Lottery Taxes Around the World: How Much Do Winners Really Keep?

Winning the lottery is a fantasy we’ve all entertained. The joy of seeing your numbers pop up is often followed by another thought—how much of that money will I actually get to keep? While most players dream of yachts and luxury vacations, governments around the world are dreaming about their cut. The reality is that depending on where you live (or buy your ticket), the answer could range from 100% to barely half.

Here’s how lottery taxation works across the globe and how much winners really pocket after the celebrations.

United States: Big Wins Come With Big Deductions

The U.S. offers some of the largest jackpots in the world through games like Powerball and Mega Millions. But Uncle Sam—and often individual states—takes a sizable cut.

The federal government withholds 24% of lottery winnings right off the top. However, most winners fall into the highest tax bracket, which means the actual federal tax can go up to 37%.

Then comes state tax. Some states—like Florida, Texas, Washington, and South Dakota—have no additional tax. But others, such as New York or Maryland, impose state-level taxes of up to 8.82% or more.

Example:
– Jackpot: $100 million (lump sum $60 million)
– Federal tax (37%): $22.2 million
– State tax (New York, 8.82%): $5.29 million
– Take-home: ~$32.5 million

Annuity options, taken over 30 years, can reduce annual tax exposure—but many still opt for the lump sum.

United Kingdom: No Tax, No Worries

In the UK, winnings from UK Lotto and EuroMillions are 100% tax-free. Whether you win £500 or £100 million, every penny is yours.

However, if you gift or invest your winnings, taxes may apply later. Inheritance tax (40%) can also come into play when large gifts are made or passed down without proper planning.

Germany: No Tax, But Watch Future Earnings

Germany treats lottery winnings as tax-free, including major national games and international jackpots purchased online. The only exception is taxation on any interest or investment returns made from your winnings.

For instance, if you win €10 million and invest it in real estate or stocks, profits from those assets will be taxed—but the prize itself is safe.

France and Spain: Generous Thresholds, Modest Cuts

France allows lottery winners to keep their prizes tax-free. This includes EuroMillions winnings if the ticket is purchased in France.

Spain, on the other hand, imposes a 20% tax on lottery prizes exceeding €40,000. So, if you win €100,000 in El Gordo:

– First €40,000: tax-free
– Taxable: €60,000
– Tax: €12,000
– Take-home: €88,000

It’s still generous, but high-stakes wins do feel the impact.

Australia: Full Prize, No Deductions

Australia offers tax-free winnings across all major games, including Oz Lotto, Powerball Australia, and Set for Life.

Even if you win AU$50 million, the amount is paid in full. However, Australian residents who invest their winnings will be taxed on capital gains, interest, or dividends.

Canada: You Keep It All

Similar to Australia and the UK, Canadian lottery winners get to keep their entire prize. The Canada Revenue Agency does not tax lottery winnings, whether you play Lotto Max, Lotto 6/49, or regional games.

However, any income generated through investments is taxable, and gifting large sums may incur tax scrutiny.

Italy: Flat Tax for Larger Wins

Italy imposes a 20% tax on lottery winnings above €500. This applies to games like SuperEnalotto and EuroJackpot.

Example:
– Win: €5 million:
– Tax: €999,900
– Take-home: €4,000,100

Still generous compared to many, but something to account for in your financial planning.

South Africa: No Tax on Lottery Winnings

South African players are fortunate—winnings from Lotto, PowerBall, and Daily Lotto are completely tax-free. Even better, you don’t have to worry about state-level taxes or withholding. Still, large wins may lead to investment-based tax obligations later.

Ireland: Windfall Treated As a Gift

In Ireland, all lottery prizes are paid tax-free. Winners of Irish Lotto, EuroMillions, or Daily Million get their full prize. If winners decide to share their wealth, the recipient could face Capital Acquisitions Tax, but the winner themselves is unaffected.

Brazil: Government Takes a 30% Slice

In Brazil, lottery winnings are taxed at a flat rate of 30%. There are no deductions, exemptions, or thresholds.

Example:
– Win: R$10 million
– Tax: R$3 million
– Take-home: R$7 million

Japan: Tax-Free Today, Taxable Tomorrow

Japan allows lottery winnings to be collected tax-free. However, any earnings from those winnings—whether from investing, saving, or gifting—may be taxed. Japan also has a gift tax, which can reach up to 55% if large amounts are transferred to others.

Mexico and Other Latin Countries: Flat Taxes

In Mexico, lottery winnings are taxed at around 7%, relatively low compared to other nations. Argentina and Colombia, however, can apply rates as high as 30–35%. Always check local rules before purchasing tickets abroad or online.

Can You Avoid Taxes by Playing Online?

Buying tickets through an online lottery concierge or agent like LotteryPros might change your tax obligations. The key factor is where the ticket is purchased and how it’s claimed.

If you buy a U.S. Powerball ticket from abroad and win, the IRS will still tax you. However, if you win a EuroMillions prize via a UK ticketing agent, the prize might be tax-free.

Always read terms carefully and consult a tax professional if you win big online.

Anonymous Winners: Can You Stay Hidden?

Another major difference between countries is anonymity. In the U.S., only a few states allow anonymous claims. In the UK, Germany, Ireland, and South Africa, winners can stay private. In countries like Brazil or Italy, disclosure may be required.

This can affect not just privacy, but also safety and financial planning—especially when dealing with media attention or public scrutiny.

Bonus: Where You Should Play If You Want to Keep the Most

If you’re jackpot-hunting with an eye on keeping your fortune, here are the best destinations:
– Tax-free: UK, Canada, Ireland, Australia, South Africa, Germany, New Zealand
– Modest flat tax: Italy (20%), Spain (20% after threshold), Mexico (7%)
– High tax: USA (up to 37% + state), Brazil (30%), Argentina (~31%)

Final Thought: Plan Beyond the Win

Winning the lottery is just the beginning. What happens next depends on your location, how you claim, and how you manage your wealth. While some players enjoy every cent, others watch nearly half slip away in taxes.

No matter where you play—from the tax-heavy U.S. to tax-free Ireland—LotteryPros connects you to the world’s biggest jackpots. Make your dreams global—and know what to expect when they come true.