Canada Tax on Lottery Winnings

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In Canada, lottery winnings are generally not subject to taxation. This applies to all types of lottery prizes, including those from national and provincial lotteries like Lotto 6/49 and Lotto Max. The Canada Revenue Agency （CRA） does not consider lottery winnings as taxable income, so winners can keep their entire prize without paying any income tax on it.

However, there are some exceptions to this rule. If you win a lottery prize as part of a business or professional activity, the winnings may be taxable. Additionally, any interest or investment income generated from the lottery winnings is subject to taxation. It is important to consult with a tax professional to understand your specific situation.

For non-residents of Canada who win a Canadian lottery, the tax treatment may differ. Generally, non-residents are also not taxed on lottery winnings in Canada, but they should check the tax laws in their own country to see if the winnings are taxable there.