How Much Tax Do You Pay on $50 Million Jackpot Winning?

After a $50 million Jackpot was won in Vancouver, people are curious as to how much tax do you pay for that Lotto winning?

The winners should thank their luck that they have won the Jackpot in Canada.

If they had won the Lotto in USA, they would have to pay 38% or more of their winning to IRS.

Since they have won it in Vancouver and are not U.S. citizens, their Tax liability to the Canada Revenue Agency is, “0”.

Lotto or any other lottery winning is not taxable in Canada.

As per Canadian Income Tax Act “Income from a source” of employment, business or investment is taxable income. Since lottery winning is not a regular source of income, not a single penny of the winning is Taxable under Canadian Income Tax Act.

Unfortunately it is a different situation for U.S. citizens or lottery winning in USA.

If you are a U.S. citizen, it does not matter where in the world you win a lottery; you must report and pay income tax on your lottery winning.

If you are not a U.S. citizen and you win lottery/gambling in U.S.A. 30% to 38% of your winning will be taken out and sent to IRS, before you are given the winning proceeds. You must file a Non-Resident Income Tax Return, to get the tax deducted at source back. How much you will get back, depends your foreign residential status and any tax treaty agreement between the USA and your country of residence.

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