No. Lottery and gambling winnings are generally not taxable in Canada, because the CRA treats them as windfalls, not income.
What is taxable after you win?
The prize is not taxed, but the interest, dividends or gains you earn when you invest it are. Report that income each year like any other.
What about winnings from outside Canada?
Some countries, including the United States, withhold tax on prizes won there. The CRA does not refund that tax, but you may be able to claim a foreign tax credit in some cases, so keep the paperwork.
Is there an exception?
If gambling is your business, for example you play as a professional with a system and a regular pattern, the CRA can treat the winnings as business income. This is rare. If it might apply to you, speak to a licensed professional.
What should you do after a big win?
Keep the claim paperwork, put the money in a safe place and ask a licensed advisor about investing it. Our page on tax brackets shows how the interest will be taxed.
For other payments, see the table on Is it taxable? and the income tax calculator.
Where does this information come from?
The general rule comes from the Canada Revenue Agency. The existing page Canada lottery tax has more background. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.