Lottery tax outside the United States
Germany, France, the United Kingdom, Ireland, Canada, Australia and Japan do not tax lottery prizes at all; South Korea taxes them in two bands. Spain, Italy and Portugal take a flat share of the part above a tax-free amount before paying, Poland and the Philippines a flat share of the whole prize once it is above one, and Brazil announces its prizes already net of tax: none of them adds the prize to the winner's income as the United States does.
| Country | Tax on lottery prizes | Prize before tax | Tax | Paid to the winner |
|---|---|---|---|---|
| Spain | 20% of the part of each prize above €40,000 | €400,000 | €72,000 | €328,000 |
| Italy | 20% of the part of each prize above €500 | €1,000,000 | €199,900 | €800,100 |
| Portugal | 20% of the part of each prize above €5,000 | €20,000 | €3,000 | €17,000 |
| Brazil | 30% withheld; the announced prize is already net | R$ 142,857,143 | R$ 42,857,143 | R$ 100,000,000 |
| Germany | Not taxed: the prize is paid in full | €1,000,000 | €0 | €1,000,000 |
| United Kingdom | Not taxed: the prize is paid in full | £1,000,000 | £0 | £1,000,000 |
| France | Not taxed: the prize is paid in full | €1,000,000 | €0 | €1,000,000 |
| Canada | Not taxed: the prize is paid in full | C$1,000,000 | C$0 | C$1,000,000 |
| Ireland | Not taxed: the prize is paid in full | €1,000,000 | €0 | €1,000,000 |
| Australia | Not taxed: the prize is paid in full | A$1,000,000 | A$0 | A$1,000,000 |
| Japan | Not taxed: the prize is paid in full | ¥100,000,000 | ¥0 | ¥100,000,000 |
| South Korea | Tax-free up to ₩2,000,000; above it 22% of the prize up to ₩300,000,000 and 33% of the rest | ₩2,000,000,000 | ₩627,000,000 | ₩1,373,000,000 |
| Poland | 10% of the whole prize once it is above PLN 2,280 | PLN 10,000,000 | PLN 1,000,000 | PLN 9,000,000 |
| Philippines | 20% of the whole prize once it is above ₱10,000 | ₱100,000,000 | ₱20,000,000 | ₱80,000,000 |
Two ways of taxing a prize
Spain, Italy and Portugal withhold a fixed share of the part of each ticket's prize above a tax-free amount, so small prizes are paid in full and the prize does not go on the income tax return. Poland and the Philippines also withhold a fixed share, but of the whole prize once it is above the tax-free amount. Brazil announces its prizes after the income tax has been withheld at source, so the announced jackpot is what the winner receives.
For the United States, where the prize is added to your income and taxed at your federal and state rates, use the winnings tax calculator or compare the states.
Won at a casino or a lottery in the United States while living abroad? Visitors pay 30% there unless a tax treaty exempts them: the US casino tax refund for foreign visitors.
Rules checked on 29.09.2026 against each country's tax authority or two independent sources. Estimates, not tax advice.
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