Do I have to pay tax on gambling winning in Canada? Or what percentage of my gambling winning do I have to pay as tax in Canada?
These two questions and many other are what some people are asking about gaming taxation in Canada. Many of these people are eager to know answer to these questions base on their experience in US and other jurisdiction where gambling winning is taxed.
In US in particular, IRS requires 25% of gambling (casino, lottery, keno, bingo, sweepstakes and many other) winning to be withheld as tax, but this is not so in Canada. In Canada gambling winning is not consider as taxable income so you don’t have to pay tax on any gambling winning in the country.
The Canadian tax law states that money receive as a ”prize for achievement in a field of endeavor ordinarily carried on by taxpayer” is taxable, while ”Windfalls” are not taxable.
Some people are arguing that Canadian who gamble should have their winning taxes as prize or as an income from business. But while this argument rage on there is no province in Canada where gambling winning is tax by any percentage or by whatsoever means.