In the UK 12% of lottery sales goes to the Government in Lottery duty. But if you win 20 million pounds, you get the full 20 million, no taxes, no annuity nonsense.

Lottery duty was set at 12 per cent, which was intended to ensure the Lottery would be revenue neutral , so that the Government was compensated for revenue lost from expenditure diverted from other goods and services that are taxable to the Lottery

The Treasury conceded that it was difficult to calculate the exact level of... [ More ]

Reply #7

dvdiva — Wed, 10 Dec 2008 04:35:37 GMT

Sadly you better remember where and when you bought the ticket or you are SOL.

Only the US and Switzerland tax lottery prizes. Something that I think they should do away with on state sponsored games.

Reply #6

MaddMike51 — Tue, 09 Dec 2008 18:47:12 GMT

Show me an American politician that claims to hate taxes and I'll show you an American politician that is running for office and is lieing through his teeth.

Reply #5

jessicalelle — Tue, 09 Dec 2008 18:14:00 GMT

In the USA it depends in which state you are playing? Whats the lottery tax in NY

Reply #4

MillionsWanted — Tue, 09 Dec 2008 16:25:06 GMT

In Norway there's no taxes for playing lotteries and you can stay anonymous. 50% of the money spent goes back to the players as prizes.

As far as I know lotteries in USA gives 50% back to the players AND charge taxes on lottery winnings in addition.

Has always thought of it as strange that in USA where the citizens and politicians hate taxes so much they charge taxes on lottery winnings.

Reply #3

crystaltips — Tue, 09 Dec 2008 16:17:17 GMT

No lottery is tax free. You pay one way or the other, whether you pay before or after.

Personally, I like the way we do things in the UK. You pay your tax when you buy the ticket. Then all prizes appear to be tax free but actually aren't. I prefer this to the way the U.S. Lotteries do things and claw all the tax back at the end, so you actually end up getting less than the advertised prize. That would slightly annoy me.

:D

Reply #2

Amazing Grace — Tue, 09 Dec 2008 15:01:58 GMT

No taxes on Canadian lotteries,

But no claiming the tickets you buy also.

Reply #1

savagegoose — Tue, 09 Dec 2008 14:52:19 GMT

not quite right, the jackpot isnt taxed here in Australia, but there is a tax. You see our gov isnt too keen on waiting around for jackpots to be won before collecting its tax. So there is a tax paid by every player at the time the ticket is purchased.

so no winnings are taxed , but its not tax free.

Are Canadians taxed on lottery prizes?

myturn — Tue, 09 Dec 2008 08:16:22 GMT

I know that Americans are taxed on lottery prizes over $600. In the UK and Australia all lottery prizes are tax free. What is the situation in Canada