Lottery taxes in other countries
Let's start with European lotteries. Tax laws regarding lottery winnings vary across the EU.. Below is a summary of the tax rates on lottery winnings.
In Spain until 2013 years, lottery winnings were not taxed at all. However, under the influence of the crisis, with 1 January 2013 year the tax was introduced. It should be noted, that the winnings are less 2500 euros are not taxed. Otherwise, the tax rate will be twenty percent. This applies to everyone, and not just Spanish citizens. That is, if you win via the Internet, then you still have to pay.
In the UK and Germany, lottery winnings are not taxed. There is also a zero tax rate on lottery winnings in Finland.
In Italy, the tax on lottery prizes is six percent.. The amount must exceed five hundred euros. In Bulgaria, lottery winners pay ten percent, in the Czech Republic - twenty percent.
At all, Let's try to answer the question below, what tax will Russians have to pay?, who decided to play non-Russian lotteries, and to foreign.
Let's repeat, what if between Russia and the country, where was the ticket purchased, there is a double tax treaty, then the winner pays tax only in that country, where he won. But if there is no such agreement, then the tax must be paid twice.
There are also no taxes on lottery winnings in Australia..
And in conclusion about one of the most lottery countries - the USA. The highest tax on winnings is paid from American lotteries. It varies by state., where was the ticket purchased. The minimum is twenty five percent, what is the federal tax rate. Local - state tax may be added to it, or even a separate city. For example, in Michigan there is an additional tax on lottery winnings - 4,35%, in Illinois - 3%, in New Jersey - 10,8%, and in the states of California, Texas and Nevada it is completely absent.
Eventually, taking into account all taxes, the lucky winner may lose almost forty percent of the winnings
If you are a Russian citizen and have won the American lottery, it doesn't matter, buying tickets in person, or via the Internet, then you will pay the maximum - 35 percent - this is prescribed in American legislation
For example, You single handedly won 640 million dollars to megamillions. From 42 states participating in this lottery, five - New Hampshire, Tennessee, Texas, Washington and South Dakota have no state taxes on lottery winnings at all.. What remains is the federal tax - 35%. I.e. with everyone 640 you will give 161 million dollars. And if you, for example a New Yorker, that 8,8% will leave the state budget, 3,9 - to the city budget. You will also have to pay federal tax.. Thus, You will already lose 199 million dollars.
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Tax rate on winnings of individuals in 2023 year
With a winning amount of 4 to 15 outside. rubles tax rate is 13 %. Moreover, an individual pays tax on the difference between taxable and non-taxable amounts. For example, the winnings amounted to 5 outside. rubles. Then you have to pay 130 rubles as tax: (5000-4000)×13%. And when you win 2 million rubles - 259 480 rubles: (2000000 – 4000)×13 %.
This situation applies to lotteries, to winnings on bets on sporting events and bookmakers. That is, the rate does not depend on the location, where did you win, and is accrued only from the winning amount. Moreover, if it is more 15 outside. rubles, these are the concerns of the lottery organizer. Won, usually, receives the amount already minus tax.
However, you can win not only money, but also other material goods - a car, apartment or tour. If the prize is received as part of a competition or promotion, the bet size will be 35%. Tax can be calculated using the same formula: (winning - 4000)×35 %. But even here the winner does not have to pay anything., since organizers usually immediately include taxes as expenses when holding an event.
Separate tax rate in 30% set to win for non-residents - foreigners or those, who lives in Russia less 183 days.
Is it possible not to pay winnings or reduce the amount of payments?
Let's note right away, that there are no tax benefits for paying such contributions. This also applies to privileged categories of citizens.: disabled people, pensioners, participants in hostilities, etc.. Note, what if the prize went to a minor, The winner's legal representatives will be able to receive the winnings: parents or guardians. They are the ones who will manage the funds..
Note, that the exception for minors will be participation in free lotteries and competitive events, which are carried out at the school or municipal level. Such gifts or any services, provided to a minor, can be used at their discretion.
Regarding exemption from tax payments, the law provides for this possibility.. In particular, the state does not require paying taxes on small winnings. The legislator sets a limit of 4 000 rubles. If the total amount of winnings during the year is below the established financial limit, no need to pay. All winnings in excess of the established limit are subject to taxation in accordance with the established procedure..
Taxes on Powerball Payouts
As we said before, the IRS treats lottery winnings as taxable income, which means that you’ll be paying both federal and state tax.
How lottery winnings are taxed on a federal level
How much you’ll be paying in federal tax depends on your tax bracket and whether you’re a single or joint filer – but your winnings can easily push you to a higher bracket. You can access federal tax rates and calculators via the IRS website.
Let’s say that you’re a single filer making $45,000 a year, and won a whopping $100,000 in the Powerball lottery. That raises your taxable income to $145,000 – and bumps up your marginal tax rate from 22% to 24% (for simplicity’s sake, we assume there are no deductions).
You don’t have to pay 24% on the entire $145,000 though. If, say, the tax bracket that $150,000 is in starts from $95,376, you’ll only have to pay 24% on the income that surpasses it. In this case, that would be $49,624.
This means that you’d owe $16,290 on the first $95,376, and 24% of $49,624. This means that of your $100,000 winnings, you’ll be paying a total of $28,199.76 in federal tax.
How lottery winnings are taxed on a state level
Besides the federal tax, some states will also take a piece of your winnings – how much depends on where you live. The tax rates vary from 0% to 8%, with the State of New York levying the largest tax rate. 9 of 51 states don’t levy any income tax at all:
- Alaska
- Florida
- Nevada
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
If bought your ticket from a state where you don’t ordinarily reside, the state where you bought the ticket and got paid will withhold its taxes.
You can easily calculate both your federal and state tax liabilities using our tax calculator above.
The biggest winnings in America
IN 2016 year there was a prize draw for the amount $1,589 billion. Won 3 ticket: 2 Tennessee resident, 2 from California and more 2 from Florida. Absolutely all winners took advantage of a one-time payment equal to $327,8 million for each couple.
The biggest winnings in American lotteries - $1,589 billion
IN 2013 There was a drawing for prizes in the amount of $590,5 million. A resident from Florida became the jackpot winner.. The winner exercised the right to receive a one-time payment in the amount of $370,9 million.
The biggest winnings in the US lottery are: $590,5 million
IN 2012 There was a drawing for prizes in the amount of $587,5 million. The owners became 2 residents from Missouri (one ticket) and 1 from Arkansas. All winners received a one-time payment equal to $192,3 million.
Big wins in American lotteries - $587,5 million
IN 2015 There was a drawing for prizes in the amount of $564 million. The owners became 1 resident from North Carolina and 2 residents from Texas and Puerto Rico. Absolutely all winners took advantage of a one-time payment equal to $127 millions.
Big wins in the US lottery - $564 million
IN 2016 There was a drawing for prizes in the amount of $487 millions. The winners were residents from New Hampshire. The winners benefited from a one-time payment equal to $342 million.
https://youtube.com/watch?v=Lc-Xdhi2HiE&pp=ygVA0J_RgNC-0YbQtdC90YIg0L7RgiDQstGL0LjQs9GA0YvRiNCwINCyINC70L7RgtC10YDQtdGOINCyINCh0KjQkA%3D%3D
In addition to federal taxes, your winnings may also be subject to local taxes.
Important to remember, what's the tax, charged to your prize, depends not only on the state, but also on your individual circumstances
The following table shows the withholding rate for each participating jurisdiction, and also the threshold value, When do prizes begin to be taxed at the state level?.
| State income tax | Jurisdiction |
|---|---|
| No state tax on winnings | California, Florida, New Hampshire, Pennsylvania, Puerto Rico, South Dakota, Tennessee, Texas, US Virgin Islands, Washington State, Wyoming |
| 2.9% | North Dakota |
| 0.03 | New Jersey |
| 3.07% | Pennsylvania |
| 3.4% | Indiana |
| 3.75% | Illinois |
| 0.04 | Colorado, Missouri, Ohio, Oklahoma, Virginia |
| 4.25% | Michigan |
| 0.05 | Arizona, Iowa, Kansas, Louisiana, Maine, Massachusetts, Nebraska |
| 5.75% | North Carolina |
| 5.99% | Rhode Island |
| 0.06 | Georgia, Kentucky, New Mexico, Vermont |
| 6.5% | West Virginia |
| 6.6% | Delaware |
| 6.9% | Montana |
| 6.99% | Connecticut |
| 0.07 | Arkansas, South Carolina |
| 7.25% | Minnesota |
| 7.4% | Idaho |
| 7.75% | Wisconsin |
| 0.08 | Oregon |
| 8.5% | Washington |
| 8.75% | Maryland |
| 8.82% | NY |
Glossary of Terms
Advertised Jackpot: The total payment a winner would receive should they choose the annuity option for any given drawing. This number is based on the funds in the prize pool (including all prior rollovers), expected ticket sales for the next drawing, and current market interest rates.
Annuity Payout Option: Payment scheme wherein prizes are awarded starting with 1 immediate payment followed by 29 yearly payments. These payments are graduated – meaning they increase by 5% each year to account for inflation. The total value of all payments is equivalent to 100% of the advertised jackpot.
Lump Sum Option: Payment scheme wherein a one-time payment is immediately awarded to the winner. The total value is approximately 61% of the advertised jackpot. This is also known as the cash option and is the more popular choice among jackpot winners.
Federal Taxes: Income tax withheld by the US government, including income from lottery prize money. This can range from 24% to 37% of your winnings.
State Taxes: Additional tax withheld, dependent on the state. This varies across states and can range from 0% to more than 8%.
Tax Liability: The taxes you will have to pay in order to receive your prize. This is computed as federal taxes + state taxes. Please note that in some cases, you might have to pay additional taxes.
Gross Payout: The total prize awarded to a winner before federal and state taxes are applied.
Net Payout: The remaining prize is awarded to a winner after federal and state taxes are applied.
- New Jersey Lottery Results and Winnings
- Tennessee Lottery Results and Winnings
- Mississippi Lottery Results and Winnings
- Arizona Lottery Results and Winnings
Tax on lottery winnings in Russia 2022 from what amount
Tax in 35% used when receiving prizes in so-called incentive lotteries, (usually carried out by large companies). The only goal of such lotteries is to attract as many customers as possible. In this case, the client does not buy a ticket, and gets the opportunity to win and participate in manufacturers’ promotions if certain conditions are met (usually when purchasing a certain type of product). The tax on winnings from incentive lotteries is 35%, The winner must pay for it himself. The exception is the case, when the incentive lottery prize is cash, then the organizers themselves collect the tax and the winner simply receives the amount with its deduction.
If you received a cash win, then you first need to declare it. It is necessary to submit a declaration in form 3-NDFL in the general manner - before 30 April of the current year last year. That is, if you are in 2022 hit the jackpot this year, then up to 30.04.2022 You need to provide a declaration to the Federal Tax Service at your place of residence, in which to indicate:
Half a billion dollar happiness
Grand Prize, whose size 435 000 000 dollars, the participant managed to pick up, correctly identified 5 main numbers of the game and one additional. In the Powerball lottery they are indicated in red and white., respectively.
One player was the winner, therefore there was no need to distribute the prize amount. The founders of the lottery game currently do not advertise information regarding the winner’s personal data, and especially his citizenship. All that is known is, that the winning game ticket was purchased in the state of Louisiana at a store in Lafayette.
Hearing such news, many people immediately wonder: “How to play foreign lotteries in Russia?». But here there is already good news. As the saying goes, who seeks will always find. In our case, we are talking about online participation options.
If you are interested in the lottery and are already looking, how to buy a Powerball ticket (Powerball), You should first familiarize yourself with the rules and features of the game. Buying tickets for domestic lottery games online differs in many ways from purchasing tickets for American games.. You should spend enough time studying the nuances, so as not to lose your money.
Over the past few years, Powerball has become available online to players in many countries., including Russia. Respectively, The number of foreign participants and the number of major prizes they won began to increase. This fact outraged the people of the United States so much, that they even began to file complaints with government officials.
Situation, at first sight, seems pretty ridiculous, after all, Russians or other foreign players cannot turn their luck away from American participants. The main thing is that such complaints in no way affect the participation of Russian players.
https://youtube.com/watch?v=w3l6-jBY1SM&pp=ygVA0J_RgNC-0YbQtdC90YIg0L7RgiDQstGL0LjQs9GA0YvRiNCwINCyINC70L7RgtC10YDQtdGOINCyINCh0KjQkA%3D%3D
Gambling and lotteries Tax-free countries
Fortunately, There is tax-free countries which will not charge taxes on your lottery winnings. These countries include Austria, Australia and Belgium. In this section we will talk more about these tax-free countries and how, when were they created.
Austria
There is a company in Austria called Casino Austria, owns casinos and lotteries in the country. The company was founded in 1934. Winners are not taxed on their jackpot, because it not subject to seven types of income tax. Casino Austria pays tax on lottery winnings instead.
Australia
Oz Lotto which is The Australian Lottery is owned by Tatts Group. The organization was founded by George Adams in 1881 year in Melbourne. Winning the lottery in Australia considered tax-free income and therefore winners will not be taxed on their prizes.
Belgium
The Belgian National Lottery was founded in 1934 year. and currently belongs to Jenny Heck. Fortunately, winnings 100% no taxes. Every National Lottery game regulated by special Royal Decree. The current legal framework for lotteries stems from Lotteries Law 1851 Mr. and the National Lottery Act 2002 Mr..
Canada
Western Canada Lottery Corporation Canadian non-profit organization, Which was founded in 1974 year. This organization operates lotteries in Canada. Like a jackpot winner, You are getting keep your entire prize because winning the lottery are not considered taxable. lotteries such as Lotto Max or 649 are considered unexpected income and, hence, not subject to taxation.
Denmark
In Denmark The lottery supplier is responsible for paying taxes. It means, that no tax obligations for winners. The Danish Lottery is regulated The Danish Class Lottery. The lottery was launched as Royal Lottery Copenhagen Class, organized by the Royal Orphanage and founded in 1753 year..
Germany
The most popular lottery in Germany LOTTO24 and belongs ZIL Group. This organization was founded in 1995 and was originally developed for modify computer software. Although Germany has strict income tax laws, side does not tax lottery winnings.
South Africa
The National Lottery Commission regulates South African lottery, based in 2000 year. South African lottery winnings are considered capital and are therefore not subject to taxation.
Deadlines for payment of tax on winnings of individuals in 2023 year
Before, how to pay tax, it is necessary to fill out a declaration in form 3-NDFL. The document can be taken to the tax office at your place of residence or filled out via an electronic form in your personal account on the website of the Federal Tax Service (Federal Tax Service). This must be done before 30 April following the reporting year.
Regarding tax payment, then you need to transfer money to the budget before 15 July of the following reporting year. For example, if the winnings were in 2022 year, then you need to pay the tax before 15 July 2023 of the year. Payment can be made in your personal account on the Federal Tax Service website.
Other methods - at a bank branch using a payment order, through the Gosuslugi portal or your bank’s application.
Tax on winnings
So, for any winning of money or any property, all citizens are required to pay personal income tax, which is called personal income tax. When calculating its value, as well as determining the procedure for its payment, the source of income and its size are taken into account. This data will influence, on whose shoulders will the tax liability fall?: organizer or citizen. All the most important nuances are set out in the Letter from the Ministry of Finance dated 11.04.2018 № 03-04-07/23939.
The main thing is the amount of income, received when winning in a gambling game, of totalizers, at the bookmaker's office, in the lottery.
| Amount of income | Who pays | How do they pay? | Payment amount |
| Greater than or equal to 15 000 rubles | Tax agents: operator, lottery distributors, game organizers | Reducing the winnings | 13 % or 35 % (cm. below are the types of lotteries) |
| Less 15 000, but more 4000 rubles | Individuals, those who received the winnings | On one's own | 13 % from the amount, exceeded 4000 |
| Less 4000 rubles | Not taxed | — |
To find out, what is the tax on lottery winnings 2020, must be taken into account, what type of lottery was it:
- State lottery - the rate will be 13 %.
- Winning, promotion prize - bet 35 %, if the amount is more 4000 rubles.
IMPORTANT!
If a citizen received small winnings several times during the year, and their amount exceeded 4000, he will have to pay tax on the excess amount, and independently.
There is also a nuance regarding the taxation of gambling winnings.: amount, on which you will have to pay tax, is the difference between income and rate, made by the player.
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